Corporate Finance and Investment

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Finance

MASTER INFINANCE ANDINVESTMENT2010


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02MASTER IN FINANCE AND INVESTMENT

It is not air to ask oothers what you areunwilling to do yoursel.Anna Eleanor Roosevelt


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IMPORTANCE OF FINANCE SPECIALIZATION

Finance is the lynchpin of taught-skills necessary for bothnavigating enterprises successfully, and ensuring stable economicactivity nationally and globally. It is composed of severalimportant facets and thus requires its practitioners to acquirea dedicated, focused and comprehensive set of training, to beappropriately qualied. The Master of Management in Finance &Investment Management (Master in Finance & Investment) at WitsBusiness School (WBS) is designed to ll this training need.

In fact, a specialization in graduate Finance is a hallmark ofmost renowned Business Schools globally. The reasons forthis phenomenon are: (1) Finance is an indispensable unifyingknowledge-area for success in both enterprise and themacro-economy. (2) Finance experts require a program-based

training to garner the necessary breadth and depth of knowledgefor its effective understanding and application.

Importantly, the WBS Master in Finance & Investment programdesign is motivated by the special need for Finance in theEmerging market context. Gone are the days when Finance wasmost relevant in the developed market context, due to the factthat nancial innovations emanated from this environment, withinternational nance transactions being essentially anintra-developed markets affair. With globalization, emergingmarkets have become inexorably connected to the dynamismof nancial markets and their breathtaking paced innovations.The contagion of the Sub-prime mortgage market (developedmarkets) originated global nancial crisis makes the case for whyemerging markets must acquire the requisite capacity needed tounderstand the workings of nancial markets, how to leveragetheir opportunities, and how to anticipate and mitigate theirsystemic threats.

The Master in Finance & Investment stands on three necessarypillars of Finance quantitative/macro-environment foundationknowledge, rm grasp of the workings of nancial markets andtheir evolutionary nature, and solid understanding of corporatenance and governance. The program is for high intelligence andmotivated individuals with relevant undergraduate degrees (ine.g., business, economics, engineering, mathematics, statisticsand law) who seek to pursue careers in specic areas of nanceeither as practitioners or researchers. The Master in Finance &Investment requires a set of co re courses, track-oriented courses,and a program thesis; with a 12-month, full-time completionperiod. Being a block-release based program, the duration isdesigned to equally accommodate students who are workingand needing to tool-up quickly for career advancement in thenance eld. The teaching staff is populated by top-rate Financeacademics from both WBS and partnering reputed international

graduate programs, and practitioners with rich nance industryexperience.

Kalu Ojah, Ph.D.Professor of FinanceDirector: Master in Finance & Investment

Finance is the lynchpin o taught-skillsnecessary or both navigating enterprises

successully, and ensuring stable economicactivity nationally and globally.


Until all o us havemade it, none o ushave made it.Rosemary Brown


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MASTER IN FINANCE AND INVESTMENT 06

These faculty members are research active and publish emerging

market and globally relevant nance articles in reputed

international journals as exemplied by the following samples:

Ncube, M and Satchell, S (2002), The statistical properties of

Black-Scholes option pricing, Mathematical Finance, 7:3; Ncube,

M (1996), Modelling implied volatility with OLS and panel data

models, Journal of Banking & Finance, 20:1; Asea, P and Ncube,

M (1998), Heterogeneous information arrival and option pricing

Journal of Econometrics, 83; Gietzmann, M, Ncube, M and Selby,

M (1997), Auditor performance, implicit guarantees, and the

volatility of legal liability, Journal of International Auditing, 1:1;

Bhimani, A and Ncube, M (2006), Virtual integration cost and

the limits of supply chain scalability, Journal of Accounting &

Public Policy, 25:4; The South African Dictionary of Finance ed.

Ncube, M (2009); Mokoaleli-Mokoteli, T, Tafer, R, and Agarwal, V,

(2009), Behavioral bias and conicts of interest in analyst stock

recommendations, Journal of Business Finance & Accounting,

36:3; Ojah, K and Karemera, D (1999), Random walks and market

efciency tests of Latin American emerging equity markets: Arevisit, The Financial Review, 34:2; Ojah, K and Manrique, J

(2005) Determinants of corporate debt structure in a privately

dominated debt market: A study of the Spanish capital market,

Applied Financial Economics, 15:7; Ojah, K and Monplaisir,

L (2003), Investors valuation of global product design and

development, Journal of International Business Studies, 34:5;

Ojah, K (2007), Cost, valuation and long-term operating effects

of global strategic alliances, Review of Financial Economics,

16:1; Gwatidzo, T and Ojah, K (2009), Corporate capital structure

determinants: Evidence from ve African countries, African

Finance Journal, 11:1; Ojah, K, Gwatidzo, T and Kaniki, S (2009),

Legal environment, nance channels and investment: Evidence

from the East African Community Journal of Development Studies,

forthcoming.

