Please note! Course description is confirmed for two academic years (1.8.2018-31.7.2020), which means that in general, e.g. Learning outcomes, assessment methods and key content stays unchanged. However, via course syllabus, it is possible to specify or change the course execution in each realization of the course, such as how the contact sessions are organized, assessment methods weighted or materials used.

LEARNING OUTCOMES

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.

Credits: 6

Schedule: 08.09.2020 - 23.10.2020

Teacher in charge (valid 01.08.2020-31.07.2022): Petri Jylhä

Teacher in charge (applies in this implementation): Petri Jylhä

Contact information for the course (applies in this implementation):

CEFR level (applies in this implementation):

Language of instruction and studies (valid 01.08.2020-31.07.2022):

Teaching language: English

Languages of study attainment: English

CONTENT, ASSESSMENT AND WORKLOAD

Content
  • Valid 01.08.2020-31.07.2022:

    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 01.08.2020-31.07.2022:

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

Workload
  • Valid 01.08.2020-31.07.2022:

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

DETAILS

Study Material
  • Valid 01.08.2020-31.07.2022:

    Lecture notes, academic articles, and textbooks: George M. Constantinides, Milton Harris, and René M. Stulz, "Handbook of Economics of Finance, Volume 1, Part A" (2003), and Jean Tirole, "Theory of Corporate Finance" (2006).

Prerequisites
  • Valid 01.08.2020-31.07.2022:

    Rahoituksen perusteet or Principles of Corporate Financial Management and Corporate Finance (28C00100).  

SDG: Sustainable Development Goals

    1 No Poverty

    8 Decent Work and Economic Growth

FURTHER INFORMATION

Description

Registration and further information