Special Topics in Corporate Finance and Risk Management

首頁 入學申請 Course Guide Special Topics in Corporate Finance and Risk Management
Special Topics in Corporate Finance and Risk Management
This Course Guide has been taken from the most recent presentation of the course. It would be useful for reference purposes but please note that there may be updates for the following presentation.

FIN B872
Special Topics in Corporate Finance and Risk Management



Introduction

Corporate finance covers a wide spectrum of topics including capital budgeting, capital structure, dividend policy, derivatives, and international corporate finance. FIN B872 Special Topics in Corporate Finance and Risk Management is designed to enhance students' understanding of the financial theories underlying some of these important financial decisions including merger or acquisition decisions, hedging strategies and international financial decisions. The advisory prerequisite for this course, FIN B862 Treasury and Financial Management, focuses more on how financial tools can be of use to an organization, and addresses how an organization formulates its capital structure and dividend policy. In all of these areas, financial managers are required to make many different and important decisions. These decisions demand creativity and a broad outlook on the part of the financial manager.

Effective financial managers must be team players. They also need to be at the heart of what is happening in the corporation. They must be constructively involved in the operations, marketing and overall strategy of the company. FIN B872 Special Topics in Corporate Finance and Risk Managementis designed to encompass some important issues that the financial manager may encounter and to provide an integrative view of his or her role within a firm.

Purpose of this Course Guide

This course guide gives you a general overview of the course. There are sections on:

  • course aims and learning outcomes;

  • course organization and structure listing the topics to be covered;

  • assessment methods, assignments and examinations; and

  • medium of delivery, course materials, supplementary lectures, tutorials and tutor support.

About the course

FIN B872 Special Topics in Corporate Finance and Risk Management is a five-credit postgraduate-level course. It is designed to enhance your understanding of the financial theories underlying financial decisions, including merger or acquisition decisions, hedging strategies and international financial decisions. Wherever possible and appropriate, examples and cases relevant to the Hong Kong business environment are used.

The advisory prerequisite for this course is FIN B862 Treasury and Financial Management. If you have taken courses in accounting, statistics and economics, you will also find it easier to grasp the more difficult materials.

Course aims

The course aims to equip learners with analytical tools to solve problems relating to corporate financial management. It exposes learners to in-depth analysis of some special issues including use of derivatives in risk management, corporate acquisition and restructuring, and issues arising from an international operation.

Course learning outcomes

On completion of this course, you should be able to:

  • Select the correct hedging strategies based on the requirements of the firm.

  • Analyse the benefits and problems of valuation models and apply these models to managerial control.

  • Evaluate the value, costs and sources of synergy of a merger or acquisition.

  • Assess the causes and costs of financial distress.

  • Analyse the relationship between interest rates, foreign currency exchange rates and inflation.

  • Analyse the institutional and environmental framework in which financial decisions are made.

Course overview

The following table gives a general overview of the course structure.

Unit Title Weeks Assessment activity
(end of unit)
1 Derivatives and hedging risks 3  
2 Company valuation 3 Assignment 1
3 Mergers and acquisitions 3  
4 Financial restructuring 3 Assignment 2
5 International financial management 3  
  Revision 1  
  TOTAL 16  
Course materials

Printed materials

FIN B872 Special Topics in Corporate Finance is designed to take advantage of a well-written prescribed textbook. The study units extract the important issues on the topic, provide clarification, include illustrations and present the concepts in a systematic and organized format. Although the textbook is written more for the business environment in North America, the theories can be applied across boundaries by keeping in mind the assumptions and limitations underlying those theories.

Readings

You may be instructed in the study units to read articles or other supplementary materials. These will be available online or provided as hard copies at the backs of the study units.

E-Library E-Reserve readings

You may be instructed to read articles in the E-Library E-Reserve. To read these items, go to the OUHK E-Library and click on 'E-Reserve'. Log in, click 'Accept/Agree' on the Copyright Restrictions page, fill in the 'Course Code' box, and click 'Search'.

Set textbooks

There is one compulsory text:

Ross, S A, Westerfield, R W, Jaffe, J, Lim, J, Tan, R and Wong, H (2015) Corporate Finance, Asia Global edn, McGraw-Hill/Irwin.

Reading texts

Arnold, G (2013) Corporate Financial Management, 5th edn, Pearson.

Brealey, R A, Myers, C M and Allen, F (2014) Principles of Corporate Finance, 11th edn, New York: McGraw-Hill.

Equipment required

You are recommended to invest in a financial calculator such as the Texas Instruments BA II Plus Professional or Casio FC100. This will aid in time value calculations. For details of the approved models of calculators, please refer to the 'List of approved calculators for August 2009 exams' from the Registry. Models which do not appear on the list or do not bear the 'HKEA/HKEAA Approved' label are NOT allowed in examinations. May I also remind you that Casio FC200, Casio FC100V and Casio FC200V are NOT allowed in exams.

Access to a personal computer loaded with Microsoft Excel for Windows is highly recommended.

Course assessment

You will be assessed on your ability to grasp key concepts of corporate finance. In particular, you will be tested on the application of concepts and theories to practical problems.

Self-assessment

In each unit, there are self-test questions. They range from prompts designed to help you check that you understand a new concept to substantial tasks designed to consolidate your learning of a major section of the unit. It is advisable to work through these questions on your own before you check against the answers provided.

Assignments

Tutor-marked assignments (TMAs) are in the assignment file. You do your assignments at home and mail them to your tutor for marking. There are two compulsory assignment exercises, all equally weighted. This continuous element accounts for 40% of the total course marks.