ONE OF AFRICAS PREMIER BUSINESS SCHOOLS

The WBS brand is unquestionably one of the most recognized and

sought after in South Africa and Africa as a whole. It exemplies

its mission statement of sculpting global leaders. It has been

ranked for a number of years by the Professional Management

Review as the leading Business School in Africa, its MBA program

has been ranked #1 for the sixth consecutive year by the South

African Financial Mail, the London Financial Times has ranked

its Executive Programs among the top sixty in the world. WBS is

accredited by the Council on Higher Education, the Association

of MBAs and the US-based Graduate Management Admissions

Council Program.

WBS global reach and reputation is demonstrated by the several

students exchange programs and collaborative partnerships it

has with reputed international graduate business programs such

as Duke Universitys Fuqua School of Business, London Business

School, UCLAs Anderson School of Management, Wharton School,

to name a few. It is one of the very select Business Schools inAfrica that belong to the Partnership in International Management

(PIM), which is populated by the major graduate business programs

of the world e.g. Wharton School, Kelly School, Babson College,

University of Michigan, University of Thunderbird, University

of Western Ontario, York University, Tel Aviv University, Kuwait

University, Ponticia Universidad Catolica de Chile, Chinese

University of Hong-Kong, Keio University, Yonsei University and

Thammasat University.

TOP-RATE AND RELEVANT QUALITY FACULTY

Consistent with Master in Finance & Investments mission of

quality, contemporary and relevant Finance education, its faculty

members hold graduate degrees (particularly Ph.D.s) from

top international Business and Economics programs such as

Cambridge (UK), Craneld (UK), London and Queens (UK), Saint

Louis (USA), New School (USA), Witwatersrand (South Africa), etc.

The Master in Finance & Investmentsmission is quality, contemporary andrelevant Finance education.

Management works in the system;

leadership works on the system.Stephen R. Covey


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backgrounds in numeracy would need some basic mathematicaltraining or brushing-up. A meaningful work experience in thesphere of nance and/or management would be a plus, but not arequirement.

The program is expected to be completed within a maximum oftwelve months, including the completion of a program thesis.The programs time-tabling is based on a block-release formula.

The program is comprised of three parts: core courses, electivecourses and a program thesis; with a total of eight units of coursesand the program thesis. The multiplicity of electives groupedunder three streams of Finance is designed to permit students todecide upfront (from the get-go) the areas of Finance they seekto slant their expertise towards. Further, the numerous electivesenhance the seamlessness of our students ability to take coursesfrom our collaborative partners. The program is organized ascomprising the three following components:

A. CORE COURSES (4):

1. Corporate Finance & Financial Statement Analysis2. Investments3. Finance Macro-environment Analysis (comprised of special

topics in global, macroeconomic and political environments)4. Applied Financial Econometrics (a mlange of multivariate

analysis & time-series specic to nancial markets)To be completed in the 1st quarter (January-March)

B. ELECTIVE COURSES (4):

1. Four from the pool of available electives (with 1-2 areas ofspecialization in view), to be completed within the 2nd quarter(April-June) and 4th quarter (October-December)

C. PROGRAM THESIS:

1. This thesis portion commences by the beginning of the 2ndquarter of the program (April) and completed by December.The list of possible elective courses on offer at both WBS andpartnering international graduate institutions is presentedbelow, and arranged under three streams of specialization.

CORPORATE FINANCE STREAM

Advanced Corporate Finance & Corporate Governance Project Finance & Capital Budgeting Analysis Advanced Financial Statement Analysis & Disclosures

BANKING AND CAPITAL MARKETS STREAM

Banking Operations & Financial Institutions Management Investment Banking & Primary Markets Development & Entrepreneurial Finance International Finance and Globalization Emerging Markets & Financial Market Development

INVESTMENTS AND FINANCIAL ENGINEERING STREAM

Trading and Securities Selection Asset Management & Portfolio Formation Derivatives, Debt and Structured Contracts Real-estate Markets & Mortgage Finance Models, Forecasting and Risk Management

STRUCTURE AND DETAILS OF THE MASTER IN FINANCE &INVESTMENT

Taking into consideration (a) core course requirement for solid

nance expertise, (b) special nance expertise needs of the

emerging market and global environments, and (c) a relatively

seamless students exchange or collaboration with current

and potential partnering institutions, the Master in Finance &

Investment at WBS, is structured as follows.

