Credit Hours:

Contact Hours:

This is a 3-credit course, offered in a 14-week format. The number of hours per week that you can expect to spend on each course will vary based upon the weekly coursework, as well as your study style and preferences. You should plan to spend 8-12 hours per week in each course reading materials, participating in discussion questions, completing critical thinking assignments, quizzes, and conducting research.

Course Description:

This course presents the principles of finance from both a technical and a practical perspective that prepares the student to understand the financial health of an organization, and the financial-related considerations for enhanced organizational performance. For managerial decision-making purposes, students will gain an understanding of basic financial concepts of shareholder value; value-based financial management; financial statement analysis; risk and return on financing and investment activities; cost of capital, capital budgeting and capital structure; and working capital management.

Students will work to understand the core principles of financial management through executing quantitative financial calculations, analyzing financial statements, evaluating investment and opportunity risk and return, and applying financial management principles to real-life organizations. Students will synthesize course materials to consider managerial decision options for enhanced organizational and stakeholder value in for-profit and non-profit entities, and for their own personal finance decision-making needs.

The goal of this course is to provide students as leaders and managers of organizations with an overview of financial management, principles, theories, concepts, analytical tools, and practical applications for the enhancement of organizational performance and stakeholder value, and for their own personal finance decision-making needs.

Week #

Readings

Assignments

Chapter 1 in Foundations of Finance – The Logic

and Practice of Financial Management Saudi Vision 2030 Document. (2017). https://vision2030.gov.sa/sites/default/files/rep ort/Saudi_Vision2030_EN_2017.pdf

Denning, S. (2019, August 19). Why maximizing shareholder value is finally dying. Forbes.

https://www.forbes.com/sites/stevedenning/20

19/08/19/why-maximizing-shareholder-value-is

-finally-dying/#23bdf8516746

Faraj, M. (2019). The State as a shareholder: A study of partial privatization and its impacts on corporate governance in the Kingdom of Saudi Arabia. Journal of Sharia & Law, 2019. https://ssrn.com/abstract=3475404

World Bank Group. (2019). Saudi Arabia – Doing Business 2020. https://www.doingbusiness.org/content/dam/d oingBusiness/country/s/saudi-arabia/SAU.pdf

Discussion (10 points)

Live Session (0 points)

Chapter 3 in Foundations of Finance –

Understanding Financial Statements and Cash Flows

Fuad, F., Juliarto, A., & Harto, P. (2019). Does IFRS convergence really increase accounting qualities? Emerging market evidence. Journal of Economics, Finance & Administrative Science, 205-220.

Akisk, O., Gal, G., & Mangaliso, M. (2020, December). IFRS, FDI, economic growth and human development: The experience of

Critical Thinking Assignment

(100 points)

Weeks 1-2 Quiz (15 points)

	Anglophone and Francophone African countries. Emerging Markets review, 45. https://doi.org/10.1016/j.ememar.2020.100725
3	Chapter 4 in Foundations of Finance – Evaluating a Firm’s Financial Performance Benlemlih, M., & Cai, L. (2019). Corporate environmental performance and financing decisions. Business Ethics: A European Review, 29(2), 248-265. Willows, G. D., & Rockey, J. A. (2018, May-Nov). Share price reaction to financial and integrated reports. South African Journal of Accounting Research, 174-188. https://doi.org/10.1080/10291954.2018.151414 1	Discussion (10 points) Live Session (0 points)
4	Chapter 5 in Foundations of Finance – The Time Value of Money Zorlu, C. B. (2020). Financial Management Overview. Journal of Applied Business & Economics, 22(12), 172-177. https://doi.org/10.33423/jabe.v22i12.3887 Khan, M. A. (2020). Riba in Islamic finance: Some fresh insights. Journal of Economic and Social Thought, 7(1), 25-40. https://doi-org.sdl.idm.oclc.org/10.1453/jest.v7i 1.2037	Critical Thinking Assignment (110 points) Weeks 3-4 Quiz (15 points)
5	Hanif, M. (2019). Islamic mortgages: principles and practice. International Journal of Emerging Markets, 14(5), 967-987. https://doi.org/10.1108/IJOEM-02-2018-0088 Keffala, M. R. (2020). How using derivative instruments and purposes affects performance of Islamic banks? Evidence from CAMELS approach. Global Finance Journal. https://doi.org/10.1016/j.gfj.2020.100520 Habibur, R. M., Faruk, A. M., Liza, G. P., & Mohammad, O. N. (2019). APPLICATION OF UMRA AND RUQBA IN DISBURSEMENT OF FAMILY TAKAFUL BENEFIT: AN ANALYSIS FROM ShARIAh PERSPECTIVE. Asian Academy of Management Journal, 24, 107-123. https://doi.org/10.21315/aamj2019.24.s1.8	Discussion (10 points) Live Session (0 points)
6	Chapter 6 in Foundations of Finance – The Meaning and Measurement of Risk and Return Ben Rejeb, A., & Arfaoui, M. (2019). Do Islamic stock indexes outperform conventional stock	Critical Thinking Assignment (110 points) Weeks 5-6 Quiz (15 points)

