Authorised by Academic Registrar, April 1996
Objectives On completion of this subject students should understand and be able to apply theories of the pricing of risky assets; have critically reviewed the methodology and empirical evidence on tests of asset pricing models; have examined issues which arise in empirical research in finance; have critically reviewed the literature on stock market anomalies; become familiar with empirical methods used to examine hypotheses about capital structure, dividend policy, agency theory, mergers, takeovers and corporate restructuring; have developed an understanding of topical empirical issues in modern finance.
Synopsis This subject introduces students to more advanced work in corporate finance. Frequent use is made of recent articles in the finance journals. Topics likely to be covered will be selected from theory and evidence on asset pricing models, capital structure, efficient markets, agency theory, option pricing theory and applications, international finance and investment appraisal.
Assessment Written (essay or assignment): 20% + Seminar participation: 30% + Examination: 50%