ULMS Electronic Module Catalogue
The information contained in this module specification was correct at the time of publication but may be subject to change, either during the session because of unforeseen circumstances, or following review of the module at the end of the session. Queries about the module should be directed to the member of staff with responsibility for the module.
Title ADVANCED CORPORATE FINANCE
Code ECON811
Coordinator Dr G Giorgioni
Finance and Accounting
G.Giorgioni@liverpool.ac.uk
Year CATS Level Semester CATS Value
Session 2019-20 Level 7 FHEQ Second Semester 15

Pre-requisites before taking this module (other modules and/or general educational/academic requirements):
 

Modules for which this module is a pre-requisite:
 

Programme(s) (including Year of Study) to which this module is available on a required basis:
 

Programme(s) (including Year of Study) to which this module is available on an optional basis:
 

Teaching Schedule
  Lectures Seminars Tutorials Lab Practicals Fieldwork Placement Other TOTAL
Study Hours 24

 10

         34
Timetable (if known)              
Private Study 116
TOTAL HOURS 150

Assessment
EXAM Duration Timing
(Semester)		 % of
final
mark		 Resit/resubmission
opportunity		 Penalty for late
submission		 Notes
Examination There is a resit opportunity. Standard UoL penalty applies for late submission. This is an anonymous assessment. Assessment Schedule (When) :Semester 2  2 minutes.    80       
CONTINUOUS Duration Timing
(Semester)		 % of
final
mark		 Resit/resubmission
opportunity		 Penalty for late
submission		 Notes
Mid-term test There is a resit opportunity. Standard UoL penalty applies for late submission. This is an anonymous assessment. Assessment Schedule (When) :Semester 2  1 hour    20       

Aims

The aim of this module is to cover the following main areas in corporate finance: short-term corporate financing, bankruptcy/financial distress, corporate restructurings and real options. Particular emphasis will be placed on i. the role of incentives on financing decisions and ii. how financing and investment decisions interact with each other and how those decisions have implications for corporate bankruptcy, takeovers and corporate restructurings.

Learning Outcomes

(LO1) An understanding of current theoretical and empirical developments in corporate finance that enable students to understand and develop theories and policies regarding bankruptcy/ financial distress, mergers and acquisitions, corporate control and governance as well as topics related to agency theory;

(LO2) Familiarity with major empirical studies in the areas stated above;

(LO3) An ability to appreciate and critically evaluate methodologies, results and implications of research studies in the discipline.

(S1) Communication skills

(S2) IT skills

(S3) Numeracy

(S4) Problem solving skills

Teaching and Learning Strategies

Teaching Method 1 - Lecture
Description:
Attendance Recorded: No

Teaching Method 2 - Seminar
Description:
Attendance Recorded: Yes

Syllabus
 

Topic 1: Agency theory and corporate governance:

How managerial incentives affect financial decisions;
The information conveyed by financial decisions.

Topic 2: Short-term financing:

Working capital management;
Short-term financial planning;
Cash and liquidity management;
Credit management.

Topic 3: Financial distress and bankruptcy:

Bankruptcy costs;
Financial distress costs and firm value;
Debt holder – equity holder conflicts;
Predicting financial distress.

Topic 4: Corporate restructuring and mergers and acquisitions (M&A):

Rationale for M&A;
Agency theory of M&A;
Success/ failure of M&A.

Topic 5: Real Options:

Real vs. financial options;
The option to expand, abandon, delay and investment opportunity;
Multiple projects.

Topic 6: Corporate valuation:

Value management;
Value creation metrics;
Firm value measurement.

Recommended Texts
Reading lists are managed at readinglists.liverpool.ac.uk. Click here to access the reading lists for this module.