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1040329 |
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Course |
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| Advanced Corporate Finance | ||
Faculty |
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| Associate Professor Ramona Westermann | ||
Course Coordinator |
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| Associate Professor Ramona Westermann | ||
Prerequisites |
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| Participants are assumed to have a broad knowledge of basic Corporate Finance corresponding to a textbook such as Corporate Finance (Berk and de Marzo). Furthermore, participants should have some familiarity with derivatives, portfolio theory, basic statistics and probability theory, optimization problems, and vectors and matrices. | ||
Aim |
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To provide participants with a firm, rigorous and state-of-the-art knowledge and understanding of corporate finance theory and empirics. The course covers fundamental concepts, relations, and models, and it also outlines most recent developments. Both static and dynamic models are discussed, as well as topics in empirical corporate finance. The course also discusses research dissemination including various types of presentations and the publication process. Course topics include capital structure, corporate liquidity management and payout policy, corporate investment decisions, and agency conflicts and executive compensation. In addition, the course discusses recent developments in corporate finance, including asset pricing implications of corporate finance theories as well as corporate finance and the macro economy. |
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Course content |
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Teaching style |
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Lectures and exercises. The lectures will mainly be based on research papers. In some cases, it may be convenient to consult a textbook such as Berk and deMarzo (2017). The exercises contain the following elements: • Two major problem sets (individual assignments) to hand in: – Problem set 1: Solving, programming, and analyzing a model previously discussed in the lecture, but with a minor extension – Problem set 2: Replicating the main results of an empirical paper Solutions are discussed in exercise sessions. • Additional problem sets to be solved before the exercise session. Solutions are presented and discussed by students. • A referee report. A list of papers for referee reports will be distributed by mid/end September. • Student presentations of core papers. Allow 30 minutes plus questions and discussion. Each student has to present twice. Students have to pass the written assignments and the presentations before they are allowed to take the final exam. |
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Lecture plan |
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Tentative content and schedule: Lectures 1-3: Capital structure (Introduction, costs and benefits of corporate debt, signaling models, empirical insights) Lectures 4-5: Payout policy and liquidity management (Introduction, theory and evidence of dividends, empirical patterns of dividends and repurchases, empirical evidence of corporate liquidity management, modeling liquidity management) Lectures 6-7: Investment (Empirical evidence, real option theory and applications, q-theory of investment, investment under competition) Lecture 8: Agency conflicts and executive compensation (Introduction, manager-shareholder agency conflicts, executive compensation, more recent developments) Lecture 9: Asset pricing implications of corporate finance Lecture 10: Corporate finance and macroeconomic conditions (Theory and evidence) Lecture 11: tba |
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Learning objectives |
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| The students should demonstrate a solid knowledge of the key concepts, methods, theories, and empirical evidence in classical and contemporary corporate finance research. They should be able to understand and assess new corporate finance research papers and position such papers in the general corporate finance literature. | ||
Exam |
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The course ends with a final oral exam. The student draws a paper from the curriculum. The student then has 20 minutes to prepare an oral presentation of the paper. The examination lasts 20 minutes including the time the examiner needs to determine the grade and communicate it to the student. The examination begins with the student giving the prepared presentation for about 5-7 minutes, possibly interrupted by questions by the examiner. Towards the end of the exam, the examiner will ask supplementary questions related to other papers from the curriculum.
The exam takes place Wednesday 11 December 2019 at in A5.32 - preparation room A4.10, first student starts at 9 am. |
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Other |
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Start date |
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| 05/09/2019 | ||
End date |
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| 21/11/2019 | ||
Level |
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| PhD | ||
ECTS |
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| 7.5 | ||
Language |
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| English | ||
Course Literature |
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Fee |
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| DKK 9,750 | ||
Minimum number of participants |
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| 5 | ||
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Maximum number of participants |
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| 10 | ||
Location |
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Copenhagen Business School Solbjerg Plads 3 - room A5.32 2000 Frederiksberg Thursdays from 9-13 |
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Contact information |
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PhD Support Bente S. Ramovic bsr.research@cbs.dk tel: +45 3815 3138 |
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Registration deadline |
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| 12/08/2019 | ||
| Please note that the registration is binding after the registration deadline. | ||