module specification

The Advanced Financial Management module develops core financial management knowledge and skills and prepares students to advise management and/or clients on complex strategic financial management issues facing an international organisation.

Students will be expected to demonstrate an integrated knowledge of financial management and an ability to relate the technical understanding of the subject to issues of strategic importance to the organisation. Financial managers are required to look across a range of issues which affect an organisation, its finances and stakeholders; accordingly students will be required to understand case studies focusing on a range of issues and from varying perspectives.

More specifically, this module aims:

1. To provide a detailed examination of the principles of financial management and their links with accounting, economic and organisational theory, highlighting their associations to corporate governance and stakeholder institutions;
2. To explain the role and responsibility of senior financial advisers;
3. To examine sources of finance;
4. To comprehend, analyse and apply advanced mechanisms for financial planning and investment evaluation in a variety of organisations, together with a range of financial management tools and concepts available to managers to facilitate financial decision-making;
5. To improve academic skills including academic reading and writing, oral communication, team working, analysis, critical thinking and research.

Note: If there are not sufficient student numbers to make a module viable, the School reserves the right to cancel such a module. If the School cancels a module it will use its reasonable endeavours to provide a suitable alternative.

N/A

Principles of financial management and the role and responsibility of financial management. (LO1)

Financial planning and analysis and interpretation of financial statements. (LO2)

Advanced investment evaluation: payback period, accounting rate of return, discounted cash flow methods of net present value and internal rate of return. (LO3)

Short-term and long-term financing. (LO3)

Valuation for Mergers and Acquisitions. (LO4)

Valuing Projects and Firms: Investments decision rules, fundamentals of capital budgeting. (LO4)

Financial reconstruction and business reorganisation. (LO4, LO5)

Advanced risk management techniques. (LO5)

This module will explore the theoretical and practical aspects of financial management, and provide a supportive learning environment to students for developing generic academic and employability skills.

Delivery will be based on a mix of lectures and seminar activities. The lectures will deliver the core academic and theoretical content. These will be supported by the seminar classes which will use practical case studies and other approaches to develop student knowledge understanding.  

Interactive, collaborative, cooperative, constructive and inclusive teaching approaches will be adopted and students will be encouraged to participate in group-discussions, group research assignments, structured discussions and role-play simulations, by using digital tools (i.e., whiteboard, Padlet). Students’ contributions will be encouraged within lectures and seminars. In particular, during the seminar activities a variety of teaching tools including group activities, presentations, discussion and quizzes will be adopted.

Students will be required to prepare reflections and materials for the seminars based on the lecture themes of the previous weeks. The seminars will develop student confidence in the subject discipline and generic skills such as team working, oral communication, critical thinking, research skills numeracy, IT and analytical skills. A few seminars will be dedicated to also facilitate development of Excel / spreadsheet / numeric skills in relation to relevant module topics.

The module uses Bloomberg for teaching delivery and enables students to join the elite group of Bloomberg users around the world. The module also enables the development of expertise in the use of packages such as Sage to analyse accounting and financial data.

Students will be expected to devote at least twelve or more hours per week undertaking independent reading and study. The University’s virtual learning platform will be used to provide supporting class materials, cited web sources, discussion forums and guidance for independent learning.

The module facilitates the development of key career management skills.

On successful completion of this module, students should be able to:

1. Understand and valuate the role and responsibility of the senior financial executive in meeting conflicting needs of stakeholders and recognise the role of international financial institutions in the financial management of international organizations;
2. Critically evaluate the appropriateness of financial information to meet stakeholders’ needs;
3. Evaluate potential investment decisions and assess their financial and strategic consequences;
4. Evaluate and advise on alternative corporate re-organisation and growth strategies, such as mergers and acquisitions;
5. Critically evaluate the value of financial decision-making and risk management techniques in the successful development of business strategy.

The assessment strategy for the module will comprise two elements. The in-class test for 30% will assess the students’ knowledge of financial management and planning.

The coursework (70%) will assess students’ relevant financial management skills in financing, investment and decision making. To pass the module, a student must obtain an overall 50% pass mark.

Reflective and formative assessment will take place on a weekly basis in seminars to develop theoretical, analytical, critical thinking, oral and written communication skills.

In particular, as part of the formative assessment in Week 9-10 students will be required to review a colleague’s draft of coursework. Students will have the opportunity for peer review and for receiving feedback on the coursework before the final submission.

The first summative assessment will take place in Week 7 with a 1.5-hour in-class test, which will assess student’s theoretical knowledge of LO1 and LO2 on financial management.

For the second summative assessment, students will be required to undertake an individual piece of research (minimum 1,500 words; maximum 1,700 words) into an interesting issue about financial management. This assessment will address Learning outcomes 3, 4 and 5, testing students’ ability to apply theoretical principles to real-life case studies, and evaluate students’ knowledge and understanding of the themes developed in the module. Research, reflection, critical thinking and written communication skills will be assessed.

Reading List Talis Link:

https://rl.talis.com/3/londonmet/lists/BED15B2C-F074-D6FB-873D-0D01F5E5A0C8.html?lang=en-GB&login=1

Core Reading:

Atrill P, (2017), Financial Management for Decision Makers, 8th edition, FT Prentice Hall, ISBN: 9781292134338.

Berk, J. and DeMarzo, P. (2019). Corporate Finance. Pearson, 6th edition, ISBN: 9781292304151.

Additional reading list:

Bartlett, C. A., & Ghoshal, S. (1994). Changing the role of top management: Beyond strategy to purpose. Harvard Business Review, 72(6), 79-88.

Pollitt, C. (2001). Integrating financial management and performance management. OECD Journal on Budgeting, 1(2), 7-37.

Van Deventer, D. R., Imai, K., & Mesler, M. (2013). Advanced financial risk management: tools and techniques for integrated credit risk and interest rate risk management. John Wiley & Sons.

Van Horne, J. C., & Wachowicz, J. M. (2005). Fundamentals of financial management. Pearson Education.

Academic Journals:

Journal of Corporate Finance

Financial Management

Journal of Business Finance and Accounting

European Financial Management.