Assignment Remit
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Programme Title
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MSc Financial Economics
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Module Title
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Advanced Quantitative Methods
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Module Code
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40053
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Assignment Title
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Coursework
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Level
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LM
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Weighting
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50%
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Hand Out Date
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27/01/2025
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Due Date & Time
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28/04/2025
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12pm
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Feedback Post Date
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12/05/2025
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Assignment Format
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Essay
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Assignment Length
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1,750 Words
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Submission Format
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Online
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Individual
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Assignment:
In this coursework we are interested in replicating the results of Tan et al. (2024), who explores the causal effect of social drinking culture on the cost of bank loans in China. Read the paper carefully and answer parts A and B.
A. Replication (50%)
Using the data set (.dta) provided in the module Canvas page, replicate Tables 1-6.
B. Report (50%)
Write a critical report discussing Tan et al. (2024). Discuss the paper’s empirical strategy, the robustness of the results and any drawbacks.
References:
Tan, J., Wang, Z., & Chan, K. C. (2024). Impact of social drinking culture on the cost of bank loans: Rent-seeking or loan-contracting efficiency. Economic Modelling, 141, 106912.
Links:
Paper: https://www.sciencedirect.com/science/article/pii/S0264999324002694
Module Learning Outcomes:
In this assessment the following learning outcomes will be covered:
LO 1. Critically evaluate knowledge and understanding of econometric techniques employed to analyse financial data.
LO 2. Synthesise econometric studies in the empirical literature and critically analyse the results and the approaches adopted.
LO 3. Critically analyse financial databases and create models using appropriate software.
LO 4. Identify and critically appraise recent developments in advanced econometrics techniques used in financial economics.
LO5. Develop critical thinking, judgement and ICT based problem-solving skills.
Grading Criteria / Marking Rubric:
How to do well:
• Perform. the appropriate quantitative analysis. Investigate the structure of the data set and think carefully about which methodology and which variables should be used.
• Perform. statistical tests to support your empirical approach and results if needed.
• You might use tables and graphs to develop and justify your empirical strategy.
• Present your tables clearly, provide a detailed and thorough analysis of all the findings (without going over the word limit) and discuss whether they are precise or not.
• While you are not expected to get exactly the same results as the paper you are replicating, you should use them as a guide for the types of answers you might expect to get and must provide the economic intuition for each of your results.
• Submit well organised and detailed Stata code.
• Submit a piece of work that is well written, with no typographical or grammatical mistakes, and that is well organised and well formatted.
The essay must also display the University’s required level of proficiency in English language:
Pass and above:
· The work is written / spoken to an acceptable standard of English
· Spelling, punctuation, vocabulary, sentence construction, and textual coherence is of an acceptable standard.
Fail:
· Poor standard of written / spoken English, making it difficult to understand the points being made.
· Weaknesses of writing / speaking are so frequent or serious that they impede communication.
Your submission will be graded according to the following criteria:
Content: Demonstrate an understanding of econometric concepts and methodologies, apply econometric techniques appropriately, present comprehensive analysis of the studied paper, and draw logical conclusions based on evidence. (75% weight)
Form. Demonstrate the ability to produce a well-written and polished essay, with particular attention to the essay's structure and organisation, effective writing style, proper citation format, and proper grammar. (25% weight)