28E29000 - Advanced Corporate Finance, Lecture, 2.9.2024-16.10.2024

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: 02.09.2024 - 16.10.2024

Teacher in charge (valid for whole curriculum period):

Teacher in charge (applies in this implementation): Petri Jylhä, Penglong Li

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

CEFR level (valid for whole curriculum period):

Language of instruction and studies (applies in this implementation):

Teaching language: English. Languages of study attainment: English

CONTENT, ASSESSMENT AND WORKLOAD

Content

  • valid for whole curriculum period:

    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 for whole curriculum period:

    Assignments 50 %
    Exam 50 %

Workload

  • valid for whole curriculum period:

    Contact teaching, 24 h
    Independent study, 135 h
    Exam, 3 h

DETAILS

Study Material

  • valid for whole curriculum period:

    Lecture notes, academic articles, and selected chapters of “Handbook of the Economics of Finance” Volume 1, Part A (2003) and Volume 2, Part A (2013).

Substitutes for Courses
Prerequisites

FURTHER INFORMATION

Further Information

  • valid for whole curriculum period:

    Teaching Language: English

    Teaching Period: 2024-2025 Autumn I
    2025-2026 Autumn I

    Registration:

    The course is offered to BIZ students only. A maximum of 80 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. Students re-taking the course (grade already registered) will not be prioritized and can participate only if there are places remaining. CEMS students are similarly guaranteed a seat for this course. Remaining seats are prioritized as follows
    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 at the School of Business

    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.

Rules of Conduct - Students´ Rights and Responsibilities (in force from 1 August 2020)

Aalto University Code of Academic Integrity and Handling Violations Thereof