CORPFIN 7050 - International Financial Management (M)
North Terrace Campus - Semester 2 - 2015
General Course Information
Course Code CORPFIN 7050 Course International Financial Management (M) Coordinating Unit Business School Term Semester 2 Level Postgraduate Coursework Location/s North Terrace Campus Units 3 Available for Study Abroad and Exchange Y Prerequisites COMMERCE 7033, ACCTING 7019 & CORPFIN 7005 Corequisites ECON 7200 Course Description This course focuses on the theoretical and practical knowledge required for the management of financial and investment functions of multinational corporations. Students will discover how the international capital markets, foreign exchange markets, and the derivatives market can be used to manage transaction and operating risks facing the multinational firm. Students will learn, through hands-on case studies and empirical evidence how to manage multinational companies' investment and financing activities. The relevance of country risk and international corporate governance in cross-border investments will also be examined. The general emphasis is on the identification and management of opportunities and risk relating to international investments, exchange rate fluctuations, international financial markets and government policy changes.
Course Coordinator: Professor Alfred Yawson
Location: Room 12.38, 10 Pulteney Street
Telephone: 8313 0687
Consultation: Wed 10 am – 12 pm
Course Website: www.myuni.adelaide.edu.au
The full timetable of all activities for this course can be accessed from Course Planner.
Course Learning Outcomes
By the end of the course, you should be able to:
1. Understand international capital and foreign exchange market
2. Identify and appraise investment opportunities in the international environment
3. Identify risk relating to exchange rate fluctuations and develop strategies to deal with them
4. Identify and evaluate foreign direct investment and international acquisition opportunities
5. Develop strategies to deal with other types of country risks associated with foreign operations
6. Express well considered opinion on issues relating to international financial management.
University Graduate Attributes
This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:
University Graduate Attribute Course Learning Outcome(s) Knowledge and understanding of the content and techniques of a chosen discipline at advanced levels that are internationally recognised. 1 to 6 The ability to locate, analyse, evaluate and synthesise information from a wide variety of sources in a planned and timely manner. 1 to 6 An ability to apply effective, creative and innovative solutions, both independently and cooperatively, to current and future problems. 1 to 6 Skills of a high order in interpersonal understanding, teamwork and communication. 1 to 6 A proficiency in the appropriate use of contemporary technologies. 1 to 6 A commitment to continuous learning and the capacity to maintain intellectual curiosity throughout life. 1 to 6 A commitment to the highest standards of professional endeavour and the ability to take a leadership role in the community. 1 to 6 An awareness of ethical, social and cultural issues within a global context and their importance in the exercise of professional skills and responsibilities. 1 to 6
Required ResourcesButler, K., 2012. Fith Edition, Multinational Finance: Evaluating Opportunities, Costs, and Risks of Operations. Wiley.
- Eun, C. S., Resnick, B. G. (2012). International Financial Management, 6th Edition, McGraw-Hill, New York.
- Moosa, I. A. (2010). International Finance: An Analytical Approach, Third Edition, McGraw-Hill, Australia
- Shapiro, A.C. (2009). Multinational Financial Management, 6th Edition, Wiley.
- Journal articles
- Erel, I., Liao, R. C. and Weisbach, W.S. (2012) Determinants of Cross-Border Mergers and Acquisitions, Journal of Finance 67, 1045 – 1082. Wiley-Blackwell.
- Owen S.,Yawson A. (2010_.Human development and cross border acquisitions. Journal of Empirical Finance 17, 689-701. Elsevier.
- Rossi, R., Volpin, P. F. (2004). Cross-country determinants of mergers and acquisitions, Journal of Financial Economics 74, 277-304. Elsevier.
Online LearningPlease check your student email and MyUni as course-related announcements are communicated via email and also posted onto MyUni.
Learning & Teaching Activities
Learning & Teaching ModesTeaching & Learning Modes
In this course, we seek to create an interesting, challenging, relevant, and engaging education experience. To help achieve this objective we have a number of teaching aims:
- Create a climate of engagement, dialogue and ongoing feedback between students and lecturers regarding the content, teaching strategies, learning experiences and outcomes
- Cater for a variety of learning preferences and abilities by providing a range of learning activities and teaching methods
- Develop independent learning skills and create an environment that both provides structure and guidance as well as encouraging students to extend their learning
This course is a combination of formal lectures, tutorials (problem solving classes) and brief presentations by students. The lectures are used to explain concepts and to give real life examples of situations in which these concepts are used. The tutorials are for problem-solving and discussion of issues raised in the lectures. All tutorial questions are from end of chapter exercises in Butler. There is an expectation that students will engage in additional readings, as well as the required text. In all classes, students are encouraged to ask questions if there is material that they do not understand. The brief presentation involves detailing the weekly behaviour of the Australian dollar.
