Please note! Course description is confirmed for two academic years, 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
- Teacher: Jylhä Petri