Course Title:

Financial Management for Decision

Making & Research
Course Code: PHDM 925
Credit Units:
04

P/S

SW/
FW
4

TOTAL
CREDI
T
UNITS
4

Level: Doctoral Programs

Course Objectives:
It seeks to provide the students with useful quantitative tools to understand and produce frontier research in
finance.
Application of tools to advanced topics in both corporate finance and asset pricing.
To orient the students regarding Financial Decision making process and understanding the risk
return portfolio..
In this course, we will survey the evidence and use Financial Aspects to guide alternative theories of
financial markets with an eye towards identifying frontiers and opportunities for new research
Pre-requisites:
The student should have credited the following courses Quantitative Techniques & Statistics,
Basic knowledge of Financial Management & Security Analysis.
Student Learning Outcomes:
Upon successful completion of this course Research scholars will be
Able to complete research work with application of more statistical and Financial tools.
Know how to analyze, as well as compare and contrast finance theories that support
Financial decision making.
Able to appreciate the behavioural anomalies pertinent in the stock markets.
Course Contents/Syllabus:
Module I: Financial Strategy and Planning
Strategic approach to Financial Management, Economic Environment of Business,
Concept of Strategic financial Management, Financial Forecasting, Techniques of
Financial Forecasting, External Fund Requirement, Internal Growth Rate, Sustainable
Growth Rate, Financial Planning Process, Steps in decision making process.
Module II : Risk Analysis in Capital Budgeting
Decision making under risk and uncertainty, Techniques for decision Making under Risk
and Uncertainties, Probability analysis, Sensitivity Analysis, Risk Measurement,
Projected Beta, Decision Tree Analysis, Best and Worst Estimates, Values of Perfect
Information. Risk Adjusted discount rate and certainty equivalent, Risk Measurement and

Weightage (%)
20%

30%

Management.
Module III : Security Analysis and Stock Market Behaviour
Stock Exchanges in India, Stock Market Indices, Fundamental and Technical Analysis,
Theories of Stock Market Behaviour- Fisher Blacks Noise Theory, Random Walk
Hypothesis, Efficient Market Hypothesis, Forms of Stock Market Efficiency, Individual
Returns and EMH, Fair Game Concept.
Module IV: Financial Services and Institutions
Financial Intermediation, New Concepts in Financing, Banking services and Merchant
Banking, Credit rating Agencies, Depositories and Mutual Funds, Ratios for evaluation of
Mutual Fund Performance
Module V: Investment Management and Risk-Return Analysis
Investment Strategies- Asset allocation, Constant Proportions, Rupee cost averaging,
Value cost averaging, Matrix approach, return and Risk of Single Asset, Return and
Risk of Portfolio, CAPM concept

25%

15%

10%

Pedagogy for Course Delivery:

The pedagogy for the course should include regular follow-up of the stock market indices, co-relational study of the
market movements and market sentiments along with the media support garnered, major losers and major gainers
evaluation vis--vis their fundamental values. Upon building a sound theoretical framework, different behavioral
applications and relevant research papers should be introduced in each section of the course. Lectures should be
discussion oriented and on some occasions supported by case analyses to emphasize the practical aspects of the
issues covered.
Assessment/ Examination Scheme:
Theory Assessment (L&T):
Continuous Assessment/Internal Assessment
Components (Drop
down)
Weightage (%)

CT

C`

End Term
Examination
EE

15

70

Field Work: Internal and External

Internal and External
Components

Synopsis
(internal Marks)

Review of
Literature
(internal
Marks)

Presentation

Viva Voce

(External Marks)

(External
Marks)

Weight age
15

15

Text & References:

Ravi M. Kishore (2013) Strategic Financial Management, Taxmanns
Kapil,( 2013) Financial Management, Pearson
Van Horne, Dhamija (2014), Financial Management and Policy, Pearson
De la Grandville (2013) Bond Pricing and Portfolio Analysis, PHI

35

35

 Scott Plous, (1993) The Psychology of Judgment and Decision Making, McGraw Hill.
Daniel Kahneman and Amos Tversky (eds.) (2000) Choices, Values and Frames; New York: Russell Sage
Foundation, Cambridge UK: New York, Cambridge University Press.
Richard Thaler, (1991) Quasi-Rational Economics, Russell Sage Foundation Press.
Andrei Shleifer, (2000), Inefficient Markets, Oxford: New York: Oxford University Press.
HershShefrin, (2000) Beyond Greed and Fear, Harvard Business School Press.
Daniel Kahneman, Paul Slovic, and Amos Tversky (eds.) (1982) Judgment under Uncertainty: Heuristics
and biases, Oxford; New York: Oxford University Press.
Any other Study Material:
The Journal of Finance, Financial Markets, Behavioural Finance, and Financial Modeling