Corporate Finance

Module code: EC7061

Module co-ordinator: Dr Fabrizio Adriani

  • How do companies select their projects?
  • How do they fund them?
  • What 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. In this module you will learn how to analyse corporate investment decisions, examine corporate choices of capital structure and dividend policy, and discover how conflicts of interests within a company shape financial decisions.

You will study not just what we currently know about these issues, but also to how we came to know what we know. As well as reviewing existing theories and the available evidence, we will consider the tools devised both by academics and by practitioners to analyse the financial challenges faced by the modern corporation.

Topics covered

  • Corporate governance
  • Asymmetric information and financial contracts
  • Capital budgeting under risk
  • Market efficiency 
  • Asset pricing
  • Capital structure
  • Dividend policy 


  • 18 one-hour lectures
  • 5 one-hour tutorials


  • Exam, 90 minutes (100%)