Ajaz Ul Islam Syllabus Eco and CORF

Basics of Econometrics
Ph.D. L T P C
Course Code: 3 0 0 3
Course Objective:
1. To make students aware of the core concepts of econometrics with a special focus on
linear models
2. To make students aware of the use of statistical software to implement the various
techniques and demonstrate the ability to analyze and assess empirical results.
3. To make students understand the basic assumptions on which econometric models are
based and their implications.
4. To help students how to draw inferences, interpret and critically evaluate applied
work and econometric findings
Course Outcomes
1. Discuss basic concepts of econometrics and descriptive statistics and their

applications
2. Analyze the probability of occurrence of events and their applicability in sample
selection
3. Discuss regression analysis and how the models need to be adjusted in different
settings
4. Investigate various assumptions in multivariate analysis and how they are influencing
the research output.
Chapter 1
Econometrics: nature scope and definition, Descriptive statistics: measures of frequency

(count, percent, frequency), measures of central tendency (mean, median, and mode),
measures of dispersion or variation (range, variance, standard deviation) measures of position
(percentile ranks, quartile ranks), the shape of frequency distribution, Descriptive statistics
using SPSS.
Chapter 2
Probability: the probability of a single event, probability of multiple events, discrete

probability distributions, binomial distribution, poison distribution, continuous probability
distributions, normal distribution
Sampling: Sampling; sampling distribution of the mean, estimation using the normal
distribution, confidence intervals for the mean using the t-distribution.
Chapter 3
Regression analysis: the two variable linear model, the ordinary least squares method, test of
significance of parameter estimates, a test of goodness of fit and correlation, properties of
ordinary least-squares estimators.
Multiple regression analysis: multivariate model, tests of significance of parameter estimates,

the coefficient of multiple determinations, a test of the overall significance of the regression,
partial correlation coefficient, matrix notation
Chapter 4
Assumptions: multicollinearity, autocorrelation, heteroscedasticity, homoscedasticity and

errors in variables problems, causes, consequences and remedial measures, model
specification, and diagnostic testing.
ARMA, Identifying ARMA, non-stationary series, testing for unit root, co-integration and
error correlation, causality
Books for reference
 Das, P. (2019). Econometrics in theory and practice. Springer, 10, 978-981.

 Gujarati, D. N. (2021). Essentials of econometrics. SAGE Publications.
 Gujarati, D. N., & Porter, D. C. (2003). Basic econometrics (ed.). Singapore:
McGraw Hill Book Co.
 Linton, O. (2017). Probability, statistics, and econometrics. Academic Press
Corporate Finance
Ph.D. L T P C
Course Code: 3 0 0 3
Course Objective:
5. To make students aware of the core concepts of corporate finance and its changing
paradigm.
6. To make students aware of the use of different capital structures and how they will
affect the profitability of the firm.
7. To give students an understanding of basic concepts of the time value of money and
its applicability in financial and corporate decision-making.
8. To help students aware of the decisions in mutually exclusive projects using capital
budgeting techniques.
Course Outcomes
5. Discuss basic concepts of corporate finance, its objectives, and challenges.

6. Analyze the capital structure of the company and discuss the relationship between the
capital structure and the profitability of the firm.
7. Discuss the time value of money and its applicability in various situations including
present and future.
8. Investigate the criteria for the selection of a project using capital budgeting techniques
and how these techniques could be used in combinations.
Chapter 1
Corporate finance: meaning, scope, objectives and definition, financial decisions, objectives
of financial management, firm value and equity value, profit maximization and shareholders
wealth maximization, changing role of finance managers, Organization of the finance
function
Agency model; problem and agency cost, disciplining management through corporate
governance
Chapter 2
Capital structure decisions – overview of financing choices –the financing process; internal
and external financing, operational and financial leverage, business risk and its effect on the
use of financial leverage
Determination of the optimal capital structure, Modigliani and Miller Propositions I and II,
theories for determining optimal capital structure, Static theory, Signalling theory, Pecking
order theory, other factors affecting capital structure - Corporate finance in practice, planning
the capital structure: EBIT and EPS analysis. ROI & ROE analysis.
Chapter 3
Time Value of Money: the concept of the time value of money, techniques of the time value
of money, compounding techniques/future value techniques, the future value of single cash
flow, uneven cash flow, annuity, and annuity due.
Discounting/present value techniques, the present value of single cash flow, uneven cash
flow, annuity, annuity due, growing annuity, and perpetuity loan amortization schedule
Chapter 4
Capital budgeting: meaning of capital budgeting, the importance of capital budgeting, capital
investment projects capital budgeting decision techniques, discounting techniques, net
present value, profitability index/benefit-cost ratio, internal rate of return, discounted payback
period.
Non-discounting techniques, payback period, accounting rate of return. Comparing projects

with varying maturity with varying cash flows - Capital budgeting decision rules.
Books for reference
 Brigham, E. F., & Houston, J. F. (2021). Fundamentals of financial management.

Cengage Learning.
 Chandra, P. (2005). Fundamentals of financial management. Tata McGraw-Hill
Education.
 Damodaran, Corporate Finance – John wiley& Co., 2/e, 2004
 I.M. Pandey – Financial Management (Vikas), 9/e,
 M.Y. Khan & P.K. Jain – Financial Management (TMH), 5/e
 Vanhorne, Financial Management & Policy, Pearson / PHI, 11/e, 2002.

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Basics of Econometrics

1. Discuss basic concepts of econometrics and descriptive statistics and their

Econometrics: nature scope and definition, Descriptive statistics: measures of frequency

Probability: the probability of a single event, probability of multiple events, discrete

Multiple regression analysis: multivariate model, tests of significance of parameter estimates,

Assumptions: multicollinearity, autocorrelation, heteroscedasticity, homoscedasticity and

Books for reference

 Das, P. (2019). Econometrics in theory and practice. Springer, 10, 978-981.

5. Discuss basic concepts of corporate finance, its objectives, and challenges.

Non-discounting techniques, payback period, accounting rate of return. Comparing projects

Books for reference

 Brigham, E. F., & Houston, J. F. (2021). Fundamentals of financial management.

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