MSc Quantitative Finance
Year of entry: 2023
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Course unit details:
|Unit level||FHEQ level 7 – master's degree or fourth year of an integrated master's degree|
|Teaching period(s)||Semester 2|
|Offered by||Alliance Manchester Business School|
|Available as a free choice unit?||No|
Sources of finance; Debt and equity, Stock market listing as a source of finance.
Capital Structure, Corporate Governance, The Cash Holding Decision, The Dividend Decision, Corporate Investment Decisions.
The course unit focuses on the core issues of corporate finance: corporate financial policy, corporate governance, and corporate investment decisions. The aim of the first part is to provide an understanding (from both a theoretical and empirical standpoint) of the central decision problems in corporate finance: capital raising and capital structure. The course unit then moves on to consider the increasingly important area of corporate governance, ownership and control, and the relationship between corporate governance and firm performance. Finally, it examines the decision to hold cash, dividend policy and the literature exploring the determinants of corporate investment decisions, providing an overview of both the theoretical background underlining investment decisions in incomplete capital markets and the empirical problems of this subject.
• On completion of this unit successful students will have achieved the following learning outcomes:
• Have an understanding of the different sources of finance available to firms
• Be familiar with the IPO process, valuation of an IPO firm and the anomalies related IPOs
• Have an understanding of a variety of theoretical models of capital structure and dividend decisions
• Have knowledge of the issues involved in testing capital-structure theories and the international empirical evidence on capital structure
• Be aware of corporate governance, corporate control and managerial incentive issues in an international context and have appropriate knowledge of the international empirical evidence
• Have knowledge of the main drivers behind cash holding decisions and dividend decisions
• Have appropriate knowledge of the international empirical evidence on cash holding and dividends
• Be familiar with the issues relating to financing and investment decisions and have a sound knowledge of the existing body of international empirical evidence
• Be able to interpret and discuss case studies in corporate finance
• The methods of assessment for this unit allow students to demonstrate achievement of all intended learning outcomes.
Written Examination (100%) 2 hours
Informal advice and discussion during a lecture, seminar, workshop or lab.
Responses to student emails and questions from a member of staff including feedback provided to a group via an online discussion forum.
Written and/or verbal comments on assessed or non-assessed coursework.
Generic feedback posted on Blackboard regarding overall examination performance.
The core readings for this course unit are constituted by academic papers. A detailed list will be provided at the end of each lecture. There is one suggested book which is Berk J. and P. DeMarzo (2010), Corporate Finance (global edition), 2nd edition (the 1st edition is fine as well). Some of the suggested readings will also come from Copeland T.E., J.F. Weston and K. Shastri (2005), Financial Theory and Corporate Policy, 4th ed., Pearson Addison Wesle
|Scheduled activity hours|
|Assessment written exam||2|
|Independent study hours|
|Roberto Mura||Unit coordinator|
Informal Contact Methods