Reaching professional skills with the Final Master Thesis: Collaboration towards actual solutions

Abstract

In order to motivate the student through a professional experience, and to improve the teaching-learning process by letting the student gain experience, we implement a collaborative learning-through-service methodology. This method increases the student involvement level and the deep understanding of the tools. As a matter of example, we present the implementation of this method in the Final Master Thesis (FMTh) of the Master on Corporate Finance at the University of Valencia (UV). In these FMTh, students have to valuate an actual innovation developed by UV researchers (on chemistry, in this case) with the goal of helping them to transfer (sell) this innovation to the industry. This collaborative learning-through-service methodology helps students put into practice the technics learned in the Master and give them a strong sense of the financial professional practice.

Full text

INNODOCT 2018
Valencia, 14th-16th November 2018
DOI: http://dx.doi.org/10.4995/INN2018.2018.8829
Editorial Universitat Politècnica de València
Reaching professional skills with the Final Master Thesis:
Collaboration towards actual solutions
Irene Comeig Ramíreza, Alfredo Juan Grau Graub, Lucía Pinar Garcíac, Federico
Ramírez Lópezd, Amalia Rodrigo Gonzáleze
a, b, d, e Departamento de Finanzas Empresariales (Facultat d’Economía, Universitat de València
(SPAIN), Irene.Comeig@uv.es, Alfredo.Grau@uv.es, Federico.Ramirez@uv.es,
Amalia.Rodrigo@uv.es
c Departamento de Economía Aplicada (Facultat d’Economía, Universitat de València (SPAIN),
Lucia.Pinar@uv.es.
Abstract
In order to motivate the student through a professional experience, and to
improve the teaching-learning process by letting the student gain experience,
we implement a collaborative learning-through-service methodology. This
method increases the student involvement level and the deep understanding
of the tools. As a matter of example, we present the implementation of this
method in the Final Master Thesis (FMTh) of the Master on Corporate
Finance at the University of Valencia (UV). In these FMTh, students have to
valuate an actual innovation developed by UV researchers (on chemistry, in
this case) with the goal of helping them to transfer (sell) this innovation to
the industry. This collaborative learning-through-service methodology helps
students put into practice the technics learned in the Master and give them a
strong sense of the financial professional practice.
Keywords: Final Master Thesis, professional skills, learning through service,
collaborative work methodology, financial valuation, actual solutions.
Acknowledgements: The authors acknowledge financial support from University of
Valencia Vicerrectorado de Políticas de Formación y Calidad, UV-SFPIE_RMD17-589360.
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Reaching professional skills with the Final Master Thesis: Collaboration towards actual solutions
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1. Introduction
At the end of the official master's degree, students must complete their corresponding Final
Master Thesis (FMTh). The purpose of this FMTh is to complete the assimilation of the
knowledge that has been acquired during the postgraduate studies, writing a theoretical-
practical essay on some topic related to the master.
In Spain, the RD 193/2007, October 29, regulates the official university education and
establishes the obligation to complete the FMTh process to obtain the official master's
degree. On the other hand, RD 1027/2011, July 15, focuses on the skills that graduates must
acquire in a master. The competences related to the FMTh include, for example, knowing
how to apply knowledge in new environments, evaluating and selecting the appropriate
scientific theory and precise methodology to formulate judgments or know how to clearly
transmit the results coming from scientific research.
Our contribution to the educational innovation lies in providing the student with a
collaborative option to get involved in the professional domain while completing the
FMTh. This intervention improves student´s motivation; while this learning-through-
service process helps internalize professional techniques fostered through a collaborative
tutoring model. In the example of application that we present, the FMTh of the Master on
Corporate Finance at the University of Valencia (Spain), the student contacts a research
group of the University of Valencia (through the webpage developed to advertise this
teaching-learning project: RESEARCH + CASHLab, previous contacts, and/or brochures)
and develops her Final Master Thesis (FMTh) by analyzing the financial viability of the
transfer/sale to the industry of some research result of that group. Specifically, the question
that is intended to answer is: What is the maximum price that a company should be willing
to pay to acquire the exploitation rights of a specific research result (patent, license,
process, etc.)?
This type of FMTh not only helps transfer research results from universities to industry, but
also motivates students and allows them to experience inherent responsibilities of
professionals in business finance. The financial valuation of the project translates products
derived from the research into money, financial value and profitability, thus reducing the
information asymmetry between researchers and potential buyers of these products, which
facilitates the subsequent transfer of research results to the industrial environment.
