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Module Title |
Investment Banking |
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| Module Code |
25-5022-00S |
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Semester of Delivery |
5 |
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Mandatory/Elective/Option |
Elective |
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Level |
5 |
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Credit Points |
20 |
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Assessment Mode Weighting |
Coursework |
100% |
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Examination |
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Pre-requisites |
None | |
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Co-requisites |
None | |
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Class Contact Hours |
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Average Weekly |
2.5 |
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Directed Learning |
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Average Weekly |
10 |
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Module Leader |
Mike Henderson |
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Sheffield Business School |
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Module Banding |
A |
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Approval Status |
Validated |
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This module will help students to understand what investment banks are and how they differ from other financial institutions. It will explore how investment banks provide services to their clients and what problems and issues arise in the investment banking business. It will be of interest to anyone considering working in investment banking or in financial management. Key themes of the module are conflicts of interest in investment banking and the changing nature of investment banks. Students will develop skills in using academic literature from a range of disciplines in order to support their arguments.
Summary of Aims
1 To provide students with background knowledge of the investment banking industry in order to enable them to research further into key issues such as the factors driving change in the industry and the particular management problems which investment banks face
2 To help students to think through ethical issues arising from conflicts of interest
3 To encourage students to draw on academic literature in analysing situations
Anticipated Learning Outcomes
On completion of the module students should be able to:-
1 Assess the role of an investment bank in acting on behalf of a client in a specific situation
2 Evaluate a specific economy as a suitable market for an investment bank, drawing on knowledge of a range of investment banking services
3 Describe and account for change in the investment banking sector
4 Demonstrate how conflicts of interest may lead to ethical dilemmas in investment banks
5 Assess the factors which make management of investment banks complex and problematic
6 Use appropriate terminology relating to the industry
7 Use appropriate academic referencing and bibliographies in writing about investment banking
Assessment and Feedback Strategy
Assessment will consist of two major assignments, and a time-constrained test.
Feedback on the assignments will be provided in four ways:-
1 General comments about the overall approach adopted by students will be summarised and posted on the module conference site as soon as the process of marking is completed.
2 Students will be given an individual feedback sheet for each of the major assignments. The format of this sheet will be available beforehand spelling out the assessment criteria that will be applied and the levels of achievement associated with different levels of performance - see accompanying example grids.
3 Oral feedback at the class session will reinforce learning relating to the issues covered in the conference site.
4 Students will be invited to speak to the module tutors if the information provided in the first three ways is too little or is unclear. Time will be made available at the end of class sessions for this purpose.
Teaching and Learning Strategy and Methods
The major learning resources for the module will be a range of websites and recommended readings which will help the students to tackle the two major assignments as indicated above. Support in preparing for the assessed work will include class sessions introducing the themes of the module, issues faced by investment banks and some of the major products. Feedback from the assignment work will be a key element of the learning process and, as indicated, will take a variety of forms.
Indicative Content
Each year the Module Guide will contain a revised list of indicative texts and websites which are suitable to support the learner.
Augar P (2000) The death of gentlemanly capitalism: the rise and fall of London's investment banks, London, Penguin
Gardener EPM and Molyneux P (eds)(1996 - 2nd edition) (1st edition - Scott-
Quinn B) Investment banking: theory and practice, London , Euromoney
Geisst C R (1995) Investment banking in the financial system, Englewood Cliffs, Prentice Hall
Jordan B D and Jordan S D (1996) "Salomon brothers and the May 1991 Treasury auction: Analysis of a market corner", Journal of Banking and Finance, Vol 20, pp 25 - 40
Kay W (ed) (1990) Clay and Wheble's Modern Merchant Banking, Cambridge, Woodhead-Faulkner 332.66 KA
Kosnik R D and Shapiro D L (1997) "Agency conflicts between investment banks and corporate clients in merger and acquisition transactions: causes and remedies" Academy of Management Executive, Vol 11, No 1, pp 7 - 20
Liaw K T (1999) The business of investment banking, Chichester, John Wiley
Sudarsanam P S (1995) The essence of mergers and acquisitions, London, Prentice-Hall 338.83 SU
Module Assessment Criteria
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Learning Outcome |
Assessment Criterion |
Level descriptors |
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fail |
PASS |
2.2 |
2.1 |
First |
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Outcome 1 |
Assignment 1 |
Offered little or no assessment |
Description of either the theoretical role or the actual role |
Description of both the theoretical role and the actual role |
Assessment of how the actual role compares with the theoretical role |
Detailed assessment of the actual and theoretical roles, comparing and contrasting |
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Outcome 2 |
Assignment 2 |
Little or no assessment |
Assessment linked to some basic market data |
Good assessment using additional material such as comparisons |
Fuller evaluation of the economy |
Detailed evaluation with competitor comparisons, sources etc |
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Outcome 3 |
Assignment 2 and Test |
Confused explanation |
Explanation of basic issues |
Broad explanation |
Detailed explanation with examples |
Far-reaching explanation |
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Outcome 4 |
Assignment 1 and 2 |
Offered little or no reference to conflicts of interest |
Referred briefly to possible conflicts |
Described the nature of possible conflicts |
Linked conflicts to broader ethical concerns |
Placed conflicts and ethical issues in context |
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Outcome 5 |
Assignment 1 and 2 |
Little or no assessment |
A descriptive account of factors |
Appropriate evaluation of factors |
Well-organised evaluation of factors |
Extensive evaluation, putting issues into context |
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Outcome 6 |
Assignment 1 and 2 and Test |
Basic terms misused |
Basic terms used appropriately |
Careful, accurate use of standard terminology |
Wide range of terms used with few errors |
Full use of wide range of relevant terms with clear accurate explanations |
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Outcome 7 |
Assignment 1 and 2 |
Inaccurate bibliography and most sources not referenced |
Limited referencing and bibliography |
Good bibliography and most sources referenced appropriately |
Detailed well-presented bibliography and most sources referenced appropriately |
Detailed well-presented bibliography and detailed referencing |
The following sample assessment grids indicate the kinds of criteria which will be tested in covering the learning outcomes of the module.
