This is an archived handbook for a previous year. The current undergraduate and postgraduate handbooks can be viewed using the links above.
Undergraduate Handbook 2025-2026 (archived)
Module FINN3011: Financial Theory and Corporate Policy
Department: Finance
FINN3011: Financial Theory and Corporate Policy
| Type | Level | Credits | Availability | Module Cap | Location |
|---|---|---|---|---|---|
| Tied | 3 | 20 | Available in 2025/2026 | None. | Durham |
Tied To
- L100: Economics
- L106: Economics with Placement Year
- L109: Economics with Study Abroad
- N302: Accounting and Finance with Placement Year
- N304: Accounting and Finance with Study Abroad
- NN43: Accounting and Finance
Pre-requisites
- Microeconomics (ECON2021) OR Corporate Finance (FINN2041)
Corequisites
- None
Excluded Combinations
- 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 | Attendance Monitored |
|---|---|---|---|---|---|
| Lectures | 10 | 1 per week | 2 hrs | 20 | |
| Workshops | 4 | Fortnightly | 2 hrs | 8 | Yes |
| Preparation and Reading | 172 | ||||
| Total | 200 | ||||
Summative Assessment
| Component | Component Weighting | Element | Length/Duration | Element Weighting | Resit Opportunity |
|---|---|---|---|---|---|
| Exam | 100% | Online Examination | 2 hours | 100% |
Formative Assessment
Two online tests.
Students who do not attend monitored activities shown under Teaching Methods
and Learning Hours, or who fail to complete the summative or formative
assessment(s) specified above, may be subject to the Academic Progress
procedures defined in the University's General Regulation V, and may be
required to leave the University.