Corporate Finance Theory

FIN504 Corporate Finance Theory

Autumn 2019

  • 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
    • 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.

Overview

ECTS Credits
10
Teaching language
English. All lectures and coursework (including the students own) are to be completed in English.
Semester

Autumn. Offered autumn 2019. Replaced FIN502 from autumn 2019.

Course responsible

Associate Professor Tore Leite and Associate Professor Francisco Santos, Department of Finance, NHH