CAPITAL MARKETS AND CORPORATE FINANCE - MODULO MANAGERIAL CORPORATE FINANCE
Capital Markets and Corporate Finance - Modulo Managerial Corporate Finance
Academic year 2018/2019
Bernardo Bortolotti (Lecturer)
Course disciplinary sector (SSD)
SECS-P/08 - economia e gestione delle imprese
Type of examination
Type of learning unit
This course provides an overview of the fundamental financial choices of firms from a theoretical and practical point of view. The course will review the main models in the theory of corporate finance and their real world implications. The emphasis on theory and analytical tools applied to real-world decision making will allow a deep understanding of firms’ capital structure, corporate governance, and topics in long-term finance and investment.
Results of learning outcomes
The goal of the course is to provide students with a framework to apply to decision making when facing a financial decisions in firms. The objective of the course is to enable students to (1) discuss and assess the options available to managers under specific scenarios, (2) explain how each scenario fits within current corporate finance theory, (3) identify and apply the specific tools and techniques that aid in decision making, and (4) provide recommendations based on the insights gained in the applications of these tools.
Part I. Corporate financing
Claims, players and processes
Debt and equity financing: institutional features and stylized facts
The basic trade-off between risk and return
The corporate structure in the Modigliani-Miller framework
Agency problems in outside financing
Part II. Corporate governance
The board of directors
Large shareholders and investors activism
Takeovers and LBOs
Debt as a governance mechanism
Part III. Topics in long-term finance
Sovereign wealth and investments
Inclusive corporate finance
Social impact finance and double bottom line
Learning assessment methods
Exams will be a mixture of multiple-choice questions, open-ended questions, and quantitative problems. For quantitative problems, you will need to show your work (the final answer is not enough). Exams are NOT open book/notes. The quantitative problems on exams will resemble those on the homework assignments.
Calculators and Other Equipment on Exams: You can use calculators – simple or financial – in class. If you are in doubt about your ‘device’, please come see me before the first exam. No other devices are going to be allowed during exams – no phones, laptops, tablets, etc.
Suggested readings and bibliography
The lecture slides are outlines of the lectures, not complete notes. They will be posted ahead of each lecture (I will do my best to have them there at least 24 hours in advance). I recommend you download those ahead of class – print them or store them on your PCs, as you prefer.
The textbook we will primarily use in class is:
Financial Markets and Corporate Strategy: European Edition
Additional reading material may be assigned and discussed as the semester proceeds and it will include academic papers and articles from the press. Electronic version of the reading material or links and download instructions will be provided on CAMPUSNET. The content of the additional readings is considered optional – with the exception of the material that overlaps with the content of class lectures – but I might offer extra-credit questions on exams based on such content.