England

Please tell us where you live so that we can provide you with the most relevant information as you use this website.
If you are at a BFPO address please choose the country or region in which you would ordinarily be resident.
Accessibility statement
A image to illustrate Financial strategy and governance module
This module provides the necessary theoretical, applied, and critical skills to understand corporate financial strategy and governance issues. It begins with an introduction to the meaning, significance and core principles of corporate governance, offering insights into how governance addresses fraud, ethical concerns, and impacts corporate investment and financing decisions. You’ll explore the primary methods of company valuation – asset-based valuation, market multiples and discounted cash flow. You'll examine how behavioural biases affect corporate financial policy and delve into the key principles of Islamic finance. The module also covers trends in mergers and acquisitions and the challenges associated with corporate restructuring.
The module consists of the following five units:
Unit 1 – Corporate governance

This unit provides you with an overview of corporate governance, including the meaning, significance, and the fundamental principles that underpin it. It also includes a critical examination of current theories and practices in global corporate governance. You'll be introduced to key corporate governance issues such as board diversity, board structure, executive compensation, and institutional investors. As a result, you'll gain an understanding of how governance plays a pivotal role in addressing fraud and ethical issues, as well as in shaping corporate investments and financing decisions.
Unit 2 – Ethics, fraud and governance

This unit covers the topic of ethics, identifying ethical issues and dilemmas while discussing the role of the code of ethics within an organisation. You'll be introduced to the meaning, impact, and nature of fraud, along with the reasons it is committed. The focus will be on internal fraud, as it is the most prevalent and costly form of fraud. The unit then explores how corporate governance plays a crucial role in countering internal fraud by highlighting key governance mechanisms such as ethical leadership, auditors, audit committees, and internal controls.
Unit 3 – Company valuation

This unit examines company valuation in the context of investment. It outlines various methods for valuing companies, building on the techniques from Financial markets and the financing of organisations (B815), and demonstrates how different valuation approaches are applied in different contexts. Specifically, the unit discusses the three main types of valuation methods. It begins with asset-based valuation, which uses balance sheet data to estimate value. Next, market multiples are introduced, using share prices to establish comparative benchmarks for value. Finally, discounted cash flow valuation (DCF) techniques, which use forecast data to estimate present value, are considered.
Unit 4 – Financing decisions, pay-out policy and Islamic finance

The unit introduces you to the extensive academic literature on the significance of capital structure and pay-out policy. Building on the material from Financial markets and the financing of organisations (B815), it enhances your understanding of how capital raised by companies (e.g., through equity or debt) can influence their strategic direction. The unit starts by reviewing the different securities companies use to raise capital. It then covers the Modigliani-Miller theorem, which suggests that capital structure and dividend policy do not affect firm value. You'll explore various “market imperfections” that make capital structure and pay-out policy relevant, as well as show how behavioural biases impact financing decisions. Finally, principles and trends in Islamic finance are introduced.
Unit 5 – Mergers & acquisitions and corporate restructuring

The final unit explores the waves of mergers and acquisitions (M&As) over the past decades and their impact on financial decision-making and firm value. You'll learn why firms engage in M&As and whether these transactions actually benefit different stakeholders, including shareholders, debt holders and employees. Building on earlier units covering governance and financing policies, you will examine how M&As can function as a governance mechanism. The unit also discusses corporate restructuring methods and their associated costs and benefits. Additionally, you'll explore how firms that operate in multiple lines of business face specific costs and benefits.

By completing this module, you will be able to:
This module, along with the compulsory module Financial markets and the financing of organisations (B815), will be particularly relevant if you’re working, or planning to work, in the finance sector of an organisation or in the finance division of a company, public sector entity or not-for-profit organisation. It will also benefit individuals who work, or intend to work, outside of the finance domain but wish to expand their knowledge and skills to enhance future opportunities.
Your tutor will help you with the study materials, mark and comment on your assignments, and provide advice and guidance throughout the module. You'll be able to contact your tutor by email, phone or via the forums on your module website. They’ll be in touch from the start of the module to confirm how best to contact them.
Course work includes:
We regularly review the assessments in our modules, so we may update the examination method used for this module to an in-person exam or a remotely invigilated (proctored) exam. When we are making such a change, we will make it clear on this page. If we need to make a change after you have registered, we will notify you as soon as possible. If you have additional requirements, we will support you to complete your assessments.
You'll be provided with a printed module book and have access to a module website, which includes:
You can only study this module as part of specific Open University qualifications.
B816 is a compulsory module in our:
B816 is an option module in our:
Sometimes you cannot count a module towards a qualification if you have already counted another module with similar content. To verify any excluded combinations with this module, check with an adviser before registering.
Financial strategy and governance starts once a year – in May.
This page describes the module that will start in May 2027.
We expect it to start for the last time in May 2030.
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.
You must hold a BA/BSc degree awarded by a recognised university, or equivalent. Various higher education and professional qualifications are considered equivalent to a degree. If you hold a qualification that you believe is at 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.
Although not mandatory, it is strongly recommended that you complete Financial markets and the financing of organisations (B815) before starting this module, and it is highly advisable that you are comfortable with the use of numerical methods and the use of spreadsheets. If you're unsure about these skills, we suggest you familiarise yourself with basic numerical techniques and methods before beginning the module.
You’ll also need an appropriate standard of English language comprehension to be able to work effectively at a postgraduate level. Generally, this means a 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’re unsure whether your skill level in English is adequate, you may find it helpful to look at our Skills for OU Study site.
If you have any doubt about the suitability of the module, please speak to an adviser.
Any video or podcast resources will be accompanied with transcripts and closed captions on the module website. Alternatives will also be prepared if you're unable to engage with the tutor group forums. If you use assistive technology or have a hearing or speech impairment and have concerns about accessing this type of virtual environment you can visit the system provider's website for information and contact us to discuss it before registering.
If you’re using printed materials as part of reasonable adjustments to support your studies, note that printed versions of online materials are unavailable for this module.
StartEndRegister byEngland fee
01 May 202731 Oct 202715 Apr 2027£2,075
If you study this module as part of an eligible qualification, you can apply for a postgraduate loan to support your study costs. To find out more, see Postgraduate loans in England.
Studying with The Open University can boost your employability. OU courses are recognised and respected by employers for their excellence and the commitment they take to complete. They also value the skills that students learn and can apply in the workplace.
Over 30,000 employers have used the OU to develop staff so far. If the module you’ve chosen is geared towards your job or developing your career, you could approach your employer to see if they will sponsor you by paying some or all of the fees.
You can pay part or all of your tuition fees upfront with a debit or credit card when you register for each module.
We accept American Express, Mastercard, Visa and Visa Electron.
Please note: your permanent address/domicile will affect your fee status and, therefore, the fees you are charged and any financial support available to you. The fee information provided here is valid for modules starting before 31 July 2027. Fees typically increase annually. For further information about the University's fee policy, visit our Fee Rules.
Level info