Midterm Exam

Chapter 7 in Foundations of Finance – The

Valuation and Characteristics of Bonds

Abdul Halim, Z., How, J., Verhoeven, P., &

Hassan, M. K. (2019). The value of certification in Islamic bond offerings. Journal of Corporate Finance, 55, 141-161. https://doi.org/10.1016/j.jcorpfin.2018.09.002 Benlagha, N., & Mseddi, S. (2019). Return and volatility spillovers in the presence of structural

breaks: evidence from GCC Islamic and conventional banks. Journal of Asset Management, 20(1), 72-90. https://doi.org/10.1057/s41260-018-00107-z

Critical Thinking Assignment

(110 points)

Live Session (0 points)

Chapter 8 in Foundations of Finance – The Valuation and Characteristics of Stock Attia, M., Lassoued, N., & Sassi, H. (2019). Financial reporting timeliness and the value relevance of earnings: Evidence from banks in the MENA countries. The International trade journal, 33(3), 277-301.

https://doi.org/10.1080/08853908.2018.145921

Ahmed, H., & Elsayed, A. H. (2019). Are Islamic and conventional capital markets decoupled?

Discussion (10 points)

Weeks 9-10 Quiz (15 points)

	Evidence from stock and bonds/sukuk markets in Malaysia. Quarterly Review of Economics and Finance, 74, 56-66. https://doi.org/10.1016/j.qref.2018.04.005
11	Chapter 9 in Foundations of Finance – The Cost of Capital Bai, H., Hou, K., Kung, H., Li, E. X. N., & Zhang, L. (2019). The CAPM strikes back? An equilibrium model with disasters. Journal of Financial Economics, 131(2), 269-298. https://doi.org/10.1016/j.jfineco.2018.08.009 Jouini, J., & Khallouli, W. (2019). Regime switching in the reactions of stock markets in Saudi Arabia to oil price variations. World Economy, 42(8), 2467-2506. https://doi.org/10.1111/twec.12785	Critical Thinking Assignment (110 points) Live Session (0 points)
12	Chapter 10 in Foundations of Finance Capital-Budgeting Techniques and Practice Chapter 11 in Foundations of Finance – Cash Flows and Other Topics in Capital Budgeting Siziba, S., & Hall, J. H. (2020). The evolution of the application of capital budgeting techniques in enterprises. Global Finance Journal. https://doi.org/10.1016/j.gfj.2019.100504 Amran, Y. H. A., Amran, Y. H. M., Alyousef, R., & Alabduljabbar, H. (2020). Renewable and sustainable energy production in Saudi Arabia according to Saudi Vision 2030; Current status and future prospects. Journal of Cleaner Production, 247. https://doi.org/10.1016/j.jclepro.2019.119602 Fehrenbacher, D. D., Kaplan, S. E., & Moulang, C. (2019). The role of accountability in reducing the impact of affective reactions on capital budgeting decisions. Management Accounting Research. https://doi.org/10.1016/j.mar.2019.100650	Critical Thinking Assignment (100 points) Weeks 11-12 Quiz (15 points)
13	Chapter 15 in Foundations of Finance Working-Capital Management Chapter 17 in Foundations of Finance – Cash, Receivables, and Inventory Management Dhole, S., Mishra, S., & Pal, A. M. (2019). Efficient working capital management, financial constraints and firm value: A text-based analysis. Pacific Basin Finance Journal, 58. https://doi.org/10.1016/j.pacfin.2019.101212	Discussion (10 points) Live Session – final exam review (0 points)
	Fan, Y., John, K., Liu, F. H., & Tamanni, L. (2019). Security design, incentives, and Islamic microfinance: Cross country evidence. Journal of International Financial Markets, 62, 264-280. https://doi.org/10.1016/j.intfin.2019.08.002
	Zhang, X., Zhang, Z., & Zhou, H. (2020, March). Oil price uncertainty and cash holdings: Evidence from China. Energy Economics, 87-97. https://doi.org/10.1016/j.eneco.2020.104732
14	Chapter 16 in Foundations of Finance – International Business Finance Alfalih, A. A., & Bel Hadj, T. (2020). Foreign direct investment determinants in an oil abundant host country: Short and long-run approach for Saudi Arabia. Resources Policy, 66. https://doi.org/10.1016/j.resourpol.2020.10161 6 Engel, C., Lee, D., Liu, C., Liu, C., & Wu, S. P. Y. (2019). The uncovered interest parity puzzle, exchange rate forecasting, and Taylor rules. Journal of International Money and Finance, 95, 317-331. https://doi.org/10.1016/j.jimonfin.2018.03.008 Xie, Z., Chen, S.-W., & Hsieh, C.-K. (2020, January). Facing up to the polysemy of purchasing power parity: New international evidence. Economic Modelling. https://doi.org/10.1016/j.econmod.2021.02.019	Discussion (10 points) Weeks 13-14 Quiz

Assignment Details

This course includes the following assignments/projects:

Module 02

Critical Thinking: Understanding Financial Statements and Cash Flow (100 Points)

Complete the following problems:

Problem 2-1: Preparing Financial Statements
Problem 2-2: Preparing the Statement of Cash Flows

You can access the problem details by clicking on Understanding Financial Statements and Cash Flow in your course.