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Irene Comeiga, Alfredo Graub, Lucía Pinarc, Federico Ramírezd, Amalia Rodrigoe
Editorial Universitat Politècnica de València
Fig. 1 Objectives and metodology
2. Objectives
The teaching-learning activity proposed in this paper has two main objectives, as Figure 1
shows, to be reached by students throughout their master thesis. On the one hand, students
gain professional competences (on financial issues, in our example) by developing and
applying the required skills. On the other hand, the gap between the academic knowledge
and student´s practice experience is reduced. To this twofold purpose, a mixed
methodology combining Cooperative Work and Learning-throug-service methods help
students acquire professional competences.
As Semeijn et al. (2005) claimed, the university system has the responsibility of providing
students with adequate training, so that they may be able to efficiently do their work in the
future. In the same line, Layer’s (2004) and Heijke et al. (2003) expose the importance of
the relationship between Higher Education and graduates’ employability. Additionally, in
order to evaluate competences acquisition or learning outcomes, competences should be
defined in a precise way (need to be observable and measurable) allowing to clearly
identify learning outcomes (Riesco, 2008),
Table 1 shows the description of competences to be acquired by students throughout the
elaboration of a master thesis.
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Reaching professional skills with the Final Master Thesis: Collaboration towards actual solutions
Editorial Universitat Politècnica de València
Table 1. Professional competences
Code
Description
CB2
Students know how to apply their knowledge to their work or vocation in a
professional manner and possess the skills that are usually demonstrated through the
elaboration and defense of arguments and the resolution of problems within their
area of study
CG6
Ability to analyze and search information from different sources
CG12
Capacity for teamwork
CG17
Capacity for autonomous learning
CE2
Students should be able to develop and interpret accounting information, both
financial, for external users, and internal, for management control and decision
making
CE4
Students should be able to solve problems of financial valuation, both in financing
decisions, as business investment, in the national and international environment
CE8
Students should know and analyze financial markets, as well as financial operations
attached to the business sector
CE49
Students should know the fundamentals of govern operations and financial markets
CE52
Ability to measure and assess the risk of financial assets and their applications in real
investment projects
CE56
Students should know the different financing instruments and be able to determine
the company's indebtedness policy
Font: Compiled by authors
The educational innovation proposal we present uses the methodology of Cooperative
Work and, specifically, develops Service-Learning Pedagogy (SLP) with postgraduate
students. Puig et al. (2009) define SLP in different ways by emphasizing two basic
components: a) the effectiveness of learning and the curricular application of procedures
and attitudes, b) the service given to the community, the transfer of research results to
industry, in our example. Following Puig et al. (2006), SLP wants to respond to real needs
of society by encouraging students’ participation and cooperation with other institutions
and entities beyond the university sphere. Hence, SLP also promotes values education
through the very practice. Definitely, the integral knowledge, which is acquired with master
studies, provides students with an updated tool kit that they can apply to give solutions to
real problems or demands from the socio-business fabric.
Specifically, our contribution to educational innovation helps students to get engage in the
professional reality during the completion of their FMTh. It is an attempt to reduce the gap
between academic training and professional practice. This contribution:
1. Gives students a first opportunity to make contact with professional activities and
practionners’ skills.
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Irene Comeiga, Alfredo Graub, Lucía Pinarc, Federico Ramírezd, Amalia Rodrigoe
Editorial Universitat Politècnica de València
2. Improves the teaching-learning process by promoting that students internalize work
techniques by they immersion in real cases with a real clients and consequences (it
produces the Transfer of Research Results to the industry).
3. Encourages students’ active and engaged participation by service-learning pedagogy.
The relation is based on cooperative work between students, research groups and
tutors.
4. It puts in contact the university study and the labor market, since students participate
in a simulated marketplace where they hold interviews with companies interested in
acquiring research results.
5. It has a positive impact on both students’ training and the transfer of research results
from the University of Valencia to industrial world.
6. In professional master studies, this kind of educational innovation focusing on FMThs
accomplishes higher level of achievement than traditional approaches.
3. Development of educational innovation
3.1. Cooperative Work and Service Learning Methodology
In order to develop our educational innovation, we select Cooperative Work methodology.
Because of its special features, it adequately fits pursued goals. As main advantage, this
methodology comprises student-oriented teaching-learning methods, since the more
students are involved in the very process, the more they are committed with and responsible
for their own learning. As a consequence, students assimilate transforming and meaningful
knowledge, which keeps available to be applied to different fields or situations in their
future careers. According to Ariza (2000), this methodology promotes the acquisition of
knowledge, skills or attitudes as a result of group work or, in other words, individual
learning as a result of a group process.
