Financial Markets and Institutions Graduate School of by liaoqinmei


									                         Financial Markets and Institutions (5155300)
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                   Financial Markets and Institutions (5155300)
                           Graduate School of Finance
                        National Chung Cheng University
                                  Syllabus 2007

                                     Pei-Hsuan Lee
                              Tel: (05) 2720411 ext. 34208

Time: Thursdays 14:10-17:00
Venue: Room 359, College of Management

Course Description:

This course presents the development of financial markets and explores the role of
financial institutions in the financial system. Topics covered in this course will include
financial development, financial liberalization, financial integration, and the topics
relative to the financial institutions or financial markets.

 Week          Date         Topics
  01          09/13         Introduction
  02           09/20        Financial Development
  03           09/27        Financial Development
  04           10/04        Financial Liberalization
  05           10/11        Financial Liberalization
  06           10/18        Asymmetric Information
  07           10/25        Conflicts of Interest
  08           11/01        Theory of Financial Intermediation
  09           11/08        FDI v.s. Financial Services
  10           11/15        Mid-term Exam
  11           11/22        Mortgage Market
  12           11/29        Mortgage Market
  13           12/06        Financial Integration
  14           12/13        Foreign Bank Entry
  15           12/20        Relationship Banking
  16           12/27        Banking Regulation
  17           01/03        Mutual Fund Industry
  18           01/10        Final Exam
                       Financial Markets and Institutions (5155300)
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1. F. Mishkin and S. Eakins (2006), Financial Markets & Institutions 5th Edition,
   Addison Wesley Publisher.
2. A list of papers which can be found in the course outline.

Based on discussion of journal articles in class (30%), two exams (30% each), and
class participation (10%).

Course outline:
1. Financial Development
    Video: 張紹台(2005),台灣金融發展史話,臺北市,台灣金融研訓院。
    Mishkin and Eakins (2006), Chapters 1-2

2. Financial Liberalization
    Bonghoon Kim and Lawrence Kenny (2007), Explaining when developing
       countries liberalize their financial equity markets, Journal of International
       Financial Markets, Institutions & Money, 17, 387-402.
    Charles Wyplosz (2002), How risky is financial liberalization in the developing
       countries? Comparative Economic Studies, 44, 2/3, 1-26.
    Geert Bekaert, Campbell Harvey and Christian Lundblad (2001), Emerging
       equity markets and economic development, Journal of Development
       Economics, 66, 465-504.
    Geert Bekaert, Campbell Harvey and Christian Lundblad (2006), Growth
       volatility and financial liberalization, Journal of International Money and
       Finance, 25, 370-403.

3. Asymmetric Information: Adverse Selection and Moral Hazard
    Mishkin and Eakins (2006), Chapter 15
    Paul Calem, Michael Gordy and Loretta Mester (2006), Switching costs and
       adverse selection in the market for credit cards: New evidence, Journal of
       Banking & Finance, 30, 6, 1653-1685.

4. Conflicts of Interest
    Mishkin and Eakins (2006), Chapter 16
    Roni Michaely and Kent Womack (1999), Conflict of interest and the credibility
       of underwriter analyst recommendations, Review of Financial Studies, 12, 4,
                       Financial Markets and Institutions (5155300)
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5. Theory of Financial Intermediation
    Franklin Allen and Anthony Santomero (1998), The theory of financial
       intermediation, Journal of Banking & Finance, 21, 1461-1485.
    Janet Mitchell (2005), Financial intermediation theory and implications for the
       sources of value in structured finance markets, National Bank of Belgium
       Working Paper No. 71.

6. FDI v.s. Financial Services
    Michael Keren and Gur Ofer (2002), The role of FDI in trade and financial
       services in transition: What distinguishes transition economies from
       developing economies? Comparative Economic Studies, 44, 1, 15-45.
    Claudia Buch and Alexander Lipponer (2007), FDI versus exports: Evidence
       from German banks, Journal of Banking & Finance, 31, 805-826.

7. Mortgage Market
    Mishkin and Eakins (2006), Chapter 12
    David Reiss (2006), Subprime Standardization: How Rating Agencies Allow
       Predatory Lending to Flourish in the Secondary Mortgage Market, Florida
       State University Law Review, 33, 985-1066.
    Paul S. Calem, Kevin Gillen and Susan Wachter (2003), The Neighborhood
       Distribution of Subprime Mortgage Lending, University of Pennsylvania,
       Institute for Law and Economics Research Paper No. 03-39.
    John Kiff and Paul Mills (2007), Money for Nothing and Checks for Free:
       Recent Developments in US Subprime Mortgage Markets, IMF Working
       Paper No. 07/188.
    Alexander Belikoff, Kirill Levin, Harvey Stein and Xusheng Tian (2007),
       Analysis of Mortgage Backed Securities, Bloomberg Financial Market
       Working Paper Series.

8. Financial Market Integration
    Claudia Buch (2002), Financial market integration in the US: Lessons for Europe?
       Comparative Economic Studies, 44, 1, 46-71.
    James Lothian (2006), Institutions, capital flows and financial integration,
       Journal of International Money and Finance, 25, 358-369.
                       Financial Markets and Institutions (5155300)
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9. Foreign Bank Entry
    Mishkin and Eakins (2006), Chapter 18
    Allen Berger, Claudia Buch, Gayle DeLong, and Robert DeYoung (2004),
        Exporting financial institutions management via foreign direct investment
        mergers and acquisitions, Journal of International Money and Finance, 23,
    Hidenobu Okuda and Suvadee Rungsomboon (2007), The effects of foreign bank
        entry on the Thai banking market: Empirical analysis from 1990 to 2002,
        Review of Pacific Basin Financial Markets and Policies, 10, 1, 101-126.

10. Relationship Banking
     Mishkin and Eakins (2006), Chapters 17-18
     Mitchell Petersen and Raghuram Rajan (1994), The benefits of lending
        relationships: Evidence from small business data, Journal of Finance, 49:1,
     Ivan Brick and Darius Palia (2007), Evidence of jointness in the terms of
        relationship lending, Journal of Financial Intermediation, 16, 452-476.
     Allen Berger, Leora Klapper, Maria Soledad Martinez Peria and Rida Zaidi,
        Bank ownership type and banking relationships, Journal of Financial
        Intermediation, Article In Press.

11. Banking Regulation
     Mishkin and Eakins (2006), Chapters 17, 18, 20
     James Barth, Gerard Caprio Jr. and Ross Levine (2004), Bank regulation and
        supervision: what works best? Journal of Financial Intermediation, 13,

12. Mutual Fund Industry
     Mishkin and Eakins (2006), Chapters 20-21
     Xuanjuan Chen, Tong Yao and Tong Yu (2007), Prudent man or agency problem?
        On the performance of insurance mutual funds, Journal of Financial
        Intermediation, 16, 175-203.

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