Corporate Finance

2022/2023

Academic Year

ENG

Instruction in English

6

ECTS credits

Delivered at:

Практико-ориентированные магистерские программы факультета экономических наук

Course type:

Compulsory course

When:

1 year, 2, 3 module

Instructors

Ivashkovskaya, Irina

Khromova (Fokina), Ella

Course Syllabus

Abstract

The course develops conceptual framework to analyze the broad area of corporate financial decisions (investing, financing, payout, strategic deals) and provides the prevailing empirical evidence for their motives and corporate performance impact in developed and emerging capital markets. It covers topics in corporate financial architecture including governance issues and board’s role, ownership structure and how particular types of architecture influence corporate performance of a firm. It is among core professional compulsory courses of the program and provides theoretical background to other financial courses in the program and core research workshop “Research methods in finance and accounting”.

Learning Objectives

• Know the key concepts of corporate finance and the recent trends in financial studies. Know what empirical research is based on theoretical arguments in the field. Understand the connection between key concepts of corporate finance and financial decisions. Apply theoretical concepts to real companies in emerging markets.

Expected Learning Outcomes

• - to analyze the performance of a firm applying economic profit criteria; - to apply different methods for cost of debt and cost of equity estimation in developed and emerging capital markets; - to understand major empirical methods to analyze corporate financing policy, payout policy; - to understand possible impact of the corporate governance mechanism over performance; - to apply different methods to determine the life cycle of the firm;
• - to apply the real options techniques to capital budgeting problems; - to choose and apply methods of determining the optimal leverage for non-financial firms; - to estimate internal capital market efficiency; - to estimate the concept of the corporate financial architecture; - to understand the limitation of asset pricing models;

Course Contents

• Corporate finance framework for company analysis
• Designing capital structure decisions
• Corporate cost of capital
• Investing Decisions Under Uncertainty
• Managerial Flexibility
• Corporate Financial Architecture
• Changing Corporate Landscape by Successful Turnaround Strategies

Assessment Elements

• Test
• Project

Interim Assessment

• 2022/2023 3rd module
  0.5 * Project + 0.25 * Test

Bibliography

Recommended Core Bibliography

• Berk, J. B., & DeMarzo, P. M. (2017). Corporate Finance: The Core, Global Edition: Vol. Fourth edition. Pearson.
• Damodaran, A. (2015). Applied Corporate Finance (Vol. Fourth edition). Hoboken, New Jersey: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1639191

Recommended Additional Bibliography

• Corporate Finance: Theory and Practice / Pierre Vernimmen, Pascal Quiry, Maurizio Dal-locchio, Yann Le Fur, Antonio Salvi. – 5th ed. – Chichester: John Wiley & Sons Ltd, 2018. – 1010 p.