|Module / ECTS / Path / Specialisation||Module :Corporate Finance : 3 ECTS.|
|Open for visitors||yes (3 ECTS)|
|Working language :||English|
|Volume of contact hours :||20 h|
|Workload to be expected by the student :||60 h|
Track : Attendance
|LEARNING GOAL 1 : Students will master state-of-the-art knowledge and tools in management fields in general, as well as in areas specific to the specialized field of management.|
|Students will identify a business organization’s operational and managerial challenges in a complex and evolving environment.|
|Students will understand state-of-the-art management concepts and tools and use them appropriately.|
|Students will implement appropriate methodologies to develop appropriate solutions for business issues.|
This course will examine both organizational and financial drivers of shareholder value. By offering examples of corporate actions and policies in different industries and countries it will illustrate the effects of competition and environment on financing choices. It will also offer insights into why companies do not always strive to maximize shareholder value.
- Identify key finance theories and their implications for practice.
- Illustrate how value is measured and perceived in markets.
- Evaluate a range corporate actions and to comment on their probable impact on market value
- Value companies and to understand why analysts disagree about the value of companies.
- Evaluate how theoretical predictions can be tested empirically.
Session 1 The corporate form, objectives and governance
Here we will look at different types of business organisations and question the assumption that profit maximisation will be the aim in all organisations. We will also see how governance and organisational form are linked.
Session 2 Mergers and acquisitions
Following on from session 1 we will see that mergers and acquisitions change the corporate form and strategy, and are not always value-maximising deals.
Session 3 Private equity
Private equity is an important but controversial area of finance. This session will give an introduction to the area, explaining the strategies undertaken by private equity firms and the effects on corporate governance and performance.
Session 4 Insolvency and recap of the day
The previous sessions looked at major changes to the corporate form, insolvency is perhaps the biggest change faced by any company. Here the focus will be on the rights of stakeholders and how those rights differ according to the legal system.
Session 5 managing short- and long-lived assets
This session will look at how working capital needs differ between industries. It will also explain how companies should make capital investment decisions if they wish to maximise corporate value.
Session 6 Issuing securities
Here we will look at both initial public offerings and seasoned offerings of equity and debt. The drivers of market value will be introduced.
Session 7 Valuation and restructuring
Based on session 6 this session will pick up on the theme of intrinsic versus market value and consider how companies be valued especially when there is a change on strategy.
Session 8 Introduction to capital structure – key theories
The cost of capital is a vital part of any valuation. This session will use traditional theories to examine how the cost of capital changes as forms are financed in different ways.
Session 9 Capital structure – newer theories and evidence
Building on session 8, this session will examine newer theories of capital structure and introduce some empirical evidence.
Session 10 Final test
Hillier, D., Ross, S., Westerfield, R., Jaffe, J. and Jordan, B. (2016) Corporate Finance McGraw Hill, third European edition. The second European edition could be substituted.
Such behaviors as...
... may lead to expulsion from classes.