Corporate Finance

Module code: EC3058

Module co-ordinatorDr Fabrizio Adriani

  • How do companies select their projects?
  • How do they fund them?
  • hat are the channels through which the stock and bond markets affect the real economy?
  • What are the problems that financial contracts solve?

Answering these questions is crucial for our understanding of the financial world. Corporate finance seeks to answer these questions by analysing corporate investment decisions, corporate choices of capital structure and dividend policy, and how conflicts of interests within the company shape financial decisions. 

In this module you will study not just what we currently know about these issues, but also how we came to know what we know. We will review existing theories and the available evidence, and look at the tools devised both by academics and by practitioners to analyse the financial challenges faced by the modern corporation.

Topics covered

  • Corporate governance
  • Capital budgeting under risk
  • Market efficiency
  • Asset pricing
  • Capital structure
  • Dividend policy

Learning

  • 20 one-hour lectures
  • 5 one-hour seminars

Assessment

  • Exam, 90 minutes (90%)
  • Coursework (10%)