This focal area provides students with key skills required by employers in various industries. To prepare our students to function effectively in a dynamic and volatile business environment, particular focus is placed on the development of critical thinking, problem solving and research skills. An essential feature embedded in all our modules is the ability to analyse fundamental financial management questions by identifying and applying relevant theories, interpreting the findings obtained, and confidently communicating the implications thereof.

Financial management focuses on the following topics:

• Financial statement analysis

• Valuation

• Financial planning and control

• Capital budgeting

• Mergers and acquisitions

• Behavioural finance

• Financial management research

A central theme running across our academic offering is that of value(s)-based management. The emphasis on value(s) (plural) rather than value (singular) reflects our approach towards promoting long-term, sustainable value creation.

All financial management decisions, whether they deal with capital structure or capital budgeting considerations, should create value for shareholders and key stakeholders. Focus is therefore placed on integrating ethical and ESG (environmental, social and governance) considerations into conventional decision-making models. The consequences of behavioural biases are also highlighted.

Our team of colleagues consists of several dedicated researchers, whose areas of specialisation extend across some of the most pertinent topics in financial management. These include prominent researchers in the fields of corporate valuation, ESG integration and behavioural finance. As such, we ensure that cutting edge research and practical examples are continuously shared with our students by enthusiastic lecturers who are passionate about their subject.

Career possibilities:

• Financial analyst

• Financial consultant

• Financial manager

• Credit manager

• Supply chain finance analyst

• Performance analyst

• Risk manager

• Financial controller

Undergraduate subjects offered in Financial Management:

• Introduction to Financial Management 214 

  Compiling of the standardised statement of financial position, statement of profit or loss and statement of cash flows; sources of finance; the measurement and evaluation of a company’s financial position and performance with reference to the analysis of profitability, liquidity, solvency and investment potential; introduction to corporate taxation; the capital investment decision and the management of working capital with specific reference to cash, trade receivables and inventory control. 

• Corporate Financial Management 244 

  The evaluation and interpretation of corporate financial performance by means of detailed ratio analyses and sustainability considerations; share and bond valuation; discussion of the influence of dividend policy on corporate valuations; the influence of financing policy on a firm’s value; the effect of behavioural biases and heuristics on investment decisions

• Financial Planning and Control 314 

  Standardisation of published financial statements; reclassifying items from financial statements for managerial decision-making; application of financial planning process by means of financial forecasting; calculation of the sustainable growth rate; estimation of an optimal capital structure; the application of free cash flow valuations; the influence of inflation on annual financial statements. 

• Capital Investments 332 

  The application of the following financial selection measures on large capital projects: payback period method, method of the equivalent uniform annual cost, net present value method and the internal rate of return method; the impact of inflation when assessing investment projects and the calculation of the cost of capital; priority determination for multiple mutually exclusive projects. 

• Financial Management Research 352  

  Identification and formulation of financial management problems and/or opportunities; setting financial research objectives; identifying appropriate research designs; conducting secondary and/or primary research; conducting financial data analysis to achieve research objectives.

• Mergers and Acquisitions 354 

  Processes during mergers and acquisitions; financial and strategic aspects; theories; relevance of competition and other legislation; empirical information; LBOs; MBOs; defensive strategies; joint ventures and alliances; unbundling; management guidelines. 

• Co-requisite modules for third-year Financial Management modules:

  • Financial Management 214

  • Financial Management 244 or Investment Management 254

• Admission requirements

• Overall NSC average of at least 65%, excluding Life Orientation

• Mathematics 60%

• Minimum EMS language admission requirement: One of the following:

  • Afrikaans Home Language 50% or

  • English Home Language 50% or

  • Afrikaans First Additional Language 70% or

  • English First Additional Language 70%
     

More details

• Programme brochure: The brochure contains a table with all the modules covered by this degree. Download the department’s brochure here. 

• Programme information: See the Department of Business Management’s undergraduate programmes here.

• See the Calendar of the Faculty of Economic and Management Sciences here.

• Closing date for applications: 31 July.

For Financial Management subjects in the Honours programme, please refer to the Honours page.