FIN504B Corporate Finance I

• Topics

  The course follows up on the theory of corporate finance presented in FIN504A. In particular, students will use the material acquired in FIN504A -- such as the effect of agency problems and asymmetric information on the firm's choice of funding source, the design of securities, and the choice of debt maturity structure, how corporate monitoring may reduce agency costs, and how consumer liquidity demand may lead to bank runs -- to read and present current research articles on these topics.

• Learning outcome

  FIN504B is a continuation of FIN504A, shifting the focus from theoretical models to the empirical analysis of corporate finance. The course emphasizes the application of econometric tools, the interpretation of data, and critical engagement with empirical research design.

  The candidate will on successfully completing the course, be able to:

  Knowledge

  • relate theoretical concepts in corporate finance to empirical questions, demonstrating how core models inform hypotheses that can be tested with data.
  • understand the design and interpretation of empirical studies in corporate finance, including data structure, identification strategies, and key econometric approaches.

  Skills

  • effectively read, discuss, and present research papers in corporate finance, with an emphasis on evaluating data sources, research design, identification strategies, and empirical methods used in leading academic studies.
  • expand on some of the topics to the level of developing own research ideas, by formulating empirically testable questions, recognizing suitable data and methods, and situating ideas within the broader academic literature.

• Teaching

  Regular lectures with student presentations

• Restricted access

  • PhD candidates at NHH
  • PhD candidates at Norwegian institutions

• Required prerequisites

  Students must take FIN504A prior to FIN504B.

• Compulsory Activity

  None.

• Assessment

  Individual take-home referee report.

  Students will have three weeks to write the report.

• Grading Scale

  Pass/fail.

• Computer tools

  none

• Literature

  A number of articles will be assigned.

• Retake

  Re-take is offered the semester after the course was offered for students who signed up for the initial evaluation. Additionally, the students must fulfill one of the two requirements listed below in order to be eligible for re-take:

  • Students who, at the original exam failed or got a grade below C
  • Students who were sick on the day of the exam and has provided a valid sick note ("sykemelding")

  Students will have the opportunity to submit a revised version of their work for the re-take assessment. If a revised version of the work is submitted, this must be clearly indicated on the front page.