Financial Analysis and Stock Markets
|International Business Administration
|Business and Management
|Type of degree
Summer Semester 2024
|Course unit title
|Financial Analysis and Stock Markets
|Course unit code
|Language of instruction
|Type of course unit (compulsory, optional)
|Teaching hours per week
|Year of study
|Level of the course / module according to the curriculum
|Number of ECTS credits allocated
|Name of lecturer(s)
Successful completion of all courses of the module Accounting and Finance.
- Financial statements: Balance sheets, profit and loss accounts and
- cash flow statements
- Balance sheet analysis using financial ratios
- Profit manipulation and accounting policy choices: cases and scandals
- Company valuation: How do stock markets react to reported financials?
- Auditing and financial audit: Investigating accounting fraud
- Portfolio theory and financial analyst reports: Stock selection
- Types and uses of derivative financial instruments
Due to the complexity of financial reporting and the large number of companies listed worldwide, fundamental company and share analysis is of great importance on the capital markets. This course introduces the basic accounting standards in an international context, the recognition and measurement differences that are significant in the preparation and analysis of financial statements, and the key analytical steps in interpreting the resulting information. Not only students who want to major in Accounting and Finance will acquire important skills for understanding corporate reports in this course.
Students will become familiar with the tools and techniques of financial management and their application in management decision making. They deepen their understanding of financial theory and the financial environment in which a company operates in order to develop appropriate strategies. Students acquire applied knowledge in a range of basic financing concepts, portfolio theory, earnings forecasting, cash flow analysis, recognising balance sheet manipulation and the role of annual audits and business valuation.
Upon successful completion of the course, students will be able to understand the basic presentation rules in financial accounting and to prepare a simple income statement, balance sheet and cash flow statement in order to analyse financial statements and report the results of the analysis according to international professional standards.
A short introduction to derivative financial instruments completes the course.
Interactive course with lecture, case studies, exercises in individual and group work, presentations and homework.
Pre-assignment, participation during the seminar in the form of contributions and short presentations (individual or group assignments), post-assignment, individual weighting as determined by the instructors, announcement at the beginning of the semester
Subramanyam, K. and J. Wild (2014), 'Financial Statement Analysis' 11e, ISBN-13 978-0078110962, McGraw-Hill Higher Education.
Horngren, C., G. Sundem, J. Elliot and D. Philbrick (2013), 'Introduction to Financial Accounting' 11e, Prentice Hall.
Robert L., P. Libby and D. Short (2014), 'Financial Accounting' 8e, ISBN 9780077516970, McGraw-Hill Higher Education.
Ross, S.J., R.W. Westerfield and B.D. Jordan (2015), 'Fundamentals of Corporate Finance' 11e, McGraw-Hill Irwin.
Cheol E.S. and B.G. Resnick (2017), 'International Financial Management' 8e, McGraw Hill/Irwin.
International Financial Reporting Standards, www.ifrs.org
Social Science Research Network, www.ssrn.com
Classes with compulsory attendance