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 ACFI811
Coordinator Dr S Sainani
Finance and Accounting
S.Sainani@liverpool.ac.uk
Year CATS Level Semester CATS Value
Session 2024-25 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

 6

       6

 36
Timetable (if known)              
Private Study 114
TOTAL HOURS 150

Assessment
EXAM Duration Timing
(Semester)		 % of
final
mark		 Resit/resubmission
opportunity		 Penalty for late
submission		 Notes
Examination There is a reassessment opportunity Standard UoL penalties apply Marked anonymously  2    80       
CONTINUOUS Duration Timing
(Semester)		 % of
final
mark		 Resit/resubmission
opportunity		 Penalty for late
submission		 Notes
Group assignment There is a reassessment opportunity Standard UoL penalties apply Marked anonymously  0    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. Communication skills, essential in econometrics, will be developed through the careful interpretation and guided discussion of results in practical sessions.

(S2) IT skills. IT skills will be developed through the application of techniques taught in lectures to various real and artificial data sets.

(S3) Numeracy. Numeracy skills will be developed through the application of techniques taught in lectures to various real and artificial data sets.

(S4) Problem solving. Numeracy skills will be developed through the application of techniques taught in lectures to various real and artificial data sets.

Teaching and Learning Strategies

2 hour lecture x 12 weeks
1 hour seminar x 6 weeks
1 hour group learning x 6 weeks
114 hours self-directed learning

Syllabus
 

TOPIC ONE: Agency Theory and Corporate Governance:

How Managerial Incentives Affect Financial Decisions
The Information Conveyed by Financial Decisions

TOPIC TWO: Short-term financing:

Working Capital Management
Short-Term Financial Planning
Cash and Liquidity Management
Credit Management

TOPIC THREE: Financial Distress and Bankruptcy:

Bankruptcy Costs
Financial Distress Costs and Firm Value
Debt holder – Equity holder Conflicts
Predicting Financial Distress

TOPIC FOUR Corporate restructuring and mergers and acquisitions (M&A):

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

TOPIC FIVE: Real Options:

Real vs. Financial Options
The Option to expand, Abandon, Delay and Investment Opportunity
Multiple Projects

TOPIC SIX: Corporate Valuation:

Value Management
Value Creation Metrics
Firm Value M easurement

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