Skip to main navigationSkip to main content
The University of Southampton

ECON6030 Principles of Corporate Finance

Module Overview

The module will cover the fundamental concepts and tools underlying corporate finance.

Aims and Objectives

Module Aims

To equip students with the fundamental concepts and tools underlying corporate finance. It provides students with a deeper understanding of the financial decisions faced by corporations, and to investigate how these decisions can enhance or destroy firm value.

Learning Outcomes

Learning Outcomes

Having successfully completed this module you will be able to:

  • Acquire an understanding of corporate financial objectives, the dimensions of corpo rate financial decision making
  • Understand why financing decisions fundamentally determine the value and cost of capital of the firm.
  • Understand how the presence of real - life distortions affect the financing decisions of firms.
  • Comprehend how decisions of firms affect shareholders and investors.
  • Study how informational issues distort financing decisions.


Part I. Introduction to Risk and measures of Risk. Part II. Capital Structure (Financing and project valuation) • The Modigliani-Miller Propositions • Capital Structure and Dividend Policy: failures of the Modigliani-Miller propositions • Corporate Finance Under Asymmetric Information Part III. Payout Policy • The Modigliani-Miller Propositions revisited • Payout policy theories and the presence of distortions • Signalling Part IV. Determinants of Borrowing capacity and early performance monitoring. • Determinants of Borrowing Capacity, Boosting the Ability to Borrow • Monitoring in corporate finance Part V. Finance Papers

Learning and Teaching

Teaching and learning methods


Independent Study200
Total study time200

Resources & Reading list

Other course information available via Blackboard. 

The theory of Corporate Finance. 

Principles of Corporate Finance. 



MethodPercentage contribution
Coursework 10%
Exam  (3 hours) 90%


MethodPercentage contribution
Exam 100%
Share this module Share this on Facebook Share this on Twitter Share this on Weibo

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.