Credits: 6

Schedule: 11.09.2017 - 27.10.2017

Teacher in charge (valid 01.08.2018-31.07.2020): 

Assistant Professor Petri Jylhä


Teaching Period (valid 01.08.2018-31.07.2020): 

I (fall 2018) Töölö campus

I (fall 2019) Otaniemi campus

Learning Outcomes (valid 01.08.2018-31.07.2020): 

By the end of this course, the students will have will have a strong understanding of the theoretical foundations of modern corporate finance. The course will address asymmetric information problems in companies’ financing decisions and governance, and discuss various solutions to these problems. The course emphasizes both theoretical modelling of agency problems and the practical implications and solutions to those problems. After completing this course, the student will have the skills to analyze and solve complicated problems in corporate finance in a structured and analytical manner.

Content (valid 01.08.2018-31.07.2020): 

Asymmetric information; moral hazard: financing constraints, over-borrowing, debt overhang, asset substitution; adverse selection: over and under-investment; price reactions to financial decisions; signaling; corporate governance: executive compensation; monitoring; shareholder activism.

Assessment Methods and Criteria (valid 01.08.2018-31.07.2020): 

1. Lectures, assistant professor Petri Jylhä
2. Assignments (50%), Petri Jylhä
3. Final exam (50%)

Workload (valid 01.08.2018-31.07.2020): 

Contact teaching, 34 h
Independent study, 125 h
Exam, 3 h

Study Material (valid 01.08.2018-31.07.2020): 

Lecture notes, academic articles, and textbook: Jean Tirole, Theory of Corporate Finance (2006).

Course Homepage (valid 01.08.2018-31.07.2020): 

MyCourses 28E29000 Advanced Corporate Finance

Prerequisites (valid 01.08.2018-31.07.2020): 

Corporate Finance (28C00100). The course is an advanced level course for MSc students.

Grading Scale (valid 01.08.2018-31.07.2020): 


Registration for Courses (valid 01.08.2018-31.07.2020): 

Course registration via WebOodi. See the registration time in WebOodi.

For any registration related matter, please contact the department study coordinator.

Further Information (valid 01.08.2018-31.07.2020): 

A maximum of 70 students can be accepted to the course.

- Students at Aalto Finance M.Sc. programme (i.e. who have graduated as B.Sc.) will be guaranteed a seat on Finance M.Sc. courses. Finance M.Sc. students re-taking the course (grade already registered in WebOodi) will not be prioritized and can participate only if there are places remaining.

- CEMS students are similarly guaranteed a seat for Finance M.Sc. courses, which have been designated as CEMS courses.

Remaining seats are prioritized as follows, in the order of registration in WebOodi within one category:
1. Finance M.Sc. exchange students from other universities
2. Aalto Finance B.Sc. students with a finished B.Sc. thesis (registered in transcript of records)
3. All other M.Sc. students

Please follow carefully the registration deadlines of the courses and exams! Missing registration deadline automatically foregoes a guaranteed seat for Finance M.Sc. courses and puts prospective student at the bottom of the prioritization list.

Students may be required to confirm their registration by signing the participation list circulated during the first lecture.