Each assignment includes problem sets and/or mini-cases.

How to submit assignments

You must use Microsoft Word and Microsoft Access to prepare the TMAs, and submit the TMAs via the Online Learning Environment (OLE). All assignments must be uploaded to the OLE by the due date.

Failure to upload a TMA in the required format to the OLE may result in the score of the TMA being adjusted to zero.

TMA extension policy

The assignment policy of the University as stated in the Student Handbook should be observed. Students are required to submit assignments for a course in accordance with the dates communicated by the course coordinator. Students may apply for a submission extension on the grounds of illness, accident, disability, bereavement or other compassionate circumstances.

Applications for extensions of up to seven days should be submitted to the tutor. The tutor shall consider valid and unexpected emergencies on an individual basis. Normally, documented proof of the extenuating circumstances is not required for extensions of up to seven days. The tutor shall decide and advise the student of the revised date for submission.

For extensions of over seven days, students should note the following:

  1. If students require an extension of more than seven days on the grounds of illness, accident, disability, bereavement or other compassionate circumstances, they are required to complete an 'Application Form for Assignment Extension over seven days' and submit it to the Course Coordinator.

  2. Supporting documents must be submitted along with the application for extension of over seven days to justify the claim.

  3. Applications for extension should normally be lodged before or on the due date.

  4. Applications are considered by:

    • the Course Coordinator for extensions of 8 to 21 days; and

    • the Dean for extensions of over 21 days.

After an assignment is submitted via the OLE, it is your responsibility to check that the assignment has been successfully submitted. Extension applications due to any problem with uploading will not be accepted. The University cannot accept any responsibility for assignments that are not received by your tutor due to any problem with submission via the OLE. As a precaution, you are advised to keep a copy of each assignment you submit.

According to the University's policy, no extension of the due date will be allowed for the final TMA. This policy will be strictly enforced. Any late submission of the final TMA will result in the score of the TMA being adjusted to zero.

Examination

There will be a three-hour final examination, which will account for 60% of the total course assessment. The paper will cover materials from all units. Before the final examination, OUHK will send you a copy of the sample final examination.

Assessment type Marks
Assignments  
Assignment 1 20%
Assignment 2 20%
Examination  
Final Examination 60%
Total 100%

Remember that your final result in this course depends on your performance in both continuous assessment (TMAs) and the examination. In order to pass the course, you need to pass both the continuous assessment and the examination. For more information on the University's policies on assignments and examinations, please refer to Section 7 'Assignments and Examinations' in the OUHK Student Handbook.

Tutors and tutorials

Tutors

At the start of the course, you will be informed of your course tutor. Much of your communication with the university will be with him or her. The role of your tutor includes grading of your assignments on a timely basis, guiding your study throughout the course and assisting you with any difficulties that may arise in your studies. You are strongly advised to keep a copy of all assignments you send to your tutor so that you can communicate more clearly on any problems or questions you have about your assignments.

If there are any points that you would like your tutor to cover in the tutorial, please let him or her know in advance. Your tutor is also there to help you with individual problems associated with your studies.

Supplementary lectures/tutorials

There will be three three-hour supplementary lectures and five two-hour tutorials. They may include group analysis of case studies and preparation for and feedback on TMAs.

Day school

This course makes use of a Day School. During the Day School, teaching will consist of a combination of tutorials, case studies, and group work. The case studies will cover a range of examples of financial choices and dilemmas, taken from public and private sector organizations. There should be plenty of opportunity to gain extra tutorial help on more difficult topics, as well as the enriching experience of discussing strategy with students from different backgrounds

Online Learning Environment

This course is supported by the Online Learning Environment (OLE). You can find course material and the latest course information from the OLE. Through the OLE, you can also communicate with your tutor, the Course Coordinator as well as fellow students. For details about the OLE and how to access it, please refer to the Online Learning Environment User Guide.

Conclusion

FIN B872 Special Topics in Corporate Finance covers some important financial decisions that corporate managers may encounter, and provides theories underlying such financial decisions that financial managers should have.

Each unit of study starts with a brief overview of the topic's basic framework and then advances to more rigorous materials that provide you with a complete picture of the topic in question.

A note about the developer of this course

Dr Ruth Tan is presently a Senior Lecturer in the Department of Finance and Accounting, Faculty of Business Administration, The National University of Singapore. She teaches Business Finance, Financial Markets and Financial Management at the undergraduate and graduate level. She was named one of the university's best tutors and lecturers by the students in 1995, 1996, 1997 and 1998. Dr Tan is also currently Director of the Accounting and Finance Executive Program, which conducts training programmes for middle managers, senior managers as well as chief executive officers. She has conducted in-house training programmes for multinational organizations such as Ikea. In addition, she has consulted for several corporations including BP Asia Pacific, Caltex, Singapore Petroleum, Shell and Mobil.

Deferment of studies

If you wish to defer your studies of this course until a later date, you should apply for deferment of studies. For the regulations governing deferment of studies, please refer to Section 14, 'Regulations for Admission, Registration and Maintenance of Status', in your Student Handbook. If you have applied for deferment of studies you should continue with your studies of this course and submit the required assignments until formal approval is given by the University. Should you have difficulties in submitting an assignment, you are advised to liaise with your Course Coordinator and apply for a TMA extension. Students who have been granted deferment of studies will not be allowed to submit TMAs due before the date that their application for deferment of studies is received by Registry.

About the School of Lee Shau Kee Business and Administration

Click here and view the Lee Shau Kee School of Business and Administration.