Corporate Finance Theory

FIN502 Corporate Finance Theory

Spring 2019

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:


    Explain the fundamental concepts in advanced corporate finance theory

    Relate theoretical concepts in corporate finance to relevant empirical research



    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.

  • Requirements for course approval

    Three written assignments.

  • Assessment

    Three written assignments during the course (1/3 each).

  • Grading Scale

    Grading scale A - F.

  • Computer tools


  • Literature

    Jean Tirole (2005), The Theory of Corporate Finance

    In addition, a number of articles will be assigned.


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

Autumn, not offered autumn 2018

Course responsible

Tore Leite, deptartment of Finance