AØKK08116U Seminar: Applied Corporate Finance

Volume 2014/2015
Education
M.Sc, of Economics
The course is a part of the financial line, signified by (F)
(Only available for Master students at Department of Economics)
Content

Ideas for topics:

  1. Valuation of a company
  2. Optimal capital structure
  3. Practical implications / examples of financial distress behavior
  4. Asset specificity and capital structure
  5. Intra-Industrial comparison of companies
  6. Qualitative research (e.g. interview) of a (big) company
  7. Strategic / game theoretical corporate finance
  8. Practical implications of a theoretical challenge
  9. Etc.
Learning Outcome

The idea of the seminar is for students to think about a corporate finance scenario in practice and relate it to theory. It is up to the students to define the “applied” part of the paper but it should be clear from both paper and presentation.

Will be decided by the teacher in collaboration with the students.

Qualifications:
1. Understand basics of corporate finance theory. This includes CAPM, Fixed Income basics, derivatives, real options and capital structure theory.
2. Understanding basic financial statement analysis.

Suggested additional reading if no master level qualification:
Student who have not yet had master level courses in finance should read the curriculum of the master level course Corporate Finance Theory:
1. Albert Banal-Estañol, Marco Ottaviani and Andrew Winton (2011), “Separate or Joint Financing? Coinsurance, Risk Contamination, and Optimal Conglomeration with Bankruptcy Costs,” manuscript, Universitat Pompeu Fabra.
2. Heitor Almeida, Murillo Campello and Dirk Hackbarth (2011), “Liquidity Mergers,” Journal of Financial Economics, 102(3), 526–558.
3. Paul Povel and Rajdeep Singh (2010): “Stapled Finance,” Journal of Finance 65(3), 927–953.
4. Marc Martos-Vila, Matthew Rhodes-Kropf and Jarrad Harford (2012), “Financial vs. Strategic Buyers,” Harvard Business School Working Paper 12-098.
5. Onur Bayar and Thomas J. Chemmanur (2011), “IPOs versus Acquisitions and the Valuation Premium Puzzle: A Theory of Exit Choice by Entrepreneurs and Venture Capitalists,” Journal of Financial and Quantitative Analysis 46(6), 1755–1793.
6. Alex Edmans and Qi Liu (2011): “Inside Debt,” Review of Finance, 15, 75–102.
7. Peter M. DeMarzo, Dmitry Livdan and Alexei Tchistyi (2011), “Risking Other People’s Money: Gambling, Limited Liability, and Optimal Incentives,” Stanford and UC Berkeley mimeo.
Planning meeting ind the begining of the semester,informed by the teacher, writing seminar paper during the semester and presentations at the end of the semester. More informations will be uploaded at Absalon by the teacher.

Week 6/7: Intro meeting **
Week 10: Submission of commitment paper
Week 14: Process meeting (voluntary)
Week 17: Submission of presentation paper
Week 18/19: Presentations of papers and feedback*. Presentation will be placed after 4PM in order to minimize conflicts with other courses and work.
Week 22: Submission of final paper*

* Approximately a month after the presentation round, students re-submit an edited version of their papers. The aim is that students use the presentation round as an opportunity to search for, and get constructive feedback, and incorporate this into the final papers.

** There is a likely risk that I will be traveling from January to the end March, 2015. In that case the intro meeting and other individual meeting will be conducted via Skype (it is possible to be up to 25 participants in a Skype meeting).
Meetings and presentations will be scheduled after 4PM to minimize interference with regular study- and work obligations.
  • Category
  • Hours
  • Exam
  • 0,3
  • Seminar
  • 0
  • Total
  • 0,3
Credit
7,5 ECTS
Type of assessment
Written assignment
Oral examination, 20 min under invigilation
A written seminar paper and a oral presentation for the others participans at the seminar.
Exam registration requirements
Attendance on the seminar. The mandatory commitment paper and seminar paper have been handed in at deadline.
Aid

Al aids for the written seminarpaper.

For the oral presentation the slices for the presentation. The teather can specifiy what els is allowed.

Marking scale
7-point grading scale
Censorship form
External censorship
up to 20 % censorship at the seminarpaper
Exam period
Is decided and informed by the teacher at the compulsive planningmeeting.
Re-exam
As ordinary.
Criteria for exam assesment

The student must in a satisfactory way demonstrate that he/she has mastered the learning outcome of the course.