Empirical Financial Research

Course aim

To provide students with an introduction to the techniques used in the analysis of financial and business data and in finance research; the use of these empirical techniques; and experience in the application of these methods in basic empirical financial research

Course content

Introduction to the analysis of financial and business data: its importance and role. Methodological issues relevant to data analysis in finance and business: the link between theory and analysis. Transforming and presenting financial data: tables, charts, graphs, use of percentage changes, ratios, the construction and use of index numbers, and use of real versus nominal values in financial analysis. Summary measures for data: their construction, use and limitations. Writing in finance: descriptive and summary reports; empirical research reports. Introduction to linear regression: the bivariate model, its applications, and measures of fit; interpretation and applications of multiple regression in financial research and analysis; normal and t distributions in regression; and hypothesis testing. Introduction of specification problems: multicollinearity, autocorrelation and heteroscedasticity; Dummy variables and the use of lagged variables in regression; Long-run relationships in finance: the order of integration of a time series, co-integration and long-run relationships between time series, and testing for unit roots.

Textbook(s)

Nil

Prerequisite(s)

Common to all relevant programs
Subject Area & Catalogue Number	Course Name
ECON 2007	Empirical Business Analysis
BANK 2007	Business Finance

Corequisite(s)

Nil

Teaching method

Component	Duration
INTERNAL, CITY WEST
Preparatory	1 x 1 week
Seminar	3 hours x 10 weeks
EXTERNAL, CITY WEST, DISTANCE EDUCATION
External	N/A x 10 weeks

Note: These components may or may not be scheduled in every study period. Please refer to the timetable for further details.

Assessment

Assignment, Continuous assessment, Examination

Fees

EFTSL*: 0.125
Commonwealth Supported program (Band 4C)
To determine the fee for this course as part of a Commonwealth Supported program, go to:
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Fee-paying program for domestic and international students
International students and students undertaking this course as part of a postgraduate fee paying program must refer to the relevant program home page to determine the cost for undertaking this course.

Non-award enrolment
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* Equivalent Full Time Study Load. Please note: all EFTSL values are published and calculated at ten decimal places. Values are displayed to three decimal places for ease of interpretation.