School of Finance

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The HSE School of Finance is the leading Russian competence center in the field of corporate finance, business valuation, banking, stock market, risk management and insurance, accounting and audit.

HSE is the first Russian university in the global ranking "QS - World University Rankings by subject", 2022 in the subject area of Accounting and Finance. Moreover, the university is the 1-st in the rating "THE World University Rankings by subject" in the subject area of Business & Management Studies, 2022

HSE University Competition for Faculty Positions 2026 (Summer Campaign 2026)

Publications

Book

Systemic Financial Risk: An Emerging Market Perspective

Edited by: A. M. Karminsky, Mikhail Stolbov.

Palgrave Macmillan, 2024.

Article

Comparative Analysis of Stablecoin Architectural Features in Fragmented Regulatory Environments

Egorov A., Karminsky A. M., Vlasov A.

FINTECH. 2026. Vol. 5. No. 1. P. 1-22.

Book chapter

Beyond Claims: CSR Reports, ESG Initiatives, and the Consequences of Impressions Management; Empirical Analysis

Badr I., Rawnaa Ibrahim, Hussainey K.

In bk.: Opportunities and Risks in AI for Business Development. Vol. 2: 546. Bk. Opportunities and Risks in AI for Business Development. Prt. 636. Springer, 2025. P. 385-399.

Working paper

Momentum Factor or Factor Momentum in REITs Market?

Dobrynskaya V. V., Tomtosov A., Речмедина С.

SERIES: FINANCIAL ECONOMICS. WP BRP 60/FE/2017. НИУ ВШЭ, 2025

All publications

Delivered by:: School of Finance

Type:: Compulsory course

When:: 1 year, 3 module

Instructor

Shchepeleva, Maria

Full Syllabus Ask Question

Abstract

This course introduces fundamental ideas in the theory of finance. It consists of three parts, including microeconomic foundations of finance, corporate finance and asset pricing. The first section covers a number of topics, ranging from individual decision making under certainty and uncertainty to market equilibrium and the impact of information asymmetry on exchange outcomes. The second section revises some fundamental ideas from capital structure management such as Modigliani-Miller theorem, the concept of WACC, the role of taxes and dividend policy in creating company’s value. The third section studies conventional models of asset pricing, e.g. the capital asset pricing model (CAPM) and its extensions, the arbitrage pricing theory (APT) and martingale pricing methods.

Learning Objectives

This course is intended to give students a comprehensive understanding of the fundamental theoretical concepts in finance and describe various techniques for appropriate pricing of financial instruments.

Expected Learning Outcomes

describe the main functions of the financial sector
know the main principles of finance
get acquainted with the main issues in finance: stochastic discount factor, risk-neutral valuation, (in)complete markets, asymmetric information, equilibrium and arbitrage pricing
know the factors, which determine the investors' choice under certainty and uncertainty
know how to calculate coefficients of risk-aversion
understand and discuss the logic of capital structure decisions
understand corporate payout decisions
know the assumptions, application and limitations of the modern portfolio theory
describe the assumptions, apply and criticize CAPM
understand the principles of Arrow-Debreu pricing and martingale pricing
describe, apply and criticize single and multiple factor asset pricing models
get acquainted with the Efficient Market Hypothesis and models of financial equilibrium with differential information

Course Contents

The role of financial markets in macroeconomics.
Introduction to the Theory of Finance: evolution of the discipline and the main principles of finance.
What determines the demand for financial assets? Making choices in risky situations. Risk aversion and investment decisions.
Corporate financial decision making. Part 1.
Corporate financial decision making. Part 2.
Modern Portfolio Theory.
The Capital Asset Pricing Model.
Arrow-Debreu Pricing. The Consumption Capital Asset Pricing Model.
Arbitrage Pricing. The Martingale Measure. The Arbitrage Pricing Theory.
Efficient Market Hypothesis. Financial equilibrium with differential information.

Assessment Elements

Тест 1
Test 2
Essay
Presentation
Student Activity

Interim Assessment

2025/2026 3rd module
0.3 * Presentation + 0.25 * Test 2 + 0.1 * Student Activity + 0.25 * Тест 1 + 0.1 * Essay

Bibliography

Recommended Core Bibliography

Advances in financial economics, , 2012
Asset pricing, Cochrane, J. H., 2005
Berk, J. B., & DeMarzo, P. M. (2017). Corporate Finance: The Core, Global Edition: Vol. Fourth edition. Pearson.
Brealey, R. A., & Allen, F. (2015). Principles of corporate finance. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.BEEE7487
Cochrane, J. H. (2005). Asset Pricing (Vol. Rev. ed). Princeton, N.J.: Princeton University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=329716
Corporate finance, Berk, J., 2011
Corporate finance, Brealey, R. A., 2006
Corporate finance, Brealey, R. A., 2006
Pesaran, M. H. (2010). Predictability of asset returns and the efficient market hypothesis. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.69756440
Ray Ball. (2009). The Global Financial Crisis and the Efficient Market Hypothesis: What Have We Learned? Journal of Applied Corporate Finance, (4), 8. https://doi.org/10.1111/j.1745-6622.2009.00246.x

Recommended Additional Bibliography

Теория финансов : материалы для чтения : [по книге Martin J.D., Cox S.H., MacMinn R.D. The theory of finance], Martin J.D., 2008

Authors

Shchepeleva MARIYA ALEKSANDROVNA

Topical Issues in Financial Economics