ØABED4800 Advanced Corporate Finance and Research Methodology Emneplan

Corporate finance consists of the financial activities related to running a corporation with a focus on maximizing shareholder value. This course in advanced corporate finance looks at current research articles published in top academic journals to identify how companies implement corporate finance activities in practice.

The goal of this course is twofold. On the one hand, students should become familiar with advanced theories and empirical evidence related to corporate finance decisions, understand the assumptions, applicability, and the limitations of the results. On the other, this course also aims at making students capable of carrying out research projects on their own. We will therefore not only look at the empirical evidence produced in research articles but also analyze the methodology used in those papers and discuss why which method was used or should have been used.

Students will have the opportunity to participate in the research seminar series where distinguished researchers from around the world are presenting their newest work.

Applied Statistical Methods (Statistiske metoder), Econometrics, and Corporate finance (Finansstyring)

None

After completing the course, the student should have the following overall learning outcomes defined in terms of knowledge, skills and general competence:

Knowledge

The student has

• advanced knowledge about how companies raise private and public capital, decide on capital structures and implement valuations
• advanced knowledge about how companies can engage in value enhancing strategies and complete mergers and acquisitions (M&As)
• advanced knowledge about how companies determine payout policies and executive compensation
• advanced knowledge about empirical techniques used in contemporary academic research to test corporate finance theories and when to use them.

Skills

The student can

• review and discuss key concepts in corporate finance
• apply knowledge acquired and relevant theories to his/her work with his/her master's thesis
• use relevant empirical methods to carry out limited empirical research projects.

Competence

The student

• is able to analyze and propose solutions to contemporary corporate finance problems managers of companies face in their day to day business
• can apply his/her knowledge and skills in new areas in order to carry out advanced assignments and projects
• can communicate extensive independent work and masters language and terminology of the academic field
• can communicate about academic issues, analyses, and conclusions in the field, both with specialists and the general public.

• Company structures.
• Private Equity and Venture Capital.
• Initial Public Offerings (IPOs).
• Raising Long term Capital (SEOs + Debt).
• Valuation.
• Mergers and Acquisitions (M&As).
• Value Enhancing Strategies.
• Capital Structure.
• Payout Policy.
• Corporate Governance.
• Executive Compensation.

The course is taught in plenary lectures and students work on and discuss different assignments in groups and plenary sessions. Students are expected to play an active role in lectures and seminars. Students will also be required to discuss papers and course themes during lectures and seminars.

The following coursework requirements must have been approved in order for the student to take the exam:

Students have to hand in written assignments by set deadlines during the semester. The scope of the assignment (number of pages) varies depending on the nature of the assignment. If the assignment is not approved, the student will be given one opportunity to submit an improved version. The lecturer will inform students of deadlines for submission.

Written school exam (4 hours). 

The following aids are permitted:

• One dictionary (Native language-English/English-native language or English-English).
• Calculator (as specified in regulations for use of calculator).

Grade scale A-F.

An internal and an external examiner will grade the exam.

A selection of at least 25% of the exam papers will be assessed by two examiners. The grades awarded to exam papers assessed by the external and internal examiner will be used to determine the level of all exam papers.