It is designed for individuals with relevant undergraduate degrees

(in e.g. business, economics, engineering, mathematics, statistics

and law) who intend to pursue careers in specic areas of nance

either as practitioners or researchers. Individuals with limited

The WBS brand is unquestionably oneo the most recognized and sought at erin South Arica and Arica as a whole.It exemplies its mission statement osculpting global leaders.

DESCRIPTION OF CORE COURSES

Corporate Finance & Financial Statement Analysis:

This core course places nance within the context of the goal ofthe rm, and as such dwells on measuring the rms activitiesand performance in light of the rms strategy and goal.Topics such as nancial statement and analysis, accountingand economic prots, tax and retirement funds accounting,capital structure, agency issues, dividend policy, rmvaluation and valuation methods, are covered.

Investments:

It introduces the economics of how individuals and rmsmanage and grow their wealth (unconsumed earnings).Financial markets/institutions are discussed alongside theircorresponding investable securities, with emphases on thevaluation of debt securities, equity securities, and basicderivative securities. Overviews of background topics such ascapital asset pricing models, market efciencies (anomalies),and portfolio theory, are presented.

Finance Macro-environment Analysis:

This core course acknowledges that the existence and natureof nancial markets, rms nancing and investing strategiesare inuenced by the macroeconomic environment whetherdue to government policy or international trend/shocks.It dwells on interest rate determination, ination managementpolicy; tax/spending policy, exchange rate policy, and theirlinkages to nancial markets; and highlights stylized facts on

the relationship between business cycles and nancial markets.

Applied Financial Econometrics:

This course highlights the quantitative tools applicationsthat are commonplace in almost all nance areas. It introducesbasic data describing statistical techniques, modern regressiontechniques, and various aspects of time-series econometricsthat make sense of several nancial data of varyingfrequencies. A major emphasis is placed on practical exerciseswith computer packages of Excel, E-Views and/or Matlab.



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Wits continues to producegraduates who can play theirpart in our expanding economy.

DESCRIPTION OFELECTIVE COURSES

Corporate Finance Stream

Advanced Corporate Finance & Corporate Governance:

This course deepens some of the topics introduced in thecore corporate nance course, such as agency theory and themarket for corporate control, models of corporate governanceand how rms can optimize the cost of capital (operation)within a given model. Special topics on capital and debtstructures of rms, ownership structure reorganization andnancial distress management (M&A, JV, Buy-out, etc).

Capital Budgeting & Project Finance:

This course looks at how businesses and/or government unitspractically increase their value by effectively evaluating andselecting attractive long-term projects. It involves forecastingof cash ows and industry/macroeconomic environments,determination of risk proles and corresponding costof capital. These budgeting tools, alongside risk-sharingarrangements, are then used to understand how rms and

government nance manage large scale, long-live projectsthat would ordinarily be difcult for one entity to handleexclusively. Case studies are generously employed.

Advanced Financial Statement Analysis & Disclosures:

Basic knowledge on how rms measure and report theiractivities and performance is expanded in ways that equipsa nancial economist to extract the most from nancialreports and disclosures. Consequently, special topics innancial accounting, managerial accounting and informationeconomics are presented earnings management,consolidation and special items accounting, harmonizationof accounting standards, asset impairment, legislation ondisclosures, etc.

Banking and Capital Markets Stream

Banking Operations & Financial Institutions Management:

This course introduces more comprehensively the plethora


The quality o a leader isrefected in the standardsthey set or themselves.Ray Kroc


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of nancial institutions and markets that exist withinmost national connes, with a signicant emphasis on theeconomics of nancial intermediation and the dominance ofthrift institutions in the performance of that function. Morethan one-half of the course is devoted to understanding coreactivities of commercial banks including asset-liabilitymanagement, capital adequacy and liquidity management,regulation, consolidation and reform, banking systems,capital arbitrage behavior and credit risk management.