In addition, some authors emphasize the fact of that students who are involved and engaged
in a process to provide a solution to a real problem learn better and assimilate knowledge in
a more permanent way than students following passive learning styles (Ramírez and Grau-
Grau, 2016; Comeig and Jaramillo-Gutiérrez, 2011; Hernández and Rodrigo, 2013;
Rodrigo-González and Caballer-Tarazona, 2015)
In the implemented SLP experience, a three-side cooperation relationship is established: the
student, the academic coordinator/mediator-tutor, and the research group. Therefore, the
student receives academic and scientific support from both the coordinator/supervisor and
the “client” group with which the student works in finding out a solution to a real problem.
This triple interaction produces synergies enriching the quality of FMThs.
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Editorial Universitat Politècnica de València
The academic coordinator assumes a twofold role: as a responsible academician, she must
promote that students make reflection and develop critical thinking. As a responsible group
member she must coordinate the activities involved in the project to ensure that the
cooperation process reaches a final result that is satisfactory for all interested parties.
Figure 2 shows the virtuous circle created in our example. The student gets in touch with a
research group at the University of Valencia (thanks to the advertising made through
triptychs and a website developed to publicize this teaching-learning project,
RESEARCH+CASHLab, mainly) and she must perform a work (FMTh) on the financial
viability of some research results to be transfered or sold to the industry.
Fig. 2 Educative Innovation
This type of FMTh motivates students substantially and, in turn, transfers them the
responsibility felt by practionners in charge of corporate finance. The financial valuation of
the project reduces information asymmetries between researchers and potential
clients/buyers of innovations (enterprises). As a consequence, it facilitates the subsequent
transfer of research results to both enterprises and society.
3.2. Example of application of the collaborative option of immersion in the
professional reality during the realization of the FMTH
Our educational innovation integrates Service Learning, which is applied by postgraduate
students in Corporate Finance and Cooperative Work that allows different research and
teaching groups to collaborate. In our example, MINTOTA group has a research product
with a potential market share, RESEARCH + CASHLab group has the knowledge to give
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Irene Comeiga, Alfredo Graub, Lucía Pinarc, Federico Ramírezd, Amalia Rodrigoe
Editorial Universitat Politècnica de València
an economic-financial valuation to that product, and students in Corporate Finance are
willing to apply the knowledge acquired in master studies to their FMTh.
As an example of our educational innovation, we present a FMTh devoted to assess a
research product developed by MINTOTA group belonging to the Department of
Analytical Chemistry (Faculty of Chemistry-UV). The innovation to be valued is an in situ
colorimetric sensor that detects the amount of amines present in the air. This sensor may be
very useful in the food industry. It shows the level of contaminants (amines) present in the
food by using colors, which makes easy to identify how healthy the food is before being
consumed.
RESEARCH + CASHLAB group is formed by researchers belonging to Corporate Finance
Department (UV). This group represents a meeting point between researchers, investors and
enterprises. For this reason, it is especially well positioned to offer academic and scientific
support to those postgradute students in Corporate Finance who request to develop their
master thesis under this service learning methodology. This group assesses scientific
innovation such as new relevant findings, patents, licenses, etc., and so helps innovation
eventually reaches the society and enterprise.
The educational innovation follows the five following phases:
PHASE I. MEETING WITH MINTOTA RESEARCH GROUP
In the first phase, the student and his supervisor meet with the members of the MINTOTA
research group. They share relevant information on the innovation to be valued (passive
atmospheric device), in special its superior characteristics over main competitors. The
student is provided with all necessary data to make a financial valuation.
PHASE II. DESIGN OF THE HYPOTHESES AND THE PREVISIONAL FINANCIAL
STATEMENTS
This is a key phase for the project to be good ended, that affects importantly the project
valuation and profitability. The student along with his supervisor and RESEARCH +
CASHLAB group stablish the set of hypotheses related to the following:
1. Assumptions about the estimation of direct labor costs: part-time staff, number of
sensors to be manufactured per hour, etc.
2. Assumptions about the estimation of sales growth.
3. Assumptions about the estimation of fixed costs, advertising, depreciation derived
from obtaining the license, etc.
4. Assumptions about the estimation of the Profit and Loss statement.
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Reaching professional skills with the Final Master Thesis: Collaboration towards actual solutions
Editorial Universitat Politècnica de València
At this stage, the student must estimate the future net cash flows of the project, analyze
some available means of financing, and determine the profitability of the project.
