Studying at York
Corporate Finance and Governance - ECO00108M
- Department: Economics and Related Studies
- Credit value: 20 credits
- Credit level: M
- Academic year of delivery: 2024-25
- See module specification for other years: 2023-24
Module summary
This module introduces the learner to corporate finance and corporate governance. We will consider many of the financial decisions faced by a modern firm including should the firm raise equity or use debt, when should the firm invest, what is the time value of money and whether the firm should pay dividends
Module will run
| Occurrence | Teaching period |
|---|---|
| A | Semester 1 2024-25 |
Module aims
This module introduces the learner to corporate finance and corporate governance. We will consider many of the financial decisions faced by a modern firm including should the firm raise equity or use debt, when should the firm invest, what is the time value of money and whether the firm should pay dividends. We will consider these and other questions both theoretically and in light of the professional responsibilities of the modern financial manager. These discussions are undertaken for a diversity of corporate forms including public, private and other third sector entities.
Module learning outcomes
After successful completion of the module students will be able to:
Subject content
- Critically assess the importance of corporate finance in a contemporary context
- Develop a questioning and evaluative understanding of tools and instruments employed in corporate finance.
- Comprehend the professional role of the financial manager within the firm.
- Calculate and solve problems using investment appraisal tools.
- Explain, summarise and evaluate the rationale for corporate finance decisions using both theoretical and empirical tools.
- Comprehend and apply key corporate governance theories and practice
Academic and graduate skills
- Advanced subject specific knowledge and understanding
- Cognitive (thinking) skills: through self-study and assessments
- Analytical skills required to undertake corporate finance calculations and/or estimations and comprehend corporate governance decision making .
- Communication: via written assignments, online discussion boards, virtual study groups and tutorials;
- Ability to conduct research into financial issues individually through data collection, analysis, synthesis and reporting.
Module content
- Introduction of elements of corporate finance
- Corporate governance
- Financial statement analysis and discounted cash flow valuation
- Net present value and other investment rules
- Short and long term financing
- Equity and debt financing
- Capital structure: basic concepts, limits to the use of debt and valuation and capital budgeting for the levered firm.
- Dividends and other payouts.
Indicative assessment
| Task | % of module mark |
|---|---|
| Closed/in-person Exam (Centrally scheduled) | 50 |
| Groupwork | 50 |
Special assessment rules
None
Indicative reassessment
| Task | % of module mark |
|---|---|
| Closed/in-person Exam (Centrally scheduled) | 100 |
Module feedback
Students have access to feedback on individual assessments. General cohort assessment feedback is posted on the VLE after the marking is complete.
Indicative reading
Hillier, D., Clacher, I., Ross, S., Westerfield, R. & Jordan, B., (2021), Fundamentals of Corporate Finance, 4th European Edition McGraw Hill. HCRW & J
Tricker, B. (2019), Corporate Governance: Principles, Policies and Practices,4th Edition. Oxford: Oxford University Pres
If you would like to consider other textbooks, there are a range of other finance textbooks which consider some of this material covered in this unit. These textbooks include the following.
Arnold, G. and Lewis, D. (2019) Corporate Financial Management 6th Edition, Pearson
Pike, R. and Neale, B. (2015) Corporate Finance and Investment. 8th Edition.
Watson, D. & Head, A. 2019, Corporate Finance: Principles and Practice, 8th Edition, Pearson.