Investment Banking & Primary Markets:

This is a course on the economics of how publicly tradedrms and government units raise external funds for theiractivity. The forums by which these economic units accessexternal funds organized, private or over-the-countermarkets are introduced. Standard securities pricing andissuing procedures are presented, with signicant readingsand discussions on topics such as IPO, SEO, certication,conict of interest, auctions and cornering of markets, andregulation of investment banking and intermediation.

Development & Entrepreneurial Finance:

This course is largely eclectic and explorative, bringingtogether various areas of nance and development economicsin search of optimal ways of providing funding toentrepreneurs, particularly small and medium enterprises thatgenerally have limited or no access to traditional fundingsources. Emphasis is placed on special issues of venturecapital and private equity, and the ne xus betweennon-government credit institutions, government creditschemes and banks.

International Finance and Globalization:

This course puts nancial management analysis of rms in itsinternational context. The following major topics are coveredvia lectures and case presentations: international monetarysystems and global capital markets, currency valuedetermination and exchange risk management,multinationality, wealth effects of cross border M&A

and strategic alliances, globalization and risk diversicationpotentials.

Emerging Markets & Financial Market Development:

The structural and institutional differences between emergingand highly developed economies are shown to throw upsignicantly different nancial markets between these twonational market types. Opportunities and/or obstacles ofoperating in emerging markets are illustrated in topics suchas nancial market liberalization and market development,sovereign debt management, contagion, cross-borderinvestment ows and diversication, and emerging marketasset valuations.

Investments and Financial Engineering Stream

Trading and Securities Selection:

This course dwells on two main planks of the investmentssub-area: securities selection (with emphasis on equity,bond and currency), and the mechanics and procedures for

securities trading and settlement. Valuation techniques,markets microstructures, and trading models are furtheremphasized. A great deal of guest-lectureship is used here soas to enhance gaining knowledge of real-time trading practices.

Asset Management & Portfolio Formation:

It provides a broad coverage of popular investmentfunds equity funds, xed income funds, mutual funds,pension/retirement funds, and hedge funds with emphasison motivation, institutional underpinnings and managementof each of these funds. A signicant portion of the coursedwells on a hands-on portfolio formation and optimizationexercises that draws from various computational models.

Derivatives, Debt and Structured Contracts:

This course focuses on breaking down the conceptual andtheoretical underpinnings of contingency claims/contractsand their valuation models. Key topics here are options,futures, swaps; and how they are used as investment assets


With globalization, emerging marketshave become inexorably connected tothe dynamism o nancial marketsand their breath-taking pacedinnovations.

A big man is one whomakes us eel biggerwhen we are with him.

John C. Maxwell


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as well as portfolio hedge instruments. Special attention isalso given to models of xed income and structured contracts,with a highlight of their linkage to derivatives.

Real-estate Markets & Mortgage Finance

This course surveys the real-estate markets locally andinternationally, and highlights these markets increasinginuence on nancial markets and the macro-economy.It focuses on institutions that have been set up to addressthe special features of these huge mortgage (housing credit)markets, the mortgage loan based derivatives (securitization,pass-throughs, spvs, etc) and modeling and valuing of theseoften complex credit contracts.

Models, Forecasting and Risk Management:

This eclectic course combines topics from statistics, calculusand modeling, to provide more in-depth skills for

computational nancial analyses. It covers time-seriesanalysis including autocorrelation, causality, co-integration,and volatility forecasting. These time-series techniques arecombined with stochastic calculus to engineer contractswhich permits hedging of various kinds of nancial risks.

FEES

Detailed information will be found in the Fees Booklet, which isgiven to students when they register.

The cost of the MM is R 80 588.00

HOW TO APPLY AND OTHER RELEVANT INFORMATION

Application Process1. MM Application form from faculty ofce2. Brief synopsis or prole of your qualications, work background

and why you wish to do the qualication.

3. Transcript letter of your last qualication

Submission deadline for applications: 23 November 2009

Details of this road-map/application proccess, and the contactdetails of the programme manager are:

Rajeshree Naidoo (Raj)Programme ManagerTel no: +27 (0)11 717 3142Fax no: +27 (0)11 717 3514Email: [email protected]

Emerging markets must acquire therequisite capacity needed to understandthe workings o nancial markets.

The secret o a leader liesin the tests he has acedover the whole course ohis lie and the habit oaction he develops inmeeting those tests.

Gail Sheehy


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Wits Business School, University o

the Witwatersrand, 2 St. Davids Place,

Parktown, Johannesburg, South Arica,

Call Centre: 0861 000 (WBS) 927

Website: www.wbs.ac.za

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