Financial Markets - JEM037

• Title: Financial Markets
• Guaranteed by: Institute of Economic Studies (23-IES)
• Faculty: Faculty of Social Sciences
• Actual: from 2022
• Semester: winter
• E-Credits: 6
• Examination process: winter s.:
• Hours per week, examination: winter s.:2/2, Ex [HT]
• Capacity: 97 / 97 (90)
• Min. number of students: unlimited
• 4EU+: no
• Virtual mobility / capacity: no
• State of the course: taught
• Language: English
• Teaching methods: full-time
• Teaching methods: full-time
• Additional information: http://ies.fsv.cuni.cz/en/syllab/JEM037
• Note: course can be enrolled in outside the study plan; enabled for web enrollment; priority enrollment if the course is part of the study plan
• Guarantor: prof. Ing. Evžen Kočenda, M.A., Ph.D., DSc.
• Teacher(s): Samuel Fiifi Eshun; prof. Ing. Evžen Kočenda, M.A., Ph.D., DSc.; Mgr. Lukáš Petrásek; Mgr. Kumar Chandrakamal Pramod Kumar
• Class: Courses for incoming students

Annotation

English

Last update: prof. Ing. Evžen Kočenda, M.A., Ph.D., DSc. (28.09.2022)

The course introduces students to selected topics in financial markets research. It provides an overview of financial markets, new challenges facing financial system participants, ways of measuring market reaction to new information, evaluating its efficiency, documenting pricing anomalies, as well as introduction to the impact of micro-structure decisions on the financial markets. The course is organized around selected research topics that are presented in current and influential academic articles. Empirical evidence is presented during lectures. In the seminar sessions, students are asked to work in small groups, present and discuss the assigned readings.

Literature

English

Last update: prof. Ing. Evžen Kočenda, M.A., Ph.D., DSc. (28.09.2022)

Hillier, D., Grinblatt, M., Titman, S., 2013. Financial Markets and Corporate Strategy, 2nd European Edition, McGraw Hill.

Madura, J., 2015. Financial Markets and Institutions, 11th Edition, South-Western, Cengage Learning.

A list of readings covering selected academic articles can be found in the coursebook.

Teaching methods

Last update: prof. Ing. Evžen Kočenda, M.A., Ph.D., DSc. (27.09.2023)

Dear students,

I hope you are all doing well. Let me inform you about some essential arrangements for the course on Financial Markets, JEM037, that you registered for at the IES.

The IES courses are organized in a present mode -- students attend lectures in their presence. The lectures will be held each Tuesday, 11h00-12h20, in room #314, starting from Oct. 3, 2023 as planned in the IES schedule. Seminars will take place each Wednesday, 08h00-09h20, starting from Oct. 18, 2023.

During the first lecture on Oct. 3, all information about the course structure, seminars etc. will be presented. Finally, a coursebook is ready in the SIS to access once the new academic year is activated.

I look forward to meeting you soon and good luck with your studies.

Evžen Kočenda

Requirements to the exam

English

Last update: prof. Ing. Evžen Kočenda, M.A., Ph.D., DSc. (28.09.2022)

Grading for this course is based on final exam, seminars, activity etc. (details are given in a coursebook). Maximum number of points attainable is 100. Final grade will be given based on the following distribution:

Points	Grade
100 - 91	A
90 - 81	B
80 - 71	C
70 - 61	D
60 - 51	E
50 - 0	F/fail

Syllabus

English

Last update: prof. Ing. Evžen Kočenda, M.A., Ph.D., DSc. (28.09.2022)

Lectures

01.   Introduction. Financial Crisis 1

Introduction to the course. Requirements. Seminar. 2007-2009 Subprime mortgage crisis.

 

02.   Financial Crisis 2

Subprime mortgage crisis. New structured instruments.  Impact on the countries of Central and Eastern Europe (CEE).

 

03.   Efficient Markets

Efficient market hypothesis (EMH): weak form, semi-strong form, strong form. Relevant information. Speed of adjustment. Hypothesis testing.

 

04.   Behavioral Finance

Examples of market inefficiencies.  Investor sentiment, noise trade risk, and professional arbitrage. Passive vs. active management.

 

05.   Liquidity

Global liquidity. Market Liquidity. Funding Liquidity. Interaction between market liquidity and banks´ funding liquidity. Measurement and indices.

 

06.   Money Markets

Main features of the money markets. Central bank operations. Money market indicators. Determinants of interbank rates.

 

07.   Forex Market

Main features of the forex market. Key players, instruments and operations. Links to money markets.

 

08.   Financial Regulation

Financial system regulation. New regulation requirements. Challenges to financial market participants introduced by new financial regulation.

 

09.   Risk Management

Importance of risk management. Tricky aspects of introducing the efficient risk management system. Differences among firms in motivation for hedging cash flow risk or against changes in firm values. Risk management of the interest rate risk vs value of portfolio.

 

10.   Incentives, Information & Corporate Control

Managerial incentives and financial decisions. Information content of earnings announcements, change in the dividend policy, debt-equity choice.

 

11.   Mergers, Acquisitions & Restructuring

Mergers and Acquisitions as the growth strategies. Shedding assets as gelation of values. Changes in the ownership structure for value creation.

 

12.   Contagion and Spillovers

Volatility on financial markets. Spillovers across markets and empirical evidence.

 

13.   Stock Market and Security Offerings

Function of the stock market as a source of funds. Emergence of securities on stock market.