Corporate Finance

Studienivå (studiesyklus)

 Master

Undervisningssemester

Uregelmessig

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

Læringsutbyte

A candidate who has completed his or her qualification should have the following learning outcomes defined in terms of knowledge, skills and general competence:

Knowledge

The candidate...

• 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.

Skills

The candidate...

• 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.

Krav til forkunnskapar

ECON310 and ECON340

Krav til studierett

Master's Programme in Economics, Professional Studies in Economics or equivalent.

Undervisningsformer og omfang av organisert undervisning

 3 hours per week, over 12 weeks. 36 hours in total.

Obligatorisk undervisningsaktivitet

One term paper (pass/fail).

Compulsory assignments that are not accepted on the first try, may be handed in a second time. To be able to get this opportunity, the student must have made a sincere effort the first time around; that is, the student must have tried to answer most of the assignment.

Approved compulsory requirements do not have time limits.

Vurderingsformer

 Written exam (4 hours)

Hjelpemiddel til eksamen

Mathematical Formula Collection of K Sydsæter, A. Strøm and P. Berck or Mathematical Formulas for Economists of B Luderer, V. Nollau and K. Vetters and calculator. The following simple, non-programmable calculators without graphical display are allowed to be used for written tests:

All models of the type:

• Casio FX-82, Casio FX-82ES PLUS or Casio FX-82EX
• Hewlett-Packard HP30
• Texas Instruments TI-30

The Department of Economics can conduct a sample of aids in the examination room.

Karakterskala

 A-F

Vurderingssemester

Assessment in teaching semester. New exam the following semester only for students who have a valid document of absence.

Emneevaluering

Alle emne blir evaluert i tråd med UiBs kvalitetssystem for utdanning.