06300762 - International finance

This course provides a comprehensive examination of financial analysis techniques applied to international businesses, focusing on valuation, risk assessment, and performance evaluation in a global context. Part 1 introduces key financial statements, ratio analysis, and the impact of exchange rates on financial reporting. Part 2 delves into valuation methods, including Discounted Cash Flow (DCF), Comparative Firm Analysis, and the challenges of assessing multinational corporations. Ideal for those looking to enhance their ability to assess and compare businesses operating across different economic environments.

Estimation of private study (outside of contact hours): 8 hours

DIMENSION OF SOCIAL RESPONSIBILITY

The course also includes a section on ESG reporting, examining sustainability disclosures, regulatory frameworks, and their impact on financial performance and investor decision-making.

TARGETED KNOWLEDGE AND SKILLS 

Financial Analysis – Interpret financial statements and assess foreign exchange impacts.
Valuation Methods – Apply DCF, comparative analysis, and multinational valuation techniques.
ESG Reporting – Understand sustainability disclosures and their financial impact.
Global Financial Decisions – Assess capital structures, taxation, and cross-border operations.
Market Comparisons – Benchmark firms across industries and regions.  

COURSE OUTLINE

1. Financial Statements and accounting principles with FX effects
2. Financial Analysis
3. Market Analysis
4. Capital structure decisions for multinational firms

PRESCRIBED TEXTS AND PUBLICATIONS

1. Vernimmen, P., Quiry, P., & Le Fur, Y. (2022). Corporate finance: theory and practice. John Wiley & Sons.

RECOMMENDED TEXTS AND PUBLICATIONS

1. Robinson, T. R., Henry, E., Pirie, W. L., & Broihahn, M. A. (2012). International financial statement analysis (Vol. 39). John Wiley & Sons.

EMBLEMATIC BOOKS OR RESEARCH PAPERS REGARDING THE SUBJECT OF THE COURSE

1. Hung, M. (2000). Accounting standards and value relevance of financial statements: An international analysis. Journal of accounting and economics, 30(3), 401-420.

TEXTS AND PUBLICATIONS OF IAELYON FACULTY ON THE SUBJECT OF THE COURSE  

1. Balume, F., Gajewski, J. F., & Heimann, M. (2023, June). Managerial Preferences in Financial Distress: The Role of Cognitive Load and Social Value Orientation in Restructuring Decisions. In Financial Engineering and Banking Society (FEBS).
2. Chastenet, E., & Jeannin, G. (2007). Evaluation d'entreprise: quelles sont les méthodes réellement appliquées par les analystes financiers? (No. halshs-00753173).

Individual grade
Written exam, 2h

Other grade(s)
Grading during class
Presentation and Report, 30min

Weight: 60/40

TEACHING METHODS
A mixture of lectures, discussions and exercises.

NATURE OF MATERIALS
Presentations, exercises, out of class readings

TEACHING INNOVATIONS AND USE OF TECHNOLOGY
Online searches, videos and excel files

PRE-REQUISITES IN TERMS OF KNOWLEDGE AND SKILLS
General knowledge in accounting and financial calculus. 

ADVISED PRIOR READING
See prescribed readings

RESOURCES AVAILABLE
Lecture slides, excel sheets and exercises