Content, progress and pedagogy of the module

This module aims to discuss optimal strategic decisions in a range of topics and issues in Corporate Finance with the adoption of advanced theoretical models. The module explains the interaction between capital markets and the underlying value of real assets, provides an in-depth exploration of advanced theories used to understand financial markets in the context of corporate borrowing and lending, discusses financing frictions, security design, and the process of security issuance in equity markets, the role of corporate control, and the interaction of control rights and cash flow rights and touches on corporate risk management evaluation and hedging.

The module will focus on real-world issues frequently faced by corporate managers, such as capital budgeting, the design of optimal capital structures, the raising of long-term equity capital, distribution of cash to shareholders, among others. In this module, students will make use of integrated software solutions for problem-solving.

The Advanced Corporate Finance module also serves as a background for other elective graduate courses in Finance such as Business Valuation Challenge, Empirical Methods for Corporate Finance, Entrepreneurial Finance, and Risk Management in Financial Institutions.

Learning objectives

Knowledge

The objective is that the student after the module possesses the necessary knowledge on:

• theories and models of corporate finance.
• problems caused by moral hazard, principal-agent relationships, asymmetric information, and adverse selection.
• how companies are valued in the context of financial markets and how investments decisions are made.

Skills

The objective is that the student after the module possesses the necessary skills in:

• developing quantitative models and analysing financial information.
• understanding the perspectives of corporate managers, shareholders, financiers, and financial intermediaries of key financial decisions.
• evaluating complex corporate finance decisions and understanding the key driving forces in important models in corporate finance.

Competences

The objective is that the student after the module possesses the necessary competences in:

• analysing investment, financing, strategic corporate decisions, and developing valuation models in excel.
• critical thinking and analysis of theoretical issues in corporate finance and related current events.
• problem-solving that will enable students to apply theory in practise and develop further analytic abilities based on the material taught in class. 

Type of instruction

For information see § 17.

Exam

Exams