040094 KU Corporate Finance 1 (MA) (2023W)
Prüfungsimmanente Lehrveranstaltung
Labels
VOR-ORT
An/Abmeldung
Hinweis: Ihr Anmeldezeitpunkt innerhalb der Frist hat keine Auswirkungen auf die Platzvergabe (kein "first come, first served").
- Anmeldung von Mo 11.09.2023 09:00 bis Fr 22.09.2023 12:00
- Anmeldung von Di 26.09.2023 09:00 bis Mi 27.09.2023 12:00
- Abmeldung bis Fr 20.10.2023 23:59
Details
max. 50 Teilnehmer*innen
Sprache: Englisch
Lehrende
Termine (iCal) - nächster Termin ist mit N markiert
Midterm: Sa 18.11.2023, 8.30 am in HS 4, Oskar Morgenstern-Platz 1, 1090 Wien
Final Exam: Th 7.12.2023, 03.00 pm in HS 12, Oskar Morgenstern-Platz 1, 1090 Wien
Montag
23.10.
09:45 - 11:15
Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
Montag
23.10.
11:30 - 13:00
Hörsaal 5 Oskar-Morgenstern-Platz 1 Erdgeschoß
Montag
30.10.
09:45 - 11:15
Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
Montag
30.10.
11:30 - 13:00
Hörsaal 5 Oskar-Morgenstern-Platz 1 Erdgeschoß
Montag
06.11.
09:45 - 11:15
Hörsaal 7 Oskar-Morgenstern-Platz 1 1.Stock
Montag
06.11.
11:30 - 13:00
Hörsaal 9 Oskar-Morgenstern-Platz 1 1.Stock
Freitag
10.11.
15:00 - 18:15
Hörsaal 4 Oskar-Morgenstern-Platz 1 Erdgeschoß
Montag
13.11.
09:45 - 13:00
Hörsaal 14 Oskar-Morgenstern-Platz 1 2.Stock
Samstag
18.11.
08:00 - 13:00
Hörsaal 4 Oskar-Morgenstern-Platz 1 Erdgeschoß
Montag
20.11.
09:45 - 13:00
Hörsaal 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
Montag
27.11.
09:45 - 13:00
Hörsaal 1 Oskar-Morgenstern-Platz 1 Erdgeschoß
Donnerstag
07.12.
15:00 - 16:30
Hörsaal 12 Oskar-Morgenstern-Platz 1 2.Stock
Information
Ziele, Inhalte und Methode der Lehrveranstaltung
Art der Leistungskontrolle und erlaubte Hilfsmittel
The course “Corporate Finance I” consists of 7 three hour sessions. Sessions consist of lectures, exercise-solving and at least one case study, and will involve class discussion.
Case Studies
The case method is one of the most effective pedagogical tools to sharpen your analytical and decision-making skills, as it requires you to be an active participant in financial decisions. The discussion constitutes an opportunity to defend your position and to learn from others, by listening to their comments and criticism. Classrooms are our training environments to prepare you for business challenges.
You are encouraged to meet in groups to discuss and analyse the cases. In the past, students have found that these groups complement the class discussion well.
Regarding the cases, each group will submit a three-page memorandum of analysis and recommendations covering the case study questions plus any accompanying tables you wish to include. Tables should be well organized and labelled. Be sure to indicate how you arrived at your conclusions. In addition, groups are required to prepare a power point presentation, including the main points of the analysis.
What do I expect from you in class
This is an interactive course, where your active participation is required. Attendance is compulsory.
A learning area will be available in the Intranet (Moodle). There, you would find instructions for the sessions, communications, bibliography, etc. Please look at it a couple of times a week. Slides of the sessions will also be posted here, always BEFORE the class.
Laptop/tablets policy.
You are not supposed to use your laptop/tablets during case discussions. You have to be 100% focused in the discussions. You may use your laptops/tablets on the lectures/discussion sessions ONLY for academic purposes, emailing, facebooking, tweeting, chatting, skyping, internet surfing, etc. should NOT be done during classes. Engaging yourself in such activities would penalize strongly your grade on class participation.
