Corporate Finance Theory (F)
Course content
This course advances deeper into issues of corporate finance in imperfect financial markets, building on the introduction to this field in the course “Financial Decision Making.”
In imperfect financial markets, firms are unable to finance all economically valuable activities. The course focuses on how investors and firms can arrange optimal financial agreements, minimizing inefficiencies. This includes consideration of collateral pledging, designing investor information and control, mergers and break-ups of firms, reputation management and relation building, as well as long-term investment commitments to address issues of liquidity management and risk management. The quest for efficiency may be supported by regulation of financial contacts and markets, for instance of corporate governance structures.
The course uses game-theoretic models to delve deeper into a variety of these topics from the textbook and from articles in academic finance journals. Attention is paid to topics of current interest.
The course partly gives participants a review of some facts on corporate finance, partly presents some key theoretical models, and partly addresses how these models are applied to address the main questions.
MSc programme in Economics – elective course
The course is part of the MSc programme in Economics, Financial line, symbolized by ‘F’.
The PhD Programme in Economics at the Department of Economics:
- The course is an elective course with research module. In order to register for the research module and to be able to write the research assignment, the PhD students must contact the study administration AND the lecturer.
The course is open to:
- Exchange and Guest students from abroad
- Credit students from Danish Universities
- Open University students
After completing the course the student is expected to be able to:
Knowledge:
- Know key theoretical concepts, questions, models, and results from the academic literature on corporate finance (foundation).
- Identify and evaluate key modeling assumptions in an advanced, mathematically specified theoretical framework of corporate finance (formal modeling).
- Account for the economic mechanism underlying given theoretical results on corporate finance and discuss their interpretation (intuition).
Skills:
- Assess whether various modeling assumptions are realistic in given real-life corporate finance settings (foundation).
- Derive and analyze formal results within an advanced, mathematically specified theoretical corporate finance framework (formal modeling).
- Argue whether theoretical insights from academic corporate finance articles can shed light on given market settings and events and/or support given policy proposals (application to cases).
Competencies:
- Compare and contrast different theoretical concepts of corporate finance and explain their key similarities and differences (intuition).
- Discuss to what extent mathematically derived results from corporate finance models relate to their more informal interpretation (formal modeling).
- Discuss new corporate finance events and policies and evaluate whether theoretical insights from various articles can shed light on these events and policies (application to cases).
The teaching activities consist of lectures where students are expected to actively participate.
Tirole, Jean. “The theory of corporate finance.” Princeton University Press, 2010.
Various papers that will be announced later.
Participants benefit from having followed the course
"Financial Decision Making," or an equivalent
introduction to the field of Finance, including the basic
principles of corporate finance.
Participants are expected to have followed both “Microeconomics II”
and “Microeconomics III” or equivalent, as they introduce
theoretical concepts and methods that will be employed in this
course.
Schedule:
2 hours lectures 1 to 2 times a week from week 36 to 50 (except
week 42).
The lecturer gives individual written feedback to mandatory assignments as well as collective oral feedback to debates in lectures.
For enrolled students: Rules etc at Master(UK) and Master(DK)
When registered you will be signed up for exam.
- Full-degree students – sign up at Selfservice on KUnet
- Exchange and guest students from abroad – sign up through Mobility Online and Selfservice- read more through this website.
- Credit students from Danish universities - sign up through this website.
- Open University students - sign up through this website.
The dates for the exams are found here Exams – Faculty of Social Sciences - University of Copenhagen (ku.dk)
Please note that it is your own responsibility to check for overlapping exam dates
- ECTS
- 7,5 ECTS
- Type of assessment
-
On-site written exam, 3 hours under invigilation
- Examination prerequisites
-
To qualify for the exam the student must no later than the given deadline during the course
- Hand in and have approved one mandatory assignment.
- Aid
- Written aids allowed
- Marking scale
- 7-point grading scale
- Censorship form
- No external censorship
- Exam period
-
Exam information:
The examination date can be found in the exam schedule here
More information is available in Digital Exam from the middle of the semester.
More information about examination, rules, aids etc. is available at Master students (UK) and Master students (DK).
- Re-exam
-
Same as the ordinary exam.
- You must hand in and have approved 1 mandatory assignment for qualifying to the reexam.
Reexam info:
The reexamination date/period can be found in the reexam schedule here
More information in Digital Exam in February. In special cases decided by the Department, the re-sit can change to another day and/or time than announced.
More info: Master(UK) and Master (DK).
Criteria for exam assessment
Students are assessed on the extent to which they master the learning outcome for the course.
In order to obtain the top grade “12”, the student must with no or only a few minor weaknesses be able to demonstrate an excellent performance displaying a high level of command of all aspects of the relevant material and can make use of the knowledge, skills and competencies listed in the learning outcomes.
In order to obtain the passing grade “02”, the student must in a satisfactory way be able to demonstrate a minimal acceptable level of the knowledge, skills and competencies listed in the learning outcomes.
Single subject courses (day)
- Category
- Hours
- Lectures
- 42
- Preparation
- 161
- Exam
- 3
- English
- 206
Kursusinformation
- Language
- English
- Course number
- AØKK08202U
- ECTS
- 7,5 ECTS
- Programme level
- Full Degree Master
Ph.D.
- Duration
-
1 semester
- Placement
- Autumn
- Price
-
Information about admission and tuition fee: Master and Exchange Programme, credit students and guest students (Open University)
- Studyboard
- Department of Economics, Study Council
Contracting department
- Department of Economics
Contracting faculty
- Faculty of Social Sciences
Course Coordinator
- Peter Norman Sørensen (21-7267766774307071746f63703075717467707567704267657170306d7730666d)
Teacher
See 'Course Coordinators'
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Kursusinformation for indskrevne studerende