FACULTY BEHAVIOURAL, MANAGEMENT AND SOCIAL SCIENCES (BMS) FINANCE & ACCOUNTING

FACULTY BEHAVIOURAL, MANAGEMENT AND SOCIAL SCIENCES (BMS) FINANCE & ACCOUNTING

2 BMS - FINANCE & ACCOUNTING 3 RESEARCH GROUP Sijia Yan BSc IBA graduate I think Finance is important to all businesses. Start-ups need to know how to raise capital efficiently. A global business needs to understand the impact of exchange rate movements. To me Accounting and Finance are two very practical and useful subjects. Learning these subjects helps me to become an analytical and critically thinking person. The Department of Finance and Accounting is a part of the Business Administration group at the University of Twente. We are a small but cohesive team of international academics committed to deliver high quality cross-disciplinary education and research. Our goal is to contribute towards a learning platform for business, science and engineering students and professionals that allows entrepreneurial activities and innovative practices to benefit from cutting-edge knowledge on financial management. The Department places high priority in performing scientific research related to financial policies of firms and organizations. Our research focus is on established firms as well as technology-based businesses including start-ups, small and medium-sized enterprises operating primarily in manufacturing, energy, health and financial sectors. Emphasis is placed on undertaking research projects related to entrepreneurial and innovative practices of firms and UT focused areas, applying academic insights into real-life financial management issues, and fostering critical thinking. The research of the Department corresponds to the broad mission of business administration at the University of Twente, i.e. to understand, educate and support value creation among knowledge-intensive businesses by integrating high-tech environment with human talent (HIGH TECH HUMAN TOUCH). In this way, the Department contributes towards making organizations more innovative and entrepreneurial so that their productivity, efficiency and performance can increase significantly.

4 BMS - FINANCE & ACCOUNTING 5 COURSES WE TEACH FINANCIAL MANAGEMENT BACHELOR / MINOR COURSES - FINANCE, ACCOUNTING & INFORMATION SYSTEM - FINANCING ENTREPRENEURIAL START-UPS AND INNOVATIVE FIRMS - CHANGE MANAGEMENT, LEADERSHIP, CORPORATE GOVERNANCE & BUSINESS ETHICS - HEALTH ECONOMICS AND ACCOUNTING (PRE) MASTER COURSES - ACCOUNTING AND FINANCE - ACCOUNTING AND FINANCIAL MANAGEMENT - CORPORATE FINANCE - ENTREPRENEURIAL FINANCE - RISK MANAGEMENT THE FINANCIAL MANAGEMENT SPECIALIZATION TRACK IS A PART OF THE MSC PROGRAMME IN BUSINESS ADMINISTRATION. WE FOCUS ON FINANCIAL DECISION-MAKING, HOW FIRMS ORGANIZE AND IMPROVE THEIR FINANCIAL PROCESSES TO CREATE VALUE IN THE WORLD OF CONTEMPORARY ECONOMIC AND TECHNOLOGICAL DEVELOPMENTS. YOU WILL LEARN THE LATEST FINANCIAL INNOVATIONS AND REAL-LIFE PRACTICES. WHAT IS FINANCIAL MANAGEMENT? Every organization is faced with complex financial issues. These concern not just preparing the annual accounts and reports, but also creating value by raising funds in financial markets and investing these funds on new assets. How financial performance is measured and assessed? How are start-ups different from other firms? What are the effects of new financial innovations like e-finance, crowd funding? Which actions firms can take to manage diverse categories of risks? You will learn how to deal with these and many other questions. Overall, the specialization is about: - Corporate finance - Entrepreneurial Finance - Investments - Business valuation - Financial disclosures - Mergers, acquisitions & restructurings - Risk management - Corporate governance - Security & credit analysis - Financial markets and institutions WHY AT THE UT? The Financial Management specialization at the University of Twente is unique because of the entrepreneurial and technological focus of our university. While studying Financial Management at the most entrepreneurial university of Europe, you will learn from the success stories behind financing and investing. You will understand how the latest financial technology is used for example in forecasting changes in cash flows and risk management with financial derivatives. Creating value, fostering growth, staying financially and technologically innovative: these are examples of the boundless knowledge potential we offer to aspiring students coming from diverse background. Moreover, by adopting a multi-disciplinary perspective of finance, this specialization distinctively features the exciting interplay of academic rigor, practical knowledge, and societal & global trends. FOCUS The Financial Management specialization focuses on both the theory and the practice of financial decision-making. You will become thoroughly conversant with the modern principles of corporate finance & investments, and the key challenges faced by finance managers. You will also remain up-to-date with the contemporary economic and technological developments that are shaping financial management practices of small businesses, large corporations as well as the financial industry. Guest speakers are regularly invited to share their views and insights with our students. Such is the educational experience that our graduates can perform consistently at the top echelon.

