Mål og innhald
This course gives an introduction to key concepts and empirics in corporate finance. Some of the topics that will be covered are:
- Basic financial concepts such as: present value, the opportunity cost of capital, investment decisions, risk and return and market efficiency.
- The impact of corporate financing, including payout policy, on investment decisions and firm value.
- Agency conflicts between shareholders, managers and debtholders.
- Executive compensation and other systems designed to reduce the extent of agency conflicts.
- Information asymmetries between managers and shareholders, and their impact on corporate financing and investment policies.
- Raising capital
- The implications of behavioural finance for corporate behaviour.
- Market efficiency and event study methodology
- Valuation of stocks
- Rationales for and implications of merger and acquisition activity
A candidate who has completed his or her qualification should have the following learning outcomes defined in terms of knowledge, skills and general competence:
- can explain basic financial concepts such as: present value, the opportunity cost of capital, investment decisions, risk and return and market efficiency.
- understands the impact of corporate financing on investment decisions and firm value.
- can explain option theory and valuation.
- understands the functioning of bond markets and the valuation of bonds.
- understands theories and evidence on executive compensation.
- understands information asymmetries between managers and shareholders and their impact on corporate financing and investment policies.
- understands the implications of behavioral finance for corporate behavior.
- can explain rationales for and implications of merger and acquisition.
- can apply real options theory to investment decisions.
- can identify agency conflicts between shareholders, managers and debtholders.
- can explain corporate governance systems designed to reduce the extent of these agency conflicts.
Undervisningsformer og omfang av organisert undervisning
3 hours per week, over 12 weeks. 36 hours in total.
One term paper (pass/fail). Passed mandatory exercises are valid this term and the 3 following terms.
Written exam (4 hours)
All the courses at the department of Economics are evaluated at the end of each semester.
Department of Economics
Tlf: 555 89 226
- 24.11.2017, 09:00
- 4 timer