• FNCE3004
  • Corporate Finance

  • Credits (ECTS): 10
  • Accounting and Finance

Modules are delivered
as part of a programme.
To apply for the
see the DIT website

Module Description

The course introduces students to financial theory and traces the development of financial theory from the academic literature. They module is structured as a readings based course where students are expected to engage with the academic literature that underpins our knowledge of finance. The arguments presented in the literature will be analysed from the perspective of the practitioner with a focus on areas relevant to corporate finance. The aim of this module is to facilitate students in developing a solid understanding of the theoretical concepts underpinning the financial markets and the financial environment in which firms operate. In addition students should understand the importance of finance in company decision making and its place in the broader business mix. The module also aims to develop the self study skills of students with a view to preparing them to carry out critical reviews of literature in the financial area.

Indicative Syllabus

Corporate Governance
The role of the finance manager in the decision making process. Corporate goals, the principal agent conflict and shareholder wealth maximization. Systems of corporate governance in different settings and its importance in emerging markets.
Finance Vehicles
An examination of Debt, Equity and Hybrid sources of finance from the perspective of both the issuer and the user. Issues relating to cost, control and the risk return framework.
Market Efficiency
Efficient Markets Hypothesis, Empirical Evidence including Value vs. Growth investment, Contrarian investment and the case for a New Finance.
Valuation and Performance
Financial analysis. Appraising firm performance and valuation. Traditional and modern methods including ratio analysis, shareholder value analysis and economic value added. Examining financial reports.
Capital Structure and Dividend Policy
The importance of capital structure and its place in financial strategy and decision making. Whether an optimal capital structure exists and whether it affects firm value. The static trade off and pecking order theory propositions. The relationship between earnings and dividends. Dividends and capital structure, firm ownership and whether dividend decisions can affect the value of the firm.
The Market for Corporate Control
Mergers and Acquisitions and links between ownership and control. Corporate diversification.
Portfolio Theory
Incorporates modern portfolio theory, asset pricing, CAPM, APT and issues relating to market efficiency.
Risk Management
Basic derivative securities. Hedging. Risk metrics including Value at Risk.
Finance and Strategy
Examines the relationship between financial strategy and whether it can affect firm value.
Behavioural Corporate Finances
Behavioural foundations, Valuation, Capital Budgeting, Perceptions about Risk and Returns, Inefficient Markets and Corporate Decisions, Capital Structure, Dividend Policy, Agency Conflicts and Corporate Governance, Group Process, Mergers and Acquisitions.

Total Contact Teaching Hours:96

Please note that the catalogue is provided as a guide to modules in DIT. Not all modules listed will necessarily be offered every year and new modules may also be added. Information subject to change. For detail on specific programmes/modules please contact the relevant School directly.