Run by Bangor Business School

15.000 Credits or 7.500 ECTS Credits

Organiser: Prof Aziz Jaafar

The module provides an introduction to corporate finance. This module aims to: o To enable students to develop a critical understanding of the role of the financial manager and the key tasks that they undertake; o To enable students to understand, investigate and determine how companies achieve the best mix of funds and make dividend decisions; o To develop students’ critical comprehension of: rates of return; how risk management relates to corporate finance; capital markets and the suitability of types of instruments that are available to them. o To develop a depth of knowledge and critical understanding of the key objectives of financial management. o To enhance students’ command of how capital structure decisions can be made and how these decisions may be critically evaluated.

Corporate finance is a key management activity with a broad range of decisions to address. The understanding of the financial manager’s key decisions forms the heart of this module with emphasis on the selection of profitable investments, utilising financial instruments, choosing the best mix of funds, risk and dividend policy. The importance of cash flow and the theories underpinning dividend decisions are emphasised. Students will also gain an understanding of the different types of investment and the returns expected by investors. The module also examines the concept of risk, moving to a review of the nature of capital markets and the nature of the instruments issued and traded within them.

good

B- to B+ (60-69%): Very good performance Most of the relevant information accurately deployed. Good grasp of theoretical/conceptual/practical elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Evidence of the use of creative and reflective skills.

Understands most but not all o Evidence of background study o Focussed answer with good structure o Arguments presented coherently o Mostly free of factual errors o Some limited original interpretation o Well known links between topics are described o Problems addressed by existing methods/approaches o Good presentation with accurate communication

excellent

Excellent standard: 70+ An outstanding performance, exceptionally able. The relevant information accurately deployed. Excellent grasp of theoretical/conceptual/practice elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Strong evidence of the use of creative and reflective skills.

threshold

c- to c+ (50-59%): marginal failing yet compensatable work No major omissions or inaccuracies in the deployment of information/skills. Some grasp of theoretical/conceptual/practical elements. Integration of theory/practice/information present intermittently in pursuit of the assessed work's objectives.No major omissions or inaccuracies in the deployment of information/skills. Some grasp of theoretical/conceptual/practical elements. Integration of theory/practice/information present intermittently in pursuit of the assessed work's objectives.• Knowledge of key areas/principles only; • Weaknesses in understanding of main areas; • Limited evidence of background study; • Answer only poorly focussed on question and with some irrelevant material and poor structure; • Arguments presented but lack coherence; • Several factual/computational errors; • No original interpretation; • Only major links between topics are described;

1. Critically assess the importance of corporate finance in a contemporary context

2. Critically evaluate the subject specific roles, features and relationships within and between firms.

3. Question, critically assess and apply apposite banking and finance theory. Critically evaluate and appropriately apply alternative strategies and tools involved in banking and/or finance.

4. Develop a questioning and evaluative understanding of financial services' characteristics and where these services are appropriately and ethically employed.

5. Appropriately apply and critically evaluate the veracity of different strategies and tools used within risk management.

6. Demonstrate the ability to make informed judgements and decisions in the context of banking and financial markets;

		Hours
Private study	This module is to be delivered in blended learning format. Students will receive a detailed study pack comprising three units of self study. There will be mandatory periods of asynchronous online teaching together with online virtual workshops. These will be supplemented by face to face teaching at the Bangor campus at the end of semester. Students will be expected to work together in online groups on pre-assigned topics.	141
Lecture	At least 5 hours of lectures provided on line and some lectures also provided in the class room for those students attending the bi-annual teaching sessions at the management centre - all lectures are recorded. These lectures are also supplemented by vidoes introducing and summarising the different elements of the module which total to a further hour of discussion	6
Seminar	Three seminars of one hour are provided through the web-ex system. Three seminar web-ex sessions are provided to allow students to engage with the materials in a live internet based session over the Web-ex platform this is designed to encourage student interaction and discussion of study materials and module aims.	3

