The finance manager in modern organisations, in addition to financing decisions, is also required to undertake investment decisions. This module provides theoretical and analytical knowledge required in making financial policy decisions on what projects and other business activities a firm should invest finance in. Issues of corporate governance, ethics and disclosure of information are explored, and the emerging field of Islamic finance is introduced by tracing its origins, scope and implications for financial decisions in a global economy.
What you will study
This module aims to equip you with the necessary theoretical, applied and critical skills needed to take financial management responsibilities within an organisation. The first part of this module will provide you with theoretical and analytical knowledge required to decide about investing in projects, acquiring other business and about other investment decisions. The second part of the module will acquaint you with the issues of corporate governance, ethics and disclosure of information which are the heart of responsible financial management in our era. The third part of the module explores the emerging field of Islamic finance tracing its origins, scope and implications for financial decisions in a global economy.
The following are the main topics covered in this module:
- Project evaluation techniques including Net Present Value, Profitability Index, Internal Rate of Return, and Payback Method
- Company valuation
- Mergers and acquisition
- Corporate governance and disclosure in national and international contexts
- Models of corporate governance and stakeholder perspectives
- Islamic finance
It will enable you to:
- gain knowledge and understanding of the fundamentals of financial analysis and corporate finance theory
- critically assess alternative methods for valuing companies, prepare and evaluate financial projections of projects and carry out sensitivity analysis
- analyse and interpret financial statements and carry out valuation of companies
- understand the implications of corporate governance, agency theory and the related role of stakeholders.
- understand quantitative finance and its practical applications to project appraisal, company valuation, methods and risk management
- understand the core features of Islamic finance
Vocational relevance
This module together with the earlier compulsory module Introduction to corporate finance will be of particular interest to you if you are working, or planning to work, in the finance sector of an organisation or in the finance division of a company or public sector/not-for-profit organisation. It will also benefit individuals who work, or intend to work, outside of the finance domain but who wish to expand their knowledge and skills in order to increase future opportunities.
Entry
This is the second module in our Open University Business School MSc in Finance and therefore you must hold a BA/BSc degree awarded by a recognised university, or equivalent. Due to the defined study pattern for this qualification you must study Introduction to corporate finance (B858) before taking this module.
Various higher education and professional qualifications are considered equivalent to a degree. If you hold a qualification that you believe is an equivalent level to a UK degree you should contact us. The Open University Business School Masters Programme Committee is responsible for judging whether applicants’ qualifications meet the requirements for admission.
You will also need an appropriate facility in English language, sufficient to be able to work effectively at postgraduate level; generally this means capability equivalent to an International English Language Test System (IELTS) score of 6.5. To assess your English language skills in relation to your proposed studies you can visit the IELTS website. If you think either of these possibilities may apply to you, please speak to an adviser.
It is strongly recommended that you are comfortable with the use of numerical methods and use of spreadsheets. If you are unsure about these skills we suggest you familiarise yourself with illustrative numerical skills and methods prior to study. To help you decide whether you are ready, you may want to try this diagnostic quiz.
If you have any doubt about the suitability of the course, please speak to an adviser.
Qualifications
B859 is a compulsory module in our:
B859 is an optional module in our:
Excluded combinations
Sometimes you will not be able to count a module towards a qualification if you have already taken another module with similar content. To check any excluded combinations relating to this module, visit our excluded combination finder or check with an adviser before registering.
If you have a disability
This module is delivered online and time spent using a computer and the internet will therefore be extensive. Written transcripts of any audio components are available, as are printable versions of the online text-based material. Some online material may not be available or fully accessible using a screen reader (and mathematical and scientific materials may be particularly difficult to read in this way). Alternative formats of the study materials may be available in the future.
Study materials
What's included
An extensive variety of specially written resources presented in different media (print and online) and designed exclusively for this module. Audio-visual material, published articles, case studies and access to The Open University library.
Computing requirements
You’ll need broadband internet access and a desktop or laptop computer with an up-to-date version of Windows (10 or 11) or macOS Ventura or higher.
Any additional software will be provided or is generally freely available.
To join in spoken conversations in tutorials, we recommend a wired headset (headphones/earphones with a built-in microphone).
Our module websites comply with web standards, and any modern browser is suitable for most activities.
Our OU Study mobile app will operate on all current, supported versions of Android and iOS. It’s not available on Kindle.
It’s also possible to access some module materials on a mobile phone, tablet device or Chromebook. However, as you may be asked to install additional software or use certain applications, you’ll also require a desktop or laptop, as described above.
Teaching and assessment
Support from your tutor
Your tutor will help you with the study material, mark and comment on your assignments and provide advice and guidance. You will contact your tutor by email, telephone or via your tutor group forum on the module website.
Contact us if you want to know more about study with The Open University before you register.
Assessment
The assessment details for this module can be found in the facts box above.
You must use the online eTMA system to submit your tutor-marked assignments (TMAs).
Future availability
Financial strategy: valuation, governance and ethics starts once a year – in May. This page describes the module that will start in May 2022 when it is expected to start for the last time. A replacement module is planned for May 2023.
Regulations
As a student of The Open University, you should be aware of the content of the academic regulations which are available on our
Student Policies and Regulations website.