Reading List – MSc Finance Suite

This reading list provides an indication of material that will be useful for study on the
programme and for preparing for it. Textbooks are subject to change by module lecturers.

We would encourage students to focus on the “Other Material” prior to commencing study at
Loughborough. We hope this will stimulate your interest in the subject area of Finance.
Textbooks can be studied during term time and should not be purchased before term begins.

Other Material:

Articles (and Book):

Dimson, E., and Mussavian, M. (1998). A brief history of market efficiency. European financial
management, 4(1), 91-103. http://m.e-m-h.org/DiMu98.pdf
Graham, J. R., and Harvey, C. R. (2001). The theory and practice of corporate finance: Evidence from
the field. Journal of financial economics, 60(2), 187-243. http://publicsde.regie-
energie.qc.ca/projets/72/DocPrj/R-3807-2012-C-ACIG-0059-DDR-REPDDR-2012_12_20.pdf
Stulz, R. (1996). Rethinking risk management. Journal of applied corporate finance, 9, 8-25.
http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.200.9948&rep=rep1&type=pdf
Subrahmanyam, A. (2008) Behavioural Finance: A review and synthesis
http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.127.9964&rep=rep1&type=pdf
Berenson, A. (2004) The Number: How America's Balance Sheet Lies Rocked the World's Financial
Markets. http://www.amazon.co.uk/Number-Americas-Balance-Financial-
Markets/dp/0743468090/ref=asap_bc?ie=UTF8
Websites:

Capital Ideas: http://www.chicagobooth.edu/capideas/

Economists view: http://economistsview.typepad.com/
Shiller site: http://www.project-syndicate.org/columnist/robert-j--shiller
FT.com Lex column: http://www.ft.com/lex

Textbooks:

The textbook recommendations are mainly selected as they are cover core material from semester 1
of the MSc Finance suite of programmes.

The module Principles of Finance gives an overview of classic topics in Finance and contains material
covering both Corporate Finance and Investments. The more Investments focused text by Bodie,
Kane and Marcus is a world-leading textbook and material in this book is also covered in the Portfolio
Management module in semester 2. The Corporate Finance oriented text by Brealey, Myers and Allen
is also amongst the biggest selling texts in the field; this book is also a recommended reading for the
later modules in Corporate Finance and Advanced Corporate Finance.

Bodie, Z., Kane, A., and Marcus, A. (2017), Investments, McGraw-Hill

https://www.amazon.co.uk/dp/toc/126008339X/

Brealey, R., Myers, S. and Allen, F. (2019), Principles of Corporate Finance, McGraw-Hill
https://www.amazon.co.uk/Principles-Corporate-Finance-Richard-Brealey/dp/1260565556
For the Financial Markets and Institutions module which examines the principle players in the markets
as well as the operation of these, the text by Valdez and Molyneux is suggested.

Valdez S and Molyneux, P. (2015). An Introduction to Global Financial Markets, Palgrave MacMillan
https://www.amazon.co.uk/Introduction-Global-Financial-Markets/dp/1137497556

For the Financial Reporting and Company Performance module, the suggested material is covered in
Jenny Maynard’s authoritative text. This provides insight into how financial information is prepared,
why this is and what the implications are for users.

Maynard, J., (2013), Financial Accounting, Reporting and Analysis. Oxford University Press.
http://www.amazon.co.uk/Financial-Accounting-Reporting-Analysis-Jennifer/dp/0199606056

Finally, for the Methods of Financial Data Analysis, the lecturer, Prof. Paul Turner has published his
own book that is used. This module looks at how Financial Data can be analysed using mathematical
and statistical techniques. If you are not confident in quantitative techniques, then please see the next
section which provides further example material to work through that will help prepare you for this
module and others on the programmme.

Turner, P. (2016). An Introduction to Mathematical and Quantitative Methods for Finance and
Economics, http://www.lulu.com/us/en/shop/paul-turner/an-introduction-to-mathematical-and-
quantitative-methods-for-finance-and-economics/paperback/product-22754966.html.

Maths: [Highly recommended for those who have not studied much Maths recently or
those who wish to practice their Maths before the start of the programme.]

Financial Maths / Algebra:

Mastering Financial Calculations – Steiner [Level: Introductory to Intermediate (lower)]

http://books.vipeople.com/assets/bdata/book/70177b6505642d6c863f0e70b0dff85c.pdf

Statistics:

Econometrics – Andren [Level: Intermediate]

http://bookboon.com/en/econometrics-ebook

[For students who find this book difficult then you should look to Introductory Statistics texts such as
those by Neil Weiss or Prem Mann to refresh your background in these areas.]

N.B. Generally the level of Maths required in the programmes does not go above an Intermediate
level.