Universität Wien

040410 EK KFK CF: Corporate Finance (2015W)

8.00 ECTS (4.00 SWS), SPL 4 - Wirtschaftswissenschaften
Continuous assessment of course work

Ein Vorziehen dieser LV ist nur moeglich, wenn bereits Principles of Finance positiv absolviert wurde
Moodle

Registration/Deregistration

Note: The time of your registration within the registration period has no effect on the allocation of places (no first come, first served).

Details

max. 50 participants
Language: English

Lecturers

Classes (iCal) - next class is marked with N

Office hours of Prof. Lehar: I will be available for student questions before and after class in my office (to be determined). I am also available on Oct 15 in HS 12 17:00-18:00.

Thursday 08.10. 16:45 - 20:00 Hörsaal 9 Oskar-Morgenstern-Platz 1 1.Stock
Friday 09.10. 16:45 - 20:00 Hörsaal 3 Oskar-Morgenstern-Platz 1 Erdgeschoß
Saturday 10.10. 13:15 - 16:30 Hörsaal 3 Oskar-Morgenstern-Platz 1 Erdgeschoß
Monday 12.10. 16:45 - 20:00 Hörsaal 9 Oskar-Morgenstern-Platz 1 1.Stock
Tuesday 13.10. 16:45 - 20:00 Hörsaal 16 Oskar-Morgenstern-Platz 1 2.Stock
Wednesday 14.10. 17:00 - 20:15 Hörsaal 16 Oskar-Morgenstern-Platz 1 2.Stock
Thursday 15.10. 16:45 - 18:15 Hörsaal 12 Oskar-Morgenstern-Platz 1 2.Stock
Friday 23.10. 15:00 - 16:30 Hörsaal 9 Oskar-Morgenstern-Platz 1 1.Stock
Monday 09.11. 16:45 - 20:00 Hörsaal 15 Oskar-Morgenstern-Platz 1 2.Stock
Wednesday 11.11. 16:45 - 20:00 Hörsaal 8 Oskar-Morgenstern-Platz 1 1.Stock
Thursday 12.11. 16:45 - 20:00 Hörsaal 12 Oskar-Morgenstern-Platz 1 2.Stock
Monday 16.11. 16:45 - 20:00 Hörsaal 16 Oskar-Morgenstern-Platz 1 2.Stock
Wednesday 18.11. 16:45 - 20:00 Hörsaal 9 Oskar-Morgenstern-Platz 1 1.Stock
Thursday 19.11. 16:45 - 18:15 Hörsaal 12 Oskar-Morgenstern-Platz 1 2.Stock
Thursday 19.11. 18:30 - 20:00 Hörsaal 12 Oskar-Morgenstern-Platz 1 2.Stock

Information

Aims, contents and method of the course

The course offers an introduction into the field of Corporate Finance and provides students with a framework to think about firms' financial decisions. We will start with the optimal capital structure decision of the firm, i.e. the mix of equity and debt financing. We will discuss if a different financing mix can create value, tax implications, and implications for financial distress, and the cost of capital. We will then examine how shareholders can convey information to the market by issuing certain securities.
We will then turn to mergers and acquisitions where we will examine some stylized facts about the M&A market, discuss theory and empirical studies, look at restructuring, and conclude with takeover defence mechanisms.
Building on the material taught by Prof. Lehar, we will first consider conflicts of interest between "insiders" and outside investors (e.g. between shareholders and debt holders, or between management and shareholders). Students will learn about mechanisms through which these conflicts might be mitigated and about implications for firms' capital structure decisions. We will then turn to firms' payout policies and analyse the trade-offs characterising different ways of distributing excess cash to shareholders.

Assessment and permitted materials

The grade for this part of the course will account for 50% of the grade in Corporate Finance. The other 50% will be based on Part II (taught by Prof. Mariathasan). Grades for Part I will be composed as follows:

-3 case submissions 10% each (30% total) (see details below, to be submitted by email before the class in which the case is discussed)
-1 short Problem Set 20% (see details below, to be submitted by email on 19.10.2015 before midnight Austrian time)
-Class participation 10% (see details below)
-1 Final Exam 40% (closed book, date TBA)

Grades for Part II will be composed as follows:

-1 Short Problem Set 15% (to be submitted by email on 16.11.2015 before class)
-1 Long Problem Set 35% (to be submitted by email on 25.11.2015 before noon)
-1 Final Exam 50% (closed book)

If you want, you can submit the long problem set in groups of up to 5. Attendance is not compulsory and class participation will not be graded. Both, however, are strongly encouraged. A passing grade (4) requires you to be familiar with the new terminology, to be able to identify known scenarios in which models are applicable and to replicate procedures seen in class. A higher grade (1-2) requires you to be able to analyse firms' financial decisions by applying models to potentially unknown and more complex circumstances, to be able to generalize and hypothesize based on the framework(s) introduced in class, and to critically discuss existing or hypothetical corporate governance frameworks and payout policies.

Minimum requirements and assessment criteria

While examples, stylized facts, cases, and institutional background information will be provided occasionally, the focus of the course is on developing a theoretical understanding of the relevant mechanisms, and on enabling students to critically assess firms' financial choices.

Examination topics

There will be 12 three-hour sessions, consisting of a mix of lectures, case discussions and problem solving sessions.

Reading list

Lecture notes will be distributed before each lecture. In addition, there are the textbooks that I recommend for consultation:

-Main: Jonathan Berk & Peter DeMarzo, Corporate Finance, Pearson Intl. Edition, 2007.
-Main: Weston, Mitchell, and Milherin, "Takeovers, Restructuring, and Corporate Governance", 4th edition, Pearson, Prentice Hall.
-Advanced (optional): Jean Tirole, The Theory of Corporate Finance, Princeton University Press, 2006.

In addition, some lectures will refer to original journal articles, which I will reference in class and on my slides.

Association in the course directory

Last modified: Mo 07.09.2020 15:29