Financial Management

programme structure

The MSc in Business Administration programme at the University of Twente is a one-year programme (60EC). In addition to the three core courses (15EC), the specialization in Financial Management consists of four courses (20EC) and a Master’s thesis (25EC).



What will you learn?

The objective of this course is to provide students with an in-depth understanding of a few corporate financial management decisions. Upon completion of this course, students should be able to:

  •  explain the relationship between risk and return, as well as the principle of modern portfolio theory;
  • estimate a firm’s cost of capital and when to use (or not to use) it;
  • distinguish between different forms of efficient capital markets and assess empirical evidence;
  • evaluate alternative methods of raising capital (e.g. equity, debt) and the significance of capital structure and corporate dividend policies; and
  • analyse the causes and effects of mergers and acquisitions.


The course teaches students the modern principles of corporate finance and their application to important financial management decisions. In particular, the course provides insight into the relevant theoretical concepts underlying selected financing decisions of firms, along with the impact of these decisions on the value of the firm.


What will you learn?

This course provides students with the essential theories, knowledge and skills needed in order to make proper financial decisions for entrepreneurial firms. Upon completion of this course, students should be able to:

  • understand and assess the major components of a business plan;
  • identify the advantages and disadvantages of various legal and other issues facing venture enterprises;
  • identify and assess factors relating to successful ventures;
  • assess the relevance and meaning of various sources of financing for new business ventures;
  • understand and apply principles of venture valuation;
  • describe how a successful entrepreneur can harvest or exit a venture;
  • know how to resolve financial distress situations.


This course teaches students about such topics as defining enterprise opportunities; legal and organizational matters; preparing a business plan; assessing the financial and other performance of a venture; valuing business ventures; structuring financing; and developing exit and turnaround strategies.

investment & RISK MANAGEMENT

What will you learn?

This course provides students with a fundamental understanding of the valuation of financial assets and the various financial risks faced by national and international companies. It also prepares them to take informed decisions in the process of managing different types of financial risks. Upon completion of this course, students should be able to:

  • describe the concept of risk management and explain the hedging motives of firms;
  • apply the fundamental models in valuing financial assets (e.g. stocks, bonds and financial derivatives);
  • identify various financial risks (e.g. interest-rate risk, foreign-exchange risk) faced by international companies and analyse how these risks can be managed;
  • demonstrate a good knowledge of financial derivatives (e.g. futures, forwards, swaps and options) and the organization of derivatives markets; and
  • analyse how to use financial derivatives for risk management. 


This course introduces various financial risks faced by national and international firms and the strategies used to manage these risks. The course starts with the concept of risk management, and continues with the principle of valuing financial assets and the application of this principle to financial derivatives (e.g. forwards, futures, options and swaps). Afterwards, the usage of financial derivatives is explained in hedging interest rate risk and foreign exchange risk. Students will also learn about the academic research and practice in financial risk management.

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