6 BMS - FINANCE & ACCOUNTING 7 MSC PROGRAMME IN BUSINESS ADMINISTRATION STRUCTURE & COURSES WHAT WILL YOU LEARN? Important topics studied in Financial Management specialization include: - Corporate financial policies; - Business valuation methods; - Financial aspects of business entrepreneurship; - Motives and effects of changes in capital structure and dividend payments; - Causes and consequences of mergers, acquisitions and restructurings; - Corporate governance mechanisms; - Investment and financial analysis techniques; - International financial management. The multiple courses that we offer will help you to become aware of the impact of financial management decisions on firm value / corporate performance and their implications for risk management and corporate governance. Our courses also cover specific topics like financing techniques of start-ups and entrepreneurial ventures, contemporary changes in international financial environment and emerging markets. In all courses, we place great emphasis on applying scientific insights into real-life financial management issues and fostering logical & critical thinking. The knowledge and skills you learn will help you to gain clarity and confidence in independently undertaking the research project for your master thesis. CAREER After successfully completing the Financial Management specialization you will have a large variety of attractive career opportunities in small and medium-sized enterprises, large and multinational companies, financial institutions and publicsector organizations. Each year, our graduates receive exciting job offers to work in: - Finance / Treasury / Accounting Departments - IT and Business Development Departments - Research and Consultancy organizations Examples of these jobs are: Account manager, Investment manager, Risk manager, Portfolio manager, Business consultant, Business analyst. Jeroen Meijer MSc BA graduate To me, Financial Management provides the necessary insights to successfully find & secure new investment opportunities in a fast changing economic & technological environment. Knowledge about risk and return is indispensable for every successful corporate manager PROGRAMME STRUCTURE The specialization consists of four obligatory courses (20EC) and one elective course (5EC). The track will be completed with a Master Thesis and Internship (35EC). The internship in a company (10EC) is optional. When an internship is undertaken, the student writes a Master Thesis of 25EC. But, when a student does not choose an internship, a Master Thesis of 35EC is conducted. COURSE DESCRIPTIONS These are the courses offered in 2015-2016. The courses in 2016-2017 and further are subject to change. Please check our website regularly. ACCOUNTING & FINANCIAL MANAGEMENT The course aims to build a bridge between accounting and finance disciplines by providing students advanced level knowledge and insights on a few important decision areas like financial analysis, company valuation, security and credit analysis. By the end of the course, students should be able to: - assess the different roles of financial statement information; - understand doing business analysis using financial statements; - identify and assess alternative firm performance measures; - identify and understand cash flow valuation theory; and - apply valuation concepts on security and credit analysis. The course helps students to learn how to use financial statement information to assess a firm s financial performance and value. It familiarizes students in evaluating the degree to which the accounting principles followed by a firm captures its underlying business reality. In this course, students are also required to work in a team to prepare a report on a company s value based on its financial statements and other publicly available information.

8 BMS - FINANCE & ACCOUNTING 9 CORPORATE FINANCE RISK MANAGEMENT The objective of the course is to provide students with an in-depth understanding of a few corporate financial management decisions. Upon completion of this course, students are able to: - explain the relationship between risk and return, and the principle of modern portfolio theory; - learn how to estimate a firm s cost of capital and when to use (or not to use) it; - distinguish between different forms of efficient capital markets and assess empirical evidence; - evaluate alternative methods (such as equity, debt) of raising capital and the significance of capital structure and dividend policy of companies; and - analyze the causes and effects of mergers and acquisitions. ENTREPRENEURIAL FINANCE The course helps students to learn the modern principles of corporate finance and their application to important financial management decisions. In particular, the course will provide an understanding of relevant theoretical concepts underlying selected financing decisions of firms, and how these decisions impact firm value. In this course, students gain a fundamental understanding of valuation of financial assets and various financial risks faced by national and international companies. They are also prepared to make an informed decision in managing different types of financial risks. Upon completion of this course, students are able to: - describe the concept of risk management and explain the hedging motives of firms; - apply the fundamental models in valuing financial assets (e.g. stocks, bonds and financial derivatives); - identify various financial risks (e.g. interest rate risk, foreign exchange risk) faced by international companies and analyze how these risks can be managed; - demonstrate a good knowledge of financial derivatives (e.g. futures, forwards, swaps and options) and the organization of derivatives markets; and - analyze how to use financial derivatives for risk management. This course introduces various financial risks faced by international firms and the strategies used to manage these risks. First, the concept of risk management is introduced and hedging motives are discussed. Second, different models of valuing financial assets provide an indepth understanding of risk-return trade-off, and help to value financial derivatives. In the end, various usages of financial derivatives are explained in hedging diverse risks. The course provide students with the essential theories, knowledge and skills to adequately make financial decisions of entrepreneurial firms. Upon completion of this course, students are able to: - Understand and assess the major components of a business plan; - Identify the pros and cons of different legal and other aspects facing venture enterprises; - Identify and assess factors relevant for a (successful) venture; - Assess the relevance and meaning of various sources of financing of new business ventures; - Understand and apply venture valuation principles; - Describe how a successful entrepreneur can harvest or exit the venture; and - Learn how to resolve financial distress situations. This course helps students to learn topics like defining enterprise opportunities, legal & organizational matters, preparing a business plan, assessing venture s (financial) performance, valuing business ventures, structuring financing, exit & turnaround strategies.

