Economics of Corporate Finance

The details
Colchester Campus
Undergraduate: Level 5
Monday 13 January 2020
Friday 20 March 2020
20 September 2019


Requisites for this module
EC111 or IA151 or IA153



Key module for

BA L100JK Economics,
BA 5A84 Financial Economics (Including Placement Year),
BA L111 Financial Economics,
BA L118 Financial Economics (Including Foundation Year),
BA L195 Financial Economics (Including Year Abroad),
BSC 0Q64 Financial Economics (Including Placement Year),
BSC L114 Financial Economics,
BSC L117 Financial Economics (Including Foundation Year),
BSC L194 Financial Economics (Including Year Abroad),
BA L108JK Management Economics,
BA LN10 Business Economics,
BA LN11 Business Economics (Including Year Abroad),
BA LN12 Business Economics (Including Placement Year)

Module description

This course focuses on developments in monetary policy, and its effects, in the context of continuing financial innovations including new forms of transaction media. After an overview of financial systems, including commercial banking, the course examines the nature and implications of financial innovations with emphasis on developments since the 1980s. Commercial banks' asset and liability management is explored with an emphasis on the control of credit and the transmission of monetary policy. The role of central banks in the supervision of the financial sector and the formulation of monetary policy is studied in various institutional contexts, normally including the European Central Bank and the U.S. Federal Reserve Board as well as the Bank of England.

Module aims

The aim of the course is to introduce students to the evolution of central and commercial bank practices and the institutional environment within which the banking sector operates. Upon successful completion of the course students will have gained an appreciation of the main functions of financial intermediaries in a changing world. In addition, students will have improved their skills in the critical evaluation of existing literature in preparation of a term paper.

Module learning outcomes

The module offers the following employability skills. Academic skills are improved through essay writing (in particular the term paper) and mathematical problem solving. In particular the term paper will improve students' abilities to research and gather information, as well as communicating their ideas and improving their time management.

Module information

Compulsory for:
Year 2 students on BA in Financial Economics and BSc in Financial Economics

Learning and teaching methods

1 x 2-hour lecture and one class per week in one term


This module does not appear to have a published bibliography.

Assessment items, weightings and deadlines

Coursework / exam Description Deadline Weighting
Coursework Test
Exam 120 minutes during Summer (Main Period) (Main)

Overall assessment

Coursework Exam
50% 50%


Coursework Exam
50% 50%
Module supervisor and teaching staff
Lectures: Dr Luc Leruth & Ariel Sun / Class: Ariel Sun
For further information, send an email message to



External examiner

Prof Aditya Goenka
The University of Birmingham
Available via Moodle
Of 34 hours, 32 (94.1%) hours available to students:
2 hours not recorded due to service coverage or fault;
0 hours not recorded due to opt-out by lecturer(s).


Further information

Disclaimer: The University makes every effort to ensure that this information on its Module Directory is accurate and up-to-date. Exceptionally it can be necessary to make changes, for example to programmes, modules, facilities or fees. Examples of such reasons might include a change of law or regulatory requirements, industrial action, lack of demand, departure of key personnel, change in government policy, or withdrawal/reduction of funding. Changes to modules may for example consist of variations to the content and method of delivery or assessment of modules and other services, to discontinue modules and other services and to merge or combine modules. The University will endeavour to keep such changes to a minimum, and will also keep students informed appropriately by updating our programme specifications and module directory.

The full Procedures, Rules and Regulations of the University governing how it operates are set out in the Charter, Statutes and Ordinances and in the University Regulations, Policy and Procedures.