06300676 - Fundamentals of finance and research
| Niveau de diplôme | |
|---|---|
| Crédits ECTS | 6 |
| Volume horaire total | 4E+1 |
| Volume horaire CM | 24 |
| Volume horaire TD | 16 |
Responsables
- YAACUDJOE Eunice
Objectifs
The course has the core objective to analyze the two important corporate financial decisions from a theoretical and practical point of view, the investment and financing decisions.
After a quick remind of basic financial operations, the course presents the main goals of corporations and the logic behind financial decision-making. Then, it deals with corporate financial management and more precisely it provides knowledge and skills to appreciate the return of investments projects. More specifically, after defining the notion of creation value, the course presents the tools for capital budgeting in situations of certainty and uncertainty. Consecutive to investment analysis, the following part presents the main sources of financing (i.e., debt, private equity public equity and hybrid securities) and the criteria of choice between the different means. The funding decision is first based on a comparison of sources of financing and analyzed through the theory of capital structure. Aditionnally, the course presents some notions of financial analysis and audit.
TARGETED KNOWLEDGE AND SKILLS
After the course, the students should be able to understand how firms select investment projects, how corporate managers raise capital. Finally, the students should have some notions in financial analysis and audit.
This is an introductory course to corporate finance. If you want to go more deeply in corporate finance, you will have to choose courses more linked to accounting and advanced courses in the theory of corporate finance. There is no perequisite. However, some basic notions of mathematics or economics could be useful.
Acquire the vocabulory of finance in English. Better know the corporate decisions, capital budgeting and raising capital.
After a quick remind of basic financial operations, the course presents the main goals of corporations and the logic behind financial decision-making. Then, it deals with corporate financial management and more precisely it provides knowledge and skills to appreciate the return of investments projects. More specifically, after defining the notion of creation value, the course presents the tools for capital budgeting in situations of certainty and uncertainty. Consecutive to investment analysis, the following part presents the main sources of financing (i.e., debt, private equity public equity and hybrid securities) and the criteria of choice between the different means. The funding decision is first based on a comparison of sources of financing and analyzed through the theory of capital structure. Aditionnally, the course presents some notions of financial analysis and audit.
TARGETED KNOWLEDGE AND SKILLS
After the course, the students should be able to understand how firms select investment projects, how corporate managers raise capital. Finally, the students should have some notions in financial analysis and audit.
This is an introductory course to corporate finance. If you want to go more deeply in corporate finance, you will have to choose courses more linked to accounting and advanced courses in the theory of corporate finance. There is no perequisite. However, some basic notions of mathematics or economics could be useful.
Acquire the vocabulory of finance in English. Better know the corporate decisions, capital budgeting and raising capital.
Contenu
COURSE OUTLINE
The course will be divided into 6 topics. For each topic, reading the correspondent chapters from BMH is strongly recommended.
Topic 1_Introduction to firms’ financial decision-making (BMH, Chapters 3 and 4)
Topic 2_The analysis of interest rates and bond financing (BMH, Chapters 5 and 6)
Topic 3_Introduction to financial statement analysis (BMH, Chapter 2)
Topic 4_The analysis of investment decisions and capital budgeting (BMH, Chapters 8 and 9)
Topic 5_The analysis of corporate financing policy (BMH, Chapters 13 and 14)
Topic 6_Some notions of audi
The course will be divided into 6 topics. For each topic, reading the correspondent chapters from BMH is strongly recommended.
Topic 1_Introduction to firms’ financial decision-making (BMH, Chapters 3 and 4)
Topic 2_The analysis of interest rates and bond financing (BMH, Chapters 5 and 6)
Topic 3_Introduction to financial statement analysis (BMH, Chapter 2)
Topic 4_The analysis of investment decisions and capital budgeting (BMH, Chapters 8 and 9)
Topic 5_The analysis of corporate financing policy (BMH, Chapters 13 and 14)
Topic 6_Some notions of audi
Bibliographie
PRESCRIBED TEXTS AND PUBLICATIONS
Berk J., DeMarzo P. and Harford J., Fundamentals of Corporate Finance, 2021, Pearson, 5th edition, global edition, Pearson, BMH.
RECOMMENDED TEXTS AND PUBLICATIONS
Berk J. and DeMarzo P. Corporate Finance, 2020, Pearson, 5th edition, global edition, Pearson.
Brealey R., Myers S. and Allen F. Principles of corporate finance. 2013. Ed. McGraw-Hill.
Damodaran A. Corporate Finance. 2003. Ed. Wiley.
Emery D.R., Finnerty J.D. and Stowe J.D. Corporate Financial Management. 2006. Ed. Prentice Hall.
Gallagher T.J. and Andrew J.D. Financial Management. 2002. Ed. Prentice Hall.
Gitman L. J. Principles of Managerial Finance. 2011. Ed. Addison Wesley.
Pike R. and Neale B. Corporate Finance and Investment. 2008. Ed. Prentice Hall.
Shapiro A.C. and Sheldon D.B. Modern Corporate Finance. 1999. Ed. Prentice Hall.
Tirole J. the theory of corporate finance, 2006, Princeton University Press.
Van Horne J.C. et Wachowicz J.M. Fundamentals of Financial Management. 2008. Ed. Prentice Hall.
EMBLEMATIC BOOKS OR RESEARCH PAPERS REGARDING THE SUBJECT OF THE COURSE
Graham J.R. and Harvey C.R., 2001, “The theory and practice of corporate finance: evidence from the field”, Journal of Financial Economics 60, 187-243.
Li K. Griffin D., Yue H. and Zhao L., 2013, “How does culture influence corporate risk-taking?”, Journal of Corporate