Unit information: Advanced Corporate Finance in 2021/22

Unit name	Advanced Corporate Finance
Unit code	ECONM2032
Credit points	15
Level of study	M/7
Teaching block(s)	Teaching Block 2 (weeks 13 - 24)
Unit director	Dr. Ordonez-Calafi
Open unit status	Not open
Pre-requisites	None
Co-requisites	None
School/department	School of Accounting and Finance - Business School
Faculty	Faculty of Social Sciences and Law

Description including Unit Aims

This unit aims to build on students' prior knowledge of basic issues in corporate finance to treat some more advanced theoretical and empirical research in certain corporate finance topics. These topics will include models of firms' capital structure decisions based on agency problems and information asymmetry arguments, theory and empirical work surrounding Initial Public Offerings (IPOs), corporate governance mechanisms, and models of merger and takeover activity. The unit is designed to expose the students to the current academic research in the field. Emphasis is put on critical reading, interpretation of empirical tests in light of theories and understanding of econometric techniques in applied corporate finance research. Given its nature, the unit is suitable for students considering a career in practical corporate finance or further academic work in this area.

Intended Learning Outcomes

Having successfully completed this unit students should be able to:

1. Describe the limitations of the simple Modigliani-Miller approach to corporate finance;
2. Describe and set out models that demonstrate the importance of agency issues and asymmetric information in the determination of optimal corporate capital structure;
3. Discuss the empirical work surrounding the performance of IPOs and SEOs and the theory developed to explain this evidence;
4. Discuss different corporate governance mechanisms and their role in reducing agency conflicts;
5. Provide a treatment of models aimed at explaining merger and takeover activity;
6. Critically read and interpret current corporate finance research papers, discuss the underlying theories and assess the empirical methodology.

Teaching Information

Teaching will be delivered through a combination of synchronous and asynchronous sessions including lectures, tutorials, drop-in sessions, discussion boards and other online learning opportunities

Assessment Information

This unit will be assessed by 100% exam

Resources

If this unit has a Resource List, you will normally find a link to it in the Blackboard area for the unit. Sometimes there will be a separate link for each weekly topic.

If you are unable to access a list through Blackboard, you can also find it via the Resource Lists homepage. Search for the list by the unit name or code (e.g. ECONM2032).

How much time the unit requires
Each credit equates to 10 hours of total student input. For example a 20 credit unit will take you 200 hours of study to complete. Your total learning time is made up of contact time, directed learning tasks, independent learning and assessment activity.

See the Faculty workload statement relating to this unit for more information.

Assessment
The Board of Examiners will consider all cases where students have failed or not completed the assessments required for credit. The Board considers each student's outcomes across all the units which contribute to each year's programme of study. If you have self-certificated your absence from an assessment, you will normally be required to complete it the next time it runs (this is usually in the next assessment period).
The Board of Examiners will take into account any extenuating circumstances and operates within the Regulations and Code of Practice for Taught Programmes.