What do you study on the MSc Finance and Investment course at NUBS? 

The course includes a range of modules that are very useful when it comes to looking for a job. There are three core modules: fixed interest investment, derivative investment and capital markets analysis. Fixed income investment covers topics like the valuation of bonds, interest rate determination and how to use bonds to protect against interest rate changes. We also look at quantitative easing, which is quite topical these days. The derivative investment module covers all the different types of derivative structures (things like futures, options and forward contracts) and explores how they can be traded on the market. This includes looking at how derivatives can be used both to speculate and also to reduce risk by hedging. In capital markets analysis we study the capital asset pricing model, portfolio theory, rates of return and the valuation of companies. We have other courses as well beyond these core modules.

I teach financial reporting, an optional module designed for students who haven’t studied accountancy prior to doing the masters course. This module, along with others such as corporate financial strategy and quantitative techniques for finance, ensures that everyone has the complete set of basic financial skills required for the degree.  

What are the strengths of the Nottingham course?

First of all we have a very good mix of staff. A number of my colleagues have worked in the City before becoming academics. One acted as an internal consultant for the corporate finance and treasury departments of British Gas, another used to work for a Japanese investment bank, I myself used to work for two of the “big-four” accountancy firms. Some of my colleagues are leading researchers in finance as well. The skills that they have and the techniques that they use are cutting edge. We pass on this experience to our students.

The course itself is very forward looking in terms of the business areas it covers. We teach the latest thinking in areas such as corporate social responsibility. Some of my colleagues are also considering new modules such as Islamic finance because this is an increasingly important market area. 

It’s also a very multicultural learning environment. Often people don’t realise when they do a masters how much they learn by mixing with students from different backgrounds. I think this exposure to new ideas and cultures is very valuable for anyone wanting to work in multinational businesses.

What is financial reporting and why is it useful? 

Financial reporting refers to the preparation of financial statements – that means profit and loss accounts, balance sheets and cashflow statements. A P&L account shows how well the company has performed over the financial year. A balance sheet is a snapshot of what it has at the end of the year. The cashflow statement summarises where the cash has come from and what it has been spent on. All these statements provide financial information for use in economic decisions. So, for example, an investor who wants to know whether a company is doing well or not can analyse the statements to see whether the company’s financial position is sound. Or if you are lending money to a company you will use the statements to analyse its liquidity position. These skills are very useful for finance professionals. Many people just look at the profits but by studying financial reporting you learn to look beyond the numbers – you become aware of their strengths and limitations. If you’re able to interpret the statements you get a much better picture of what you’re really looking at.

What does the study of financial statements involve?

We start by going through the balance sheet items (for example: property, plant and equipment, research and development, goodwill etc.) and explain what all these items mean in detail. Then we focus on how to assess the strengths and weaknesses of the different numbers. We also look at accounting regulations and off-balance sheet finance – things you don’t see on the balance sheet but which you have to be aware of. 

We spend quite a bit of time learning how to analyse financial statements, looking at how you determine issues like company performance, the profitability ratio, the liquidity position, the gearing position, the capital structure issues and so on. 

Finally we will introduce the students to recent research articles to make sure they are aware of the latest thinking in key areas. 

Do these skills make students more employable?

Of course. Some of my graduate students go to accountancy firms, which offer very good career progression. You may go there for three years and train as a chartered accountant, which will use the skills you’ve learnt on the masters. Or they might begin a career at an investment bank. Some students choose to join the large consultancy firms. Others go and work for large corporate organisations. A masters degree in business gives you a lot of options.