Finances and Investment Analysis



The Finance and Investment Analysis Area is one of the most traditional Department areas, having been previously called Economic Engineering. As a master degree program area it has also been a pioneer in Brazil, contributing for the consciousness of the importance that should be attributed to the decisions on the capital allocation and administration in development economies.

Along the years, the emphasis in this area is being changed, following the academic tendencies. Initially, such emphasis was limited to the analysis techniques for industrial projects, i.e. the “strictu sensu” economic engineering; modernly, recognizing the importance of the role played by the capital market, both as asset valorization mechanism and to propitiate innovating financing methods, the area is concentrating on the study concerning the capital market itself, as well as on company’s financial decisions that depend strongly on the context of this market.

The manners as how the companies allocate resources in time and between different risk alternatives, constitute the object study of the financial analysis theory addressed by the Department. The central concern resides in the comprehension of how the capital market existence affects the resource allocation, due to the opportunities offered to individuals and firms to distribute their resources in a more efficient way between assets of different risk and return profiles. Thus, the finance study tries to understand the decision making of individuals, companies and financial institutions in what refers to the capital allocation.

DEI’s Financial and Investment Analysis Area is oriented in the sense of rendering to students a systematic and rigorous training of the economy, finance and statistic basic theory, thus capacitating them in the fundament understanding and in the critical application of analysis methods. Thus, the area approach is interdisciplinary, as it is based on the theories, methodologies and analytic tools presented from several other knowledge areas.

The priorities in the DEI Financial area are to propitiate an acceleration in the finance research flow in Brazil, and to promote the development of advanced methods for the financial decision taking. For such, the area emphasizes the theoretical and quantitative approach, taking advantage of its students, which are normally engineers, Thus, it is necessary that the candidates have a solid qualification in Differential Calculus, Linear Algebra and in the Probability Theory and Statistics. The objectives proposed for the concentration area are:

  1. Behavior analysis of the capital market, especially concerning the forms through which the security values are evaluated, such as public and private securities, the stock portfolios and the options.
  2. Development of company’s advanced financial decision analysis methods, including the managerial accounting and cost control, envisaging the improvement of planning techniques and productive system control.

Such objectives are pursued through organized activities around two RESEARCH LINES, as follows:

Capital Markets – In this line or research the economic analysis and the financial management of corporations are approached in short, medium and long terms. The capital and financing sources, the capital going public alternatives, the investment opportunities and its real embedded options, the asset return maximization, and the valuation, risk and capital structure of the company are duly treated and analyzed. The research products intend to proportionate the tool application opportunity approached in the line, as well as to allow the students to treat contemporary and relevant subjects in the corporative financial area.

 

Research Projects
Energy Economics Visualizar
Portfolio Optimization and asset pricing Visualizar

 

Corporative Finances – Approaches the capital market analysis and the way in which this market sets prices to risk bonds. It also deals with the behavior of agents before uncertainty situations, of the performance of bonds and securities, as well as of the portfolio selection, optimization and management. The approach and the applications occur especially at corporative level.

 

Research Projects
Assets and Liabilities Management Visualizar
Quantitative Methods in Corporate Finance Visualizar
Real Options and Theory of Evolutionary Games Applied to Corporate Finance Visualizar

 

The researching professors that participate of this concentration area are:

André Barreiras da Silva Rocha, D.Sc.

Bruno Fanzeres dos Santos, D.Sc.

Davi Michel Valladão, D.Sc.

Fernando Luiz Cyrino Oliveira, D.Sc.

Luiz Eduardo Teixeira Brandão, D.Sc.