Module catalogue

FE7052 - International Corporate Finance (2021/22)

Module specification

Module approved to run in 2021/22

Module title

International Corporate Finance

Module level

Masters (07)

Credit rating for module

School

Guildhall School of Business and Law

Total study hours

200

12 hours	Assessment Preparation / Delivery
152 hours	Guided independent study
36 hours	Scheduled learning & teaching activities

Assessment components

Type	Weighting	Qualifying mark	Description
Coursework	100%		Coursework - 3000 words

Running in 2021/22

(Please note that module timeslots are subject to change)

Period	Campus	Day	Time	Module Leader
Autumn semester	North	Wednesday	Evening

Module summary

This module explores the theoretical underpinnings and empirical evidence concerning the activities of corporate finance from an international perspective. The module offers students the opportunity to develop their knowledge in a range of areas related to the international financial system, theories explaining foreign exchange rate behaviour, hedging currency risks, sources of finance for international trade and investment projects for both large and small firms, the effect on international capital structure of investment decisions, risk exposure and risk management, cross-border mergers and acquisitions, and multinational working capital management. These topics will be dealt with the overall framework in relation to international corporate activities.

The module aims to:

provide a framework for students to explore corporate strategies and decisions in an international perspective.
Offer a conceptual framework for students on corporate strategies and decisions from an international perspective.
a study on the application of relevant theories, models and empirical evidence for the analysis and evaluation of major corporate activities and decisions made by global firms.

The module uses Bloomberg for teaching delivery and assessment and enables students to join the elite group of Bloomberg users around the world.

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.

Prior learning requirements

N/A

Syllabus

International financial environment: The exchange rates regimes and international monetary system (LO1)

The foreign exchange market: international parity relations, theories explaining determinants of exchange rates, functions and types of financial markets, and their application for currency risk management (LO2)

Sources of financing for global firms: financial reports equity and debt finance through capital markets, banks and other institutions (LO3)

Sources of financing in global firms: corporate report, financing international trade, equity and debt finance through international capital markets, money markets, banks and other institutions (LO3)

Multinational working capital management: management of trade receivables, trade payables, inventories and cash (LO3)

Risk management: risk exposures (transaction, translation and economic exposures) and foreign exchange risks (LO3)

International capital structure: The costs of capital for global firms, introduction to international capital asset pricing model and its implications (LO3)

Multinational capital budgeting and investments: evaluation of investment projects and decision making (LO4)

Balance of independent study and scheduled teaching activity

Learning and teaching are structured by using a 2-hour lecture and 1-hour seminar in each week as required. The lectures will outline the key concepts, theories and models to prepare students to develop the capability to solve problems and evaluate alternative decision options. The seminars will be used by lecturer and students to discuss assigned topics on various aspects of the material covered by the module. It is expected that students will spend 12 or more hours per week outside the lecture and seminar reading assigned material, collecting data for analysis, solving problems and writing essays or preparing essay plans to consolidate their understanding of the module.

Learning outcomes

On successful completion of the module, students will be able to:

Demonstrate a clear understanding of the historical and contemporary policy and institutional issues in the international financial system and their implications for the development of the international financial architecture dealing with international business and finance.
Discuss the theoretical determinants of foreign exchange rates and the functions of currency markets and their implications for international corporate finance.
Analyse how global firms meet their funding, liquidity and risk management objectives through the use of major capital and money markets as well as international banking and finance systems.
Evaluate capital investment projects that multinational firms undertake.

Assessment strategy

Summative assessment is designed in the form of an individual coursework (3000 words) and will take place in weeks 11. The assessment examines student’s knowledge and understanding of the module content and tests students’ written communication skills. Students are required to use information from databases and/or corporate annual reports, as well as referring to academic literature to demonstrate understanding of major conceptual and practical problems. Diagnostic and formative assessment will take place on a weekly basis in seminars to develop theoretical, analytical, oral and written communication skills. This will enable additional formative feedback to be given to students before the submission of the final individual coursework.

Bibliography

Reading List Talis Link:

https://bblearn.londonmet.ac.uk/webapps/blackboard/content/launchLink.jsp?course_id=_42061_1&tool_id=_2924_1&tool_type=TOOL&mode=cpview&mode=reset

Core Reading List:

Berk, J. and DeMarzo, P. (2019), Corporate Finance, Global Edition, 5th Edition, Pearson, Harlow.

Jacque, L. L. (2019), International Corporate Finance: Value Creation with Currency Derivatives in Global Capital Markets, 2nd Edition, Wiley and Sons.

module specification