Net Cash Flow is a financial concept related to Earnings Before Interest and Taxes (EBIT),
the investment in Fixed Asset and the investment in Net Operating Working Capital
(NOWC). Any increase in net fixed assets represents a cash outflow, and any decrease
represents a cash inflow. The book value of fixed assets decreases due to depreciation, and
increases thanks to investments in Capex (capital expenditures).
PHASE IV. STUDY AND ANALYSIS OF FINANCIAL INSTRUMENTS
Next, the student applies several valuation methods to analyze the financial viability of the
proposed project. Specifically, the methods are the following:
1. Net Present Value (NPV). It is a measure of net absolute profitability. This indicator
will serve to identify if the value of the project is higher than its cost, taking into
account the opportunity cost of capital.
2. Internal Rate of Return (IRR). It is a measure of gross return that allows us to decide
whether or not to undertake a project.
3. Financial Break-Even Analysis. It determines the minimum number of sensors for the
project to be profitable. Therefore, the project’s NPV will be positive if sensor sales
are higher than that minimum.
4. Sensitivity Analysis (SA). It allows us to identify dangerous scenarios that threat the
project’s viability, and keep such contingencies under monitoring.
5. Monte Carlo Method (MM). This method incorporates randomness in the variables
defined by the user in order to study the proposed model. Specifically, for some
variables, they were established minimum and maximum values, and 1,000
simulations of NPV were generated.
PHASE V. ISSUANCE OF THE FINANCIAL EXECUTIVE REPORT
Finally, the student issues two executive reports: a complete report, and a short version.
These documents are delivered to MINTOTA group. After verifying the financial viability
of exploitation of the passive devices is considered the exploitation of their license.
The activity ends when the student writes his master's thesis, which includes all the
developments and findings aforementioned, according to the academic guide.
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PHASE III. CALCULATION OF NET CASH FLOWS

Irene Comeiga, Alfredo Graub, Lucía Pinarc, Federico Ramírezd, Amalia Rodrigoe
Editorial Universitat Politècnica de València
4. Results
As a consequence of applying a collaborative methodology to provide real solutions
(learning-through-service) in the development of FMThs, professional competences are
acquired in a permanent way. The student internalizes the issues addressed (in our example:
the financial assessment treated during the master). In addition, practical competences are
acquired not only on financial valuation, but also on team work, transmission of idea, the
student acquires professional experience (in our example on corporate finance), and the
management of teamwork, but always under the supervision and collaboration of a teacher.
In our example, the main results of this innovation experience are enclosed into two
spheres: the one academic and the other researcher. In first place, from the academic point
of view: (i) the student applyes theoretical knowledge and takes contact with real
companies by valuing real investment projects, which conduces to the elaboration of his
thesis: “the evaluation of a license on a passive device for in situ detecting amines in
gases”. Additionally, (ii) most students who have developed this kind of tasks become
employees in the same company.
On the other hand, in the field of research transfer: (i) MINTOTA group receives two
executive reports, which give support to the trade of a license. In fact, other companies
have already requested this economic-financial viability report. (ii) RESEARCH +
CASHLAB group contributes to the transference of research results to the real business
world. RESEARCH + CASHLAB group has recently organized the first Conference on
Transmission of Research Results, led to postgraduate students, researchers, and
companies. This space catches institutions interested in this kind of services, and students
willing to develop professional activities.
5. Conclusions
The application of collaborative methodology to provide a solution to a real problem
(learning-through-service) by a FMTh, allows the student to acquire long-lasting
professional competences. The student internalizes the knowledge involved in the solution.
In addition, other practical skills are acquired such as: teamwork, communication,
collection of significant information, and management of time and responsibility. In short,
the student acquires professional experience under the tutelage and with the collaboration
of the professor.
Carrying out this innovation experience has allowed the students to make contact with the
real business world and, therefore, develop a large part of the professional skills they need
to adequately perform a job in the financial area.
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Reaching professional skills with the Final Master Thesis: Collaboration towards actual solutions
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One of the main advantages of the interdepartmental collaboration (in our example:
MINTOTA, RESEARCH + CASHLAB and Master on Corporate Finance) is that it allows
developing high quality Master's thesis in Corporate Finance, in a real business context. As
shown, synergies emerging in the entire process favor both academic and scientific results.
As a final conclusion, this kind of learning style makes possible a service through
collaboration and produces excellent results; in our example, with the leadership of
RESEARCH + CASHLAB group. In this way, it is possible to aproximate the different
groups of interest involved: students, researchers and companies.
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