Tutorial questions will be discussed every week. Tutorials are an important component of your learning in this course. The communication skills developed in tutorials by regularly and actively participating in discussions are considered to be most important by the School and are highly regarded by employers and professional bodies.
The information below is provided as a guide to assist students in engaging appropriately with the course requirements.The University expects full-time students (i.e. those taking 12 units per semester) to devote a total of 48 hours per week to their studies. This means that you are expected to commit approximately 9 hours for a three-unit course or 13 hours for a four-unit course, of private study outside of your regular classes.
Students in this course are expected to attend all lectures throughout the semester.
Learning Activities SummaryLecture schedule
Week subject Butler ch. 1 Overview and background 1-2 2 Foreign exchange and eurocurrency market 3 3 The international parity conditions and their consequences 4 4 Quiz
Currency futures, currency options and currency swaps
5, 6, 7 5 Currency futures, currency options and currency swaps 5, 6, 7 6 Multinational Treasury Manangement 8 7 Managing transaction exposure to currency risk
Managing operating exposure to currency risk
8 Foreign market entry and country risk management
Multinational capital structure and cost of capital
9 Class Test 10 Multinational capital budgeting 13 11 Real options and cross-border investment strategy 16 12 Coporate governance and international market for corporate control 17, Assigned
The University's policy on Assessment for Coursework Programs is based on the following four principles:
- Assessment must encourage and reinforce learning.
- Assessment must enable robust and fair judgements about student performance.
- Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
- Assessment must maintain academic standards.
Assessment Due Date Weighting Related
Group Assignments TBA 20% 1 to 3 Class test Week 8 15% 1 to 6 Final Exam Exam period 65% 1 to 6
Assessment Related Requirements
1. To gain a pass in this course, an overall score of at least 50% must be obtained.
2. Legible handwriting and the quality of English expression are considered to be integral parts of the assessment process.
3. Students in this course are not permitted to take a dictionary (English or English-Foreign) into the examination.
4. The use of non-programmable calculator is permitted in this course.
Notes on Assessment
All set work must be provided by the due date and must be genuine attempts, to complete the course.
Legible hand-writing and the quality of English expression are considered to be integral parts of the assessment process. You may lose some marks in the class test and final examination because of poor hand-writing.
Assessment marks prior to the final exam will be displayed on MyUni. Students are encouraged to check their marks and notify the lecturer-in-charge of any discrepancies.
Details of each assessment component will be discussed in class and posted onto the subject webpage.
Assessment DetailDetails of each assessment component will be discussed in class and posted onto the subject webpage.
SubmissionNotes on Assessment
1. All set work must be provided by the due date and must be genuine attempts, to complete the course.
2. Legible hand-writing and the quality of English expression are considered to be integral parts of the assessment process. You may lose some marks in the class test and final examination because of poor hand-writing.
3. Assessment marks prior to the final exam will be displayed on MyUni. Students are encouraged to check their marks and notify the lecturer-in-charge of any discrepancies.Supplementary Examinations
Anyone who cannot submit a major assignment/sit an examination due to illness must submit the appropriate University of Adelaide form.
Normal doctor’s certificates alone do not have to be accepted.
An application must be accompanied by the form downloaded from: http://www.adelaide.edu.au/student/exams/pdfs/supp_applic.pdf
For a supplementary examination on compassionate grounds refer to: http://www.adelaide.edu.au/student/exams/pdfs/supp_applic.pdf.
To qualify for Academic supplementary Assessment students must achieve a total mark of at least 45%.
Grades for your performance in this course will be awarded in accordance with the following scheme:
M10 (Coursework Mark Scheme) Grade Mark Description FNS Fail No Submission F 1-49 Fail P 50-64 Pass C 65-74 Credit D 75-84 Distinction HD 85-100 High Distinction CN Continuing NFE No Formal Examination RP Result Pending
Further details of the grades/results can be obtained from Examinations.
Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.
Final results for this course will be made available through Access Adelaide.
The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.
SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.
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This section contains links to relevant assessment-related policies and guidelines - all university policies.
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