Case Studies
The case method is one of the most effective pedagogical tools to sharpen your analytical and decision-making skills, as it requires you to be an active participant in financial decisions. The discussion constitutes an opportunity to defend your position and to learn from others, by listening to their comments and criticism. Classrooms are our training environments to prepare you for business challenges.
You are encouraged to meet in groups to discuss and analyse the cases. In the past, students have found that these groups complement the class discussion well.
Regarding the cases, each group will submit a three-page memorandum of analysis and recommendations covering the case study questions plus any accompanying tables you wish to include. Tables should be well organized and labelled. Be sure to indicate how you arrived at your conclusions. In addition, groups are required to prepare a power point presentation, including the main points of the analysis.
What do I expect from you in class
This is an interactive course, where your active participation is required. Attendance is compulsory.
A learning area will be available in the Intranet (Moodle). There, you would find instructions for the sessions, communications, bibliography, etc. Please look at it a couple of times a week. Slides of the sessions will also be posted here, always BEFORE the class.
Laptop/tablets policy.
You are not supposed to use your laptop/tablets during case discussions. You have to be 100% focused in the discussions. You may use your laptops/tablets on the lectures/discussion sessions ONLY for academic purposes, emailing, facebooking, tweeting, chatting, skyping, internet surfing, etc. should NOT be done during classes. Engaging yourself in such activities would penalize strongly your grade on class participation.
Mindestanforderungen und Beurteilungsmaßstab
Attendance is compulsory. The evaluation will be based on the following items:
40% Mid-term Exam
50% Final Exam
10% Case Study
40% Mid-term Exam
50% Final Exam
10% Case Study
Prüfungsstoff
All lecture materials and paper presentations.
Literatur
The main reading material for the course is contained in:
• “Corporate Finance”, 4th Edition by P.DeMarzo and J.Berk, Pearson Global Edition. (2013).
• “The New Corporate Finance. Where Theory Meets Practice”, 3rd Edition by D.Chew, McGraw-Hill Irwin (CHEW).
Supplementary Readings by Topic:
I: Capital Structure Theories and Payout (Parts I-II)
• Chew, D. (2001), ‘The Modigliani-Miller Propositions after Thirty Years’ Journal of Applied Corporate Finance, Vol. 6.Num.1
• Graham, J. & Harvey, C. (2002), “How do CFOs make capital budgeting and capital structure decisions?” Journal of Applied Corporate Finance, 15(1): pp.8-23
• Opler, T.C., Saron, M. & Titman, S. (1997), “Designing capital structure to create shareholder value.” Journal of Applied Corporate Finance, 10(1): pp.21-34
• Smith, C.W. (1986), “Raising capital: theory and evidence.” Midland Corporate Finance Journal, 4: pp.6-22
• Barclay, M.J. & Smith, C.W. (1996), “On financial architecture: leverage, maturity, and priority.” In: Chew, D.H. (eds.) (2001) New corporate finance: where theory meets practice. 3rd ed. Boston, Mass.: Irwin McGraw-Hill, pp.210-223
• Ghosh, C. & Woolridge, J.R. (1988), “An analysis of shareholder reaction to dividend cuts and omissions.” Journal of Financial Research, 11(4): pp.281-294
II. Selected Topics – Financial Distress and Restructuring
• Franks, Nyborg and Torous, “A Comparison of US, UK and German Insolvency Codes,” Financial Management, Volume 25, No 3.
• Stuart C. Gilson (1991), “Managing Default: Some Evidence on How Firms Choose Between Workouts and Chapter 11”, Journal of Applied Corporate Finance Volume 4, Issue 2.
• Lawrence A. Weiss (1991), “The Bankruptcy Code and Violations of Absolute Priority”, Journal of Applied Corporate Finance, Volume 4, Issue 2.
• “Corporate Finance”, 4th Edition by P.DeMarzo and J.Berk, Pearson Global Edition. (2013).
• “The New Corporate Finance. Where Theory Meets Practice”, 3rd Edition by D.Chew, McGraw-Hill Irwin (CHEW).
