FIN504 Corporate Finance Theory

• Topics

  1. Capital Structure: Modigliani and Miller
  2. Agency Considerations in Corporate Finance
  3. Corporate Governance and Control
  4. Optimal Security Design
  5. Debt Structure and Seniority
  6. Asymmetric Information and Signaling
  7. Theory of the Firm

• Learning outcome

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

  Knowledge:

  • Explain the fundamental concepts in advanced corporate finance theory
  • Relate theoretical concepts in corporate finance to relevant empirical research

  Skills:

  • explain intuitively as well as mathematically the topics covered
  • effectively read and understand research papers in corporate finance theory
  • understand different empirical settings used to test corporate finance theories
  • expand on some of the topics to the level of developing own research ideas

• Teaching

  Regular lectures.

• Required prerequisites

  Good knowledge of finance and microeconomic concepts & tools at the intermediate level.

• Assessment

  Four written assignments during the course (1/4 each).

• Grading Scale

  Grading scale A - F.

• Computer tools

  none

• Literature

  Jean Tirole (2005), The Theory of Corporate Finance

  In addition, a number of articles will be assigned.