Economics of Corporate Finance

Code

ECON4023

School

Economics

Level

4

Credits

15

Semesters

Spring UK

Summary

This module offers an introduction to the economics of Corporate Finance. It is designed to provide students with the basic theoretical background in this area that is necessary for any applied work. Emphasis is placed on the analysis of simple models and their applications. The module covers a variety of topics with substantial time devoted for covering issues directly related to the financial needs of firms, such as capital structure, credit rationing and corporate governance. The module also examines the role of financial intermediaries analysing bank failures and, consequently, the scope for banking regulations. The last part of the module looks closely at the relationship between the financial sector and the real economy thus offering the background for any applied work related to the link between financial development and economic fluctuations.

Target Students

Available for PGT and PGR students in the School of Economics. Also available for students on the MSc Financial and Computational Mathematics degree.

Classes

This module is delivered through a series of lectures.

Assessment

• 10% Coursework: 6 homework assignments
• 90% Exam (2-hour): Exam

Assessed by end of spring semester

Educational Aims

Learning Outcomes

A Knowledge and Understanding. Students should demonstrate:
A2: An understanding of advanced theoretical methods (including graphical and mathematical representations of economic ideas)
A4: An advanced knowledge of specialisms in economics, including the current state of research in that field
A5: An understanding of institutions, policies and the broader context in which specific economic analysis is applied

B Intellectual Skills. Students should be able to:
B2: Use analysis, deduction and induction to solve economic problems
B3: Apply economic theory to economic institutions and policies

Conveners

• Professor Spiros Bougheas