ECONOMICS AND FINANCE (ENGLISH, PHD)
PhD	TR-NQF-HE: Level 8	QF-EHEA: Third Cycle	EQF-LLL: Level 8

Course Introduction and Application Information

Course Code	Course Name	Semester	Theoretical	Practical	Credit	ECTS
FIN6403	Theory of Finance	Fall Spring	3	0	3	10

This catalog is for information purposes. Course status is determined by the relevant department at the beginning of semester.

Basic information

Language of instruction:	English
Type of course:	Departmental Elective
Course Level:
Mode of Delivery:	Face to face
Course Coordinator :	Dr. Öğr. Üyesi DİLA ASFUROĞLU
Recommended Optional Program Components:	None
Course Objectives:	This course focuses on the theory of finance and modern financial techniques with a focus on finding and investing money based on the quantitative decission making. It introduce the most important concepts and analytical tools used in financial decision making, the structure and functioning of financial markets, the basic principles of valuation, and capital investment to create investment opportunities. The relationship between firm value and risk clarifies how firms should raise as well as investing capital including financial reporting.

Learning Outcomes

The students who have succeeded in this course;
1)Understand the structure and causes of changes in financial markets;
2)Evaluate the factors affecting stable markets of developed economies;
3)Interpret the causes of financial crises in developing countries;
4)Prepare financial planning and audit financial reports;
5)Understand the functioning and development trends of the national and global financial system;
6)Identify the main issues related to the information efficiency of financial markets;
7)Learn the prominent features of the functioning of financial markets in emerging economies and their differences from the markets of developed countries;
8)Learn finance, budget system, public finance, financial market; the main results of recent research in the field of finance theory; relations between the main segments of financial markets; efficient market hypothesis; types of financial intermediaries and their functions; understanding the effectiveness of financial transactions and determine the basic issues related to the information efficiency of financial markets.

Course Content

This course introduces the basic theoretical aspects of managerial finance related to finance theory and practice studies within the scope of the doctoral program.The course examine the valuation of financial assets, cost of capital and capital structure decisions. Capital budgeting, functions, structure as well as classification of financial markets, presentation of financial instruments according to the type of financial instruments, maturity instruments, method, and organization method of transactions. Examining intermediaries in the international financial market, securities market and market components theoretical and practical aspect, as well as market efficiency, trading and valuation in financial markets including capital asset pricing model, efficient market theory, arbitrage and excess return, market efficiency and balance, investment. The timing of the decisions includes behavioral finance issues.

Weekly Detailed Course Contents

Week	Subject	Related Preparation
1)	Introduction to finance theory:
2)	Financial system, financial markets, modern finance theory
3)	Cash flow analysis
4)	Security analysis and valuation including bonds and stocks
5)	Firm value or the entire value of the enterprise, taking into account the capital structure.
6)	Capital budgeting decisions under uncertainty and risk, optimal replacement timing
7)	Capital budgeting decisions under uncertainty and risk, optimal replacement timing
8)	Midterm Exam
9)	Cost of capital, cost of induvidual sources of capital, and weighted average cost of capital.
10)	Capital structure decisions theoretical and applied approach
11)	Working capital management, Financial planning and budgeting
12)	Financial crises and risk management
13)	Selected topics in finance
14)	International finance and monetary policy

Sources

Course Notes / Textbooks:	J. C. Van Horne and J. M. Wachowicz, Fundamentals of financial management, Prentice Hall. Berk, N., Corporate finance, Lecture notes, İstanbul, 2022. Essential of Corporate Finance, Ross- Westerfield- Jordan, McGraw Hill Irwin publication. J. Berk and P. DeMarzo, Corporate Finance - The core, Pearson publication
References:	-N. Berk, Finansal Yönetim, 13. Baskı, Istanbul, 2020. Wall Street Journal, Financial Times, New York Times, Economist,and other financial press.

Evaluation System

Semester Requirements	Number of Activities	Level of Contribution
Midterms	1	% 50
Final	1	% 50
Total		% 100
PERCENTAGE OF SEMESTER WORK		% 50
PERCENTAGE OF FINAL WORK		% 50
Total		% 100

Contribution of Learning Outcomes to Programme Outcomes

No Effect	1 Lowest	2 Low	3 Average	4 High	5 Highest

	Program Outcomes	Level of Contribution
1)	Being able to evaluate and use new knowledge in Economics and Finance with a systematic approach.
1)	Being able to develop new thoughts and methods in Economics and Finance by using high-level mental processes such as creative and critical thinking, problem solving and decision making.
1)	Being able to contribute to the progress in Economics and Finance by independently carrying out an original work that brings innovation to the field, develops a new idea, method, design and/or application or applies a known idea, method, design and/or application to a different field.
1)	Being able to develop and deepen current and advanced knowledge in the field with original thought and/or research at the level of expertise based on Master's qualifications, and reach original definitions that will bring innovation to the field.
1)	Being able to critically examine and develop social relations and the norms that guide these relations, and to manage actions to change them when necessary.
1)	Being able to contribute to the process of becoming an information society and maintaining it by introducing scientific, technological, social or cultural advances in the fields of Economics and Finance.
2)	Being able to comprehend the interdisciplinary interaction that Economics and Finance are related to; and to reach original results by using knowledge that requires expertise in analyzing, synthesizing and evaluating new and complex ideas.
2)	Being able to develop a new idea, method, design and/or application that brings innovation to the fields of Economics and Finance, or to apply a known idea, method, design and/or application to a different field, to investigate, comprehend, design, adapt and apply an original subject.
2)	Being able to defend their original views in the discussion of the issues in the field with experts and to establish an effective communication showing their competence in the field.
2)	Being able to interact functionally by using strategic decision making processes in solving problems related to Economics and Finance.
2)	Being able to expand the limits of knowledge in the field by publishing at least one scientific article on Economics and Finance in national and/or international peer-reviewed journals and/or by producing or interpreting an original work.
3)	Being able to contribute to the solution of social, scientific, cultural and ethical problems encountered in Economics and Finance and to support the development of these values.
3)	Being able to critically analyze, synthesize and evaluate new and complex ideas.
3)	Being able to communicate and discuss at an advanced level in written, oral and visual English using at least the European Language Portfolio C1 General Level.
3)	Ability to lead in environments that require the resolution of unique and interdisciplinary problems.
4)	Gaining high-level skills in using research methods in studies related to Economics and Finance.