Undergraduate Programme and Module Handbook 2025-2026
Module FINN3011: Financial Theory and Corporate Policy
Department: Finance
FINN3011: Financial Theory and Corporate Policy
| Type | Tied | Level | 3 | Credits | 20 | Availability | Available in 2025/2026 | Module Cap | None. | Location | Durham |
|---|
| Tied to | NN43 |
|---|---|
| Tied to | N302 |
| Tied to | N304 |
| Tied to | L100 |
| Tied to | L106 |
| Tied to | L109 |
Prerequisites
- Microeconomics (ECON2021) OR Corporate Finance (FINN2041)
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
- Decision making under uncertainty
- Risk and Insurance
- Static and dynamic asset allocation
- Classical and neo-classical asset pricing models
- Asymmetric information and agency theory.
- Capital structure.
- Dividend policy.
- Corporate restructuring
- Equity financing
Learning Outcomes
Subject-specific Knowledge:
- 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.
Subject-specific Skills:
- 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.
Key Skills:
- 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 workshops. Learning takes place through attendance at lectures, preparation for and participation in workshops, and private study.
- Formative assessment is by means of two online tests.
- Summative assessment is by means of an online synchronous timed written examination.
Teaching Methods and Learning Hours
| Activity | Number | Frequency | Duration | Total/Hours | |
|---|---|---|---|---|---|
| Lectures | 10 | 1 per week | 2 hrs | 20 | |
| Workshops | 4 | Fortnightly | 2 hrs | 8 | ■ |
| Preparation and Reading | 172 | ||||
| Total | 200 |
Summative Assessment
| Component: Exam | Component Weighting: 100% | ||
|---|---|---|---|
| Element | Length / duration | Element Weighting | Resit Opportunity |
| Online Examination | 2 hours | 100% | same |
Formative Assessment:
Two online tests.
■ 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