10 BMS - FINANCE & ACCOUNTING 11 BSC PROGRAMME IN INTERNATIONAL BUSINESS ADMINISTRATION STRUCTURE & COURSES PROGRAMME STRUCTURE In the bachelor program of International Business Administration, the Department of Finance and Accounting delivers teaching in one obligatory module (15EC) in the first year, one elective module (15EC) in the second year, and one obligatory module (Change Management, Leadership, Corporate Governance & Business Ethics, 15EC) in the third year. In addition, the Department contributes to a module of Bachelor Health Sciences programme: Health Economics and Accounting (15EC). MODULE DESCRIPTIONS These are the modules offered in 2015-2016. The modules in 2016-2017 and further are subject to change. Please check our website regularly. FINANCE, ACCOUNTING & INFORMATION SYSTEM This module covers three knowledge domains: Finance, Accounting, and information systems, delivered jointly by the Department of Finance and Accounting and the Department of Industrial Engineering and Business Information Systems. Upon completion of this course, students are able to, for example: - describe scope of financial management and the interaction between the firm and its (international) financial environment; - apply the concept of the time value of money in valuing the two key financial securities: stocks and bonds; - make and evaluate capital investment decisions; - build a firm s balance sheet, income statement, cash flow statement while taking into account various principles and concepts (wealth, inventory, accrual accounting, cash flow, costs, etc.); and interpret these statements based on different forms of analysis; - explain processes related to planning, control and budgeting; and investigate deviations between plan and actual; - apply different cost allocation methods to determine product costs, and understand the effect on inventory and net income; This module teaches students to develop and build an information system based on financial and non-financial information, to analyze the information based on internationally accepted concepts and methods, and to make sound financial management decisions. FINANCING ENTREPRENEURIAL START-UPS AND INNOVATIVE FIRMS This module is an elective module that accommodates students interest in getting in-depth education in the financial management of entrepreneurial start-ups and innovative firms. Upon completion of this course, students will be able to: - explain different ways in which entrepreneurial start-ups, small- & medium-sized enterprises and multinational firms organize and manage major financial management functions; - apply different valuation techniques, the modern portfolio theory and asset pricing models to financial assets like stocks, bonds and options; - undertake analysis to make asset allocation decision, design investment portfolios and financial models, and evaluate portfolio / investment performance; - analyze problems related to financial planning, capital structure, dividends & share repurchases, mergers & acquisitions, restructuring and risk management; and discuss the impact of these decisions on firm performance / value; - distinguish between the operations of purely domestic and multinational firms, and explain the differences related to capital budgeting, capital structure, cash and risk management in global context; and - describe how investors and firms deal with new financial innovation, financial technology, e-finance, and new trends in financing and investment This module covers major financial management decisions by combining theoretical concepts with institutional contexts and real-life examples. Students will deepen their understanding of financial statements and how firms interact with diverse categories of investors and capital markets. They will learn how financial decisions are affected by global, economic, social and technological considerations. Specific focus is given to issues related to financial innovation, financial technology, e-finance, behavioural finance, and the evolving societal trends such as crowd funding, socially responsible investments and emerging markets investment. Damian Tomschik BSc IBA graduate Nowadays, Finance & Accounting play a fundamental role in the management of any business due to the wide variety of investment opportunities and the continuous development of debt/equity markets. I highly recommend this specialization as it discusses various relevant topics

12 BMS - FINANCE & ACCOUNTING 13 BSC PROGRAMME IN HEALTH SCIENCES (PRE) MASTER IN BA FINANCIAL & MANAGEMENT ACCOUNTING This course is one of the subjects which contribute to the module: Health Economics and Accounting. In this course, students gain a fundamental understanding to financial and management accounting. It is aimed at providing a broad understanding of the theory and practice of financial accounting, management accounting and financial management. The course does not focus on the technical aspects, but rather examines the basic principles and underlying concepts, and the ways in which accounting statements and financial information can be used to improve the quality of decision making. To support this practical approach, there are, numerous illustrative extracts with commentary from company reports, survey data and other sources. Students are able to: - understand how to measure the financial position and performance of a health care organization, and analyze and interpret financial statements; - understand (and apply) different cost allocation methods and determine service/product costs, and understand their effects on the balance sheet and profit-and-loss statement; - apply different approaches to prepare decision making; - explain processes related to planning, control and budgeting, and interpret differences between plan and actual; and, - discuss the strengths and weaknesses of various techniques for dealing with risk in investment appraisal. This course will clarify the basics of financial and management accounting. Students will learn how to analyze healthcare issues from financial and management perspectives, and use their analyses to improve patient oriented efficient healthcare for the future. The use of real world case studies allows students to master the techniques rather than simply memorize them. Eva Warnaar MSc BA graduate Finance to me is the basis for business administration, because whatever you want to do or achieve in a firm, you always need to be able to understand a balance sheet. Corporate finance is the core for business! ACCOUNTING AND FINANCE The course is part of the pre-master programme in Business Administration. Students will obtain a sufficient level of knowledge on accounting and finance issues. Upon completion of this course, students are able to: - understand how to measure the financial position and performance of a firm, and analyze and interpret financial statements; - understand (and apply) different cost allocation methods and determine service/product costs, and understand their effects on the balance sheet and profit-and-loss statement; - explain processes related to planning, control and budgeting, and interpret differences between plan and actual; and - understand the advantages and disadvantages of different sources of financing, explain how financing is attracted and the role of the stock exchange. This course provides an introduction to accounting and finance. You will learn different concepts from two important interacting areas of business administration: accounting and finance. You will learn how company executives can use financial information for reporting and business decision-making. Furthermore, you will sharpen your accounting and financial analysis skills by working on assignments.

14 BMS - FINANCE & ACCOUNTING 15 STAFF Prof. dr. Rezaul Kabir - Corporate finance / financial management - Corporate risk management - Corporate governance - Capital markets & investments - Law & finance Rez Kabir holds a PhD degree in Finance and Master degrees in Economics and Business Administration. He has taught undergraduate and graduate courses at universities in Antwerp, Beijing, Liege, Maastricht, New York, Stirling and Tilburg. His research is primarily multi-disciplinary, empirical and policy-oriented. Many articles written by him have appeared in national and international books and peer-reviewed journals. Dr. Xiaohong Huang - Investment performance evaluation - Corporate finance and emerging markets - Pension plan Xiaohong Huang holds a PhD degree in Finance. Her research interests span from capital market investment to corporate financial management. She is keen on attracting ambitious students for joint research projects. In teaching she tries to help students orient themselves in the complex financial world by equipping them with fundamental finance theories and techniques. Dr. Samy Essa - Accounting - Management accounting & control - Risk management Ir. Henk Kroon - Financial management - Business valuation Samy Essa holds a PhD degree in Management Accounting. He has wide-ranging experience in international education and research. His research is primarily focused on the negotiations between buyers and suppliers, and in particular how accounting information and controls affect negotiators behaviors, trust building and performance outcomes in uncertain setting. Henk Kroon is a part-time lecturer with wide-ranging professional and consulting experience. He primarily teaches the essentials of business management in entrepreneurial context. He makes accounting and finance interesting to learn. Boring numbers and ratios come to life after just one lecture of Henk. Being an entrepreneur himself, he knows what he is talking about from all angles. From left to right: Hanh Thai Minh, Afsheen Abrar, Dr. Samy Essa, Dr. Xiaohong Huang, Ir. Henk Kroon, Dr. Siraj Zubair, Prof. dr. Rezaul Kabir and Taufiq Arifin. Dr. Linda Sleddens Dr. Siraj Zubair Normaziah Binti Mohd Taufiq Arifin - Risk management - Financial markets & institutions - Banking - SME / Entrepreneurial finance - Corporate finance - Corporate disclosure and investor relations - Corporate risk management - Corporate finance - Capital market research - Financial accounting - Corporate governance - Capital market research Linda Sleddens studied business administration and obtained a PhD degree doing research on credit risk management. Currently, she is Head of Economic Capital & Integrated Risk Reporting and Analytics at SNS Bank, Utrecht. She has extensive professional experience in managing national and international teams at various organizations. By giving guest lectures at UT, Linda brings additional views from practitioners perspectives. Hanh Thai Minh - Corporate social responsibility disclosures - Accounting standards and Auditing - E-learning Saba Ahmad - Microfinance - Development finance Afsheen Abrar - Microfinance - Banking - Investment analysis

University of Twente Department of Finance and Accounting PO Box 217 7500 AE Enschede The Netherlands T +31 (0)53 489 4512 / 4533 http://www.utwente.nl/en/organization/ www.utwente.nl/bms/fa/