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Department of Financial and Management Studies (DeFiMS)

Financial strategy

Course Code:
151030012
Unit value:
0.5
Year of study:
Year 3 of 3 or Year 4 of 4
Taught in:
Term 1

The course is designed to enable students to learn the nature of financial strategy in market economies and discuss its role within different types of market economies. It aims to teach the main techniques used in the different financial decisions facing firms in formulating financial strategy, to ensure that students can apply them, critically evaluate them, and assess the problems experienced in firms’ use of them.

This course is a prerequisite for any of the following Term 2 courses:

  • Finance in China 151030013
  • Finance in Japan and Korea 151030021
  • Finance in the Middle East and North Africa 151030022

Objectives and learning outcomes of the course

At the end of this course students should be able to:

  • Understand the role of financial choices in corporate strategy;
  • Understand the principles underlying financial decision making in firms;
  • Evaluate the principles in the light of evidence on firms’ financial strategies and decisions;
  • Apply principles to financial strategy in actual case studies;
  • Compare firms’ financial strategies across countries and historic periods;
  • Critically discuss the problems and limitations of financial strategy techniques.

Method of assessment

This course is assessed by 30% written coursework and 70% by one two hour examination

Suggested reading

  • Brealey R and Myers S., Principles of Corporate Finance, 10th edition, McGraw Hill, 2011.
  • Hillier, D, M Grinblatt, and S Titman, Financial markets and corporate strategy (European Edition), 2nd edition, Mc Graw Hill, 2011.
  • Koller T, M Goedhart, and D Wessels, Valuation: Measuring and Managing the Value of Companies (University Edition), 5th edition, Wiley, 2010.