Module ECON3251: FINANCIAL THEORY AND CORPORATE POLICY

Department: Economics, Finance and Business (Economics and Finance)

ECON3251: FINANCIAL THEORY AND CORPORATE POLICY

Prerequisites

• Corporate Finance.

Corequisites

• None.

Excluded Combination of Modules

• None.

Aims

• This module aims to:
• provide students with theoretical knowledge and understanding of key selected theories in finance and corporate policy decisions by building on the knowledge and skills acquired at level 2.
• familiarise students with selected empirical issues and methods of analysis of corporate financial decisions within the broader framework of financial theories.

Content

• Major theories of modern corporate finance and their empirical validity
• Agency theory and corporate policy
• Capital market efficiency and share price volatility
• Capital structure decisions of firms: theory and applications
• Dividend policy: theory and applications
• Going public and raising equity capital
• Raising long-term debt capital
• Mergers, restructuring and corporate control

Learning Outcomes

• At the conclusion of this module students should have:
• knowledge and understanding of theoretical issues relating to corporate financial policy decision.
• had the opportunities to appreciate the applications in corporate financial policy decisions drawing on recent research.

• At the conclusion of this module students should be able to apply their knowledge in decision making, in corporate financial policy and they should therefore also be able to critically judge the extent of each major financial policy decision on the wealth of the firm and solve relevant problems.

• Written Communication - through summative assessment.
• Planning and Organising - by observing the strict assignment deadlines and by preparing for the examination.

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

• Teaching is by lectures and seminars. Learning takes place through attendance at lectures, preparation for and participation in seminar classes, and private study. Formative assessment is by means of an essay. Summative assessment is by means of a written examination.

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment:

One 1500 word essay.

■ Attendance at all activities marked with this symbol will be monitored. Students who fail to attend these activities, or to complete the summative or formative assessment specified above, will be subject to the procedures defined in the University's General Regulation V, and may be required to leave the University