MS-Finance1
New Academic Program Request Summary
The University of Arizona
NEW ACADEMIC PROGRAM CHANGE REQUEST SUMMARY
Requested Program Name: Master of Science with a major in Finance (MS-Finance)
Current Program Name:Master of Science with a major in Management andwith a concentration in Finance (MMF)
CIP Code: 52.0801
Requested by: Department of Finance, Eller College of Management
Desired Effective Term: Fall 2013 admissions
Background: (History of program, years in place, factors that led to this request.)
NOTE – ALTHOUGH TECHNICALLY A NEW PROGRAM, WE ARE SIMPLY RE-NAMING (AS IT SHOULD HAVE BEEN ORIGINALLY) THE MASTERS OF SCIENCE IN MANAGEMENT WITH A CONCENTRATION IN FINANCE PROGRAM TO THE MASTER OF SCIENCE IN FINANCE. As such there are no additional costs associated with program.
The primary purposes of this change are to (1) reduce confusion regarding the degree (i.e., the degree is a finance degree) , (2) make the program more marketable to prospective students, and (3) ensure that the program will be ranked by media outlets (e.g., the Financial Times’ Masters of Finance program rankings).
The Master of Science in Management with a concentration in Finance (MMF) degree has been extremely success, having grown from nine graduates in 2002 (first students admitted in fall 2001) to a current projected incoming class in fall 2012 of 50 students. This program was initially approved under the MS-Management degree offerings to ensure that the degree was viable, which has been proven over the last 10 years. Applications have increased to over 200 applicants for fall 2012 admission.
In addition to training Arizona residents to work in industry as financial specialists, the UA and Eller College obtain substantial revenues from the out-of-state tuition paid by non-residents and the differential tuition charged to all MMF students.
Our students have ranged from around the world, though the majority of the international students have been from the P.R. of China. The diversity of the student cohorts is beneficial to faculty and fellow students alike. The program also adds extensively to the finance electives available to full-time MBA students studying at Eller College.
Rational for the request:
The caliber of applicants and students has increased as the program has become known throughout undergraduate finance programs world-wide. However, the strongest students are often accepted to, and accept admission to MS-Finance programs. The current name (MMF) of the degree makes it difficult to compete for top applicants. Further, the newest rankings by the Financial Times (London) are based on MS-Finance programs and our program was deemed ineligible for participating in this ranking and marketing tool because of the degree name.
The current MMF degree is truly a MS-Finance degree as students take 30 hours of graduate level finance courses and complete a 6-credit master’s project course over the summer. By renaming the degree to MS-Finance, the degree will be portrayed accurately in rankings and in recruiting efforts.
Benefits to be derived:
As pointed out above, to change will (1) reduce confusion regarding the degree (i.e., the degree is a finance degree) , (2) make the program more marketable to prospective students, and (3) ensure that the program will be ranked by media outlets (e.g., the Financial Times’ Masters of Finance program rankings).
Impact on Department/Institution:
The increased class size will require the addition of several classes. The program currently generates approximately $1.3M in annual revenue for the University of Arizona. Increasing the size from 33 students to 50 students would generate an additional $700K in revenue and only increase costs by approximately $60K/year in staffing a two additional courses.
Implications for Students Affected by the Change:
The students have been anxious for this change and have asked for it since the inception of the degree program. The students accurately perceive that it will be easier to market their intense graduate finance training through a degree reflecting finance as the major (vs. management).
Implications for Faculty Affected by the Change:
Current tenure-track faculty will see no change to their teaching load. Coverage of additional classes due to an increase in the cohort size as a result of the degree name change will be flexible, with new tenure-track faculty and lecturer hires offering electives for the program.
Impact on Other Academic Units:
All classes in the MMF/MS-Finance program are taught by and administered by the Department of Finance. No impact on other academic units is anticipated.
Budgetary Impact:
None. Because the program is a net revenue generator for the college and the university we plan to grow to at least 50 students/year within the next few years regardless of whether the program remains an MMF or MS-F degree. As pointed out above, the program is a net revenue generator. If the program grows larger due to the name change, the impact will be a net revenue gain to the college and university.