Supplementary Readings by Topic:
I: Capital Structure Theories and Payout (Parts I-II)
• Chew, D. (2001), ‘The Modigliani-Miller Propositions after Thirty Years’ Journal of Applied Corporate Finance, Vol. 6.Num.1
• Graham, J. & Harvey, C. (2002), “How do CFOs make capital budgeting and capital structure decisions?” Journal of Applied Corporate Finance, 15(1): pp.8-23
• Opler, T.C., Saron, M. & Titman, S. (1997), “Designing capital structure to create shareholder value.” Journal of Applied Corporate Finance, 10(1): pp.21-34
• Smith, C.W. (1986), “Raising capital: theory and evidence.” Midland Corporate Finance Journal, 4: pp.6-22
• Barclay, M.J. & Smith, C.W. (1996), “On financial architecture: leverage, maturity, and priority.” In: Chew, D.H. (eds.) (2001) New corporate finance: where theory meets practice. 3rd ed. Boston, Mass.: Irwin McGraw-Hill, pp.210-223
• Ghosh, C. & Woolridge, J.R. (1988), “An analysis of shareholder reaction to dividend cuts and omissions.” Journal of Financial Research, 11(4): pp.281-294
II. Selected Topics – Financial Distress and Restructuring
• Franks, Nyborg and Torous, “A Comparison of US, UK and German Insolvency Codes,” Financial Management, Volume 25, No 3.
• Stuart C. Gilson (1991), “Managing Default: Some Evidence on How Firms Choose Between Workouts and Chapter 11”, Journal of Applied Corporate Finance Volume 4, Issue 2.
• Lawrence A. Weiss (1991), “The Bankruptcy Code and Violations of Absolute Priority”, Journal of Applied Corporate Finance, Volume 4, Issue 2.
Zuordnung im Vorlesungsverzeichnis
Letzte Änderung: Di 14.11.2023 18:47
The objective is to develop a framework to think about financial decisions firms regularly undertake. We will go back and forth between developing theories and confronting them with specific real life examples. We start by analysing the firm’s financing decision in perfect markets. We outline the role of taxes in financing and project valuation. Incorporating the notion of financial distress and bankruptcy, we draw on the Static Trade-off Theory of Capital Structure. We analyse the role of information in shaping the financing of corporations and discuss the resulting pecking order of financing. We then focus on the potential conflicts of interest between shareholders and debt holders and between shareholders and management, and their implications for the firm’s capital structure decision. We conclude this part by discussing dynamic considerations the firm might have to make when setting its capital structure.
Second, we will focus on the firm’s pay out policy, i.e. we will look at the question of when and how the firm is able to distribute excess cash to shareholders. We show, that, as with capital structure, a firm can create value by its pay out policy only in the presence of market imperfections such as taxes, agency costs, transaction costs or asymmetric information between management and investors. We also discuss cash management by corporations and the usefulness of credit lines for them.
The third topic of the course analyses corporate restructuring such as mergers and acquisitions (M&As) and initial public offerings (IPOs).Upon completing this course, students should be able to:
• Discuss the financing decisions of corporations.
• Understand the importance of asymmetric information and signalling in capital markets and financial decisions.
• Critically discuss the question of the dividend policy a firm should follow.
• Understand the feasibility and trade-offs employed in the different forms of restructuring for financially distressed firms.
• Explore different methods of issuing securities and understand the stock price reaction to issuing securities.
PART I: CAPITAL STRUCTURE
Session 1-2:
Irrelevance of capital structure in perfect capital markets
Impact of taxes on capital structure
Capital structure and financial distress
Session 3:
Capital structure and asymmetric Information (Signalling)
Session 4:
Conflicts of Interest between shareholders and debt holders
Conflicts of Interest between shareholders and managers
Midterm Exam
PART II: PAYOUT POLICY
Session 5:
Pay out policy in perfect capital markets
Impact of taxes on pay out policy
Dividends and transaction costs
Dividends and asymmetric information
PART III: CORPORATE RESTRUCTURING
Session 6:
The economics of M&A
Reasons to acquire.
Market reaction to M&A
Session 7:
Guest Lecture and Case Study on Mergers and Acquisitions
Final Exam