• Literacy - Proficiency in reading and writing through a variety of media
• Numeracy - Proficiency in using numbers at appropriate levels of accuracy
• Self-Management - Able to work unsupervised in an efficient, punctual and structured manner. To examine the outcomes of tasks and events, and judge levels of quality and importance
• Exploring - Able to investigate, research and consider alternatives
• Information retrieval - Able to access different and multiple sources of information
• Critical analysis & Problem Solving - Able to deconstruct and analyse problems or complex situations. To find solutions to problems through analyses and exploration of all possibilities using appropriate methods, rescources and creativity.
• Management - Able to utilise, coordinate and control resources (human, physical and/or financial)
• Argument - Able to put forward, debate and justify an opinion or a course of action, with an individual or in a wider group setting
• Self-awareness & Reflectivity - Having an awareness of your own strengths, weaknesses, aims and objectives. Able to regularly review, evaluate and reflect upon the performance of yourself and others

• knowledge of theories and empirical evidence concerning financial management, risk and the operation of capital markets (in cases of degrees with significant finance content).
• Abstraction. From the study of economic principles and models, students see how one can abstract the essential features of complex systems and provide a useable framework for evaluation and assessment of the effects of policy or other exogenous events. Through this, the typical student will acquire proficiency in how to simplify while still retaining relevance. This is an approach that they can then apply in other contexts, thereby becoming more effective problem-solvers and decision-makers.
• Analysis, deduction and induction. Economic reasoning is highly deductive, and logical analysis is applied to assumption-based models. However, inductive reasoning is also important. The development of such analytical skills enhances students' problem-solving and decision-making ability.
• Quantification and design. Data, and their effective organisation, presentation and analysis, are important in economics. The typical student will have some familiarity with the principal sources of economic information and data relevant to industry, commerce, society and government, and have had practice in organising it and presenting it informatively. This skill is important at all stages in the decision-making process.
• An appreciation of the nature of the contexts in which finance can be seen as operating, including knowledge of the institutional framework necessary for understanding the role, operation and function of markets and financial institutions (e.g. the economic, legal, regulatory and tax environment, both national and international; the firm; the capital markets and the public sector).
• A knowledge of the major theoretical tools and theories of finance, and their relevance and application to theoretical and practical problems (e.g. concept of arbitrage and examples of its use; financial mathematics and capital budgeting criteria; informational efficiency; optimal risk sharing; portfolio theory; asset pricing models and the valuation of securities; cost of capital; derivative pricing; risk management; information asymmetry; principal agency relationships; signalling; Fisher separation and capital budgeting criteria; behavioural finance; term structure and the movement of interest rates; determination of exchange rates and financial intermediation).
• An ability to interpret financial data including that arising in the context of the firm or household from accounting statements and data generated in financial markets. The interpretation may involve analysis using statistical and financial functions and procedures such as are routinely available in spreadsheets (eg Microsoft Excel) and statistical packages. It may assume the skills necessary to manipulate financial data and carry out statistical and econometric tests (e.g. estimation and interpretation of asset pricing models; financial modelling and projections; event studies and residuals analysis; elements of time series analysis, such as serial correlation mean reversion, and stochastic volatility).
• An understanding of the relationship between financial theory and empirical testing, and application of this knowledge to the appraisal of the empirical evidence in at least one major theoretical area. The appraisal should involve some recognition of the limitation and evolution of empirical tests and theory (eg the efficient markets hypothesis; anomalies; pricing of derivatives and other securities; bond portfolio management; exchange rates; raising capital and capital structure).
• An understanding of the financing arrangements and governance structures of business entities, and an appreciation of how theory and evidence can be combined to assess the effectiveness and efficiency of such arrangements (e.g. decisions as to sources of finance and financial structure; the pricing of corporate securities; the market for corporate control; corporate governance structures and mechanisms; financial planning and international dimensions of finance).
• Research: the ability to analyse and evaluate a range of business data, sources of information and appropriate methodologies, which includes the need for strong digital literacy, and to use that research for evidence-based decision-making.
• Numeracy: the use of quantitative skills to manipulate data, evaluate, estimate and model business problems, functions and phenomena.
• Articulating and effectively explaining information.
• Conceptual and critical thinking, analysis, synthesis and evaluation.
• Self-management: a readiness to accept responsibility and flexibility, to be resilient, self-starting and appropriately assertive, to plan, organise and manage time.

Reading list

Study Guides

Compulsory in courses:

• N3BN: MBA Chartered Banker year 1 (MBA/CBDL)