Example 1 (based on an analysis of an investment banking deal)
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Mark: |
Below 35/40% |
40 - 49% |
50 - 59% |
60 - 69% |
70% and above |
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Outcome 1 Define the terms of the deal and the parties to it (Not formally a learning outcome for the module, but essential background) |
Little or no definition |
Provided a basic and limited definition |
Good definition incorporating most features |
Fuller definition with appropriate additional features including dates and amounts |
Detailed definition making all aspects clear to the reader |
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Outcome 2 Explain the rationale for the deal (Not formally a learning outcome for the module, but essential background) |
Offered little or no explanation |
A brief attempt to provide a reason |
A range of possible reasons suggested |
Fuller range of reasons, covering the broad environment, the industry and the company specific |
Full rationale with evidence supporting the reasons discussed |
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Outcome 3 Assess the general role of the investment bank (Learning outcome 1) |
Offered little or no discussion |
Description of either the theoretical role or the actual role |
Description of both the theoretical role and the actual role |
Assessment of how the actual role compares with the theoretical role |
Detailed assessment of the actual and theoretical roles, comparing and contrasting |
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Outcome 4 Assess how problems were overcome by the bank (Learning outcome 1) |
Offered little or no reference to problems |
Referred briefly of one or two basic problems |
Described actions taken because of specific problems |
Described solutions and linked these to the parties involved |
Considered the suitability of the types of solutions adopted |
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Outcome 5 Demonstrate how conflicts of interest might have arisen (Learning outcome 4 and 5) |
Offered little or no reference to conflicts of interest |
Referred briefly to possible conflicts |
Described the nature of possible conflicts |
Linked conflicts to broader ethical concerns |
Placed conflicts and ethical issues in context |
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Outcome 6 Use appropriate terminology relating to the industry (Learning outcome 6) |
Basic terms misused |
Basic terms used appropriately |
Careful, accurate use of standard terminology |
Wide range of terms used with few errors |
Full use of wide range of relevant terms with clear accurate explanations |
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Outcome 7 Use appropriate referencing and bibliography (Learning outcome 7) |
Inaccurate bibliography and most sources not referenced |
Limited referencing and bibliography |
Good bibliography and most sources referenced appropriately |
Detailed well-presented bibliography and most sources referenced appropriately |
Detailed well-presented bibliography and detailed referencing |
Example 2 (based on analysis of investment banking opportunities in an emerging market)
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Mark: |
Below 35/40% |
40 - 49% |
50 - 59% |
60 - 69% |
70% and above |
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Outcome 1 Evaluate a specific economy (Learning outcome 2) |
Little or no assessment |
Assessment linked to some basic market data |
Good assessment using additional material such as comparisons |
Fuller evaluation of the economy |
Detailed evaluation with competitor comparisons, sources etc |
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Outcome 2 Show how the market is changing (Learning outcome 3) |
Little consideration of change |
Examples used to show how change is occurring |
Examples showing changes and the reasons for them |
Evaluation of changes and their relevance to a specific investment bank |
Detailed evaluation of changes placed in a practical and theoretical context |
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Outcome 3 Demonstrate how conflicts of interest may arise (Learning outcome 4) |
Offered little or no reference to conflicts of interest |
Referred briefly to possible conflicts |
Described the nature of possible conflicts |
Linked conflicts to broader ethical concerns |
Placed conflicts and ethical issues in context
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Outcome 4 Assess the problems management will face in dealing with a new situation (Learning outcome 5) |
Little or no reference to management problems |
Referred briefly to management problems |
Described the nature of management problems |
Linked management problems to broader context |
Thorough analysis of possible management problems and how they might be handled |
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Outcome 5 Use appropriate terminology relating to the industry (Learning outcome 6) |
Basic terms misused |
Basic terms used appropriately |
Careful, accurate use of standard terminology |
Wide range of terms used with few errors |
Full use of wide range of relevant terms with clear accurate explanations |
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Outcome 6 Use appropriate referencing and bibliography (Learning outcome7) |
Inaccurate bibliography and most sources not referenced |
Limited referencing and bibliography |
Good bibliography and most sources referenced appropriately |
Detailed well-presented bibliography and most sources referenced appropriately |
Detailed well-presented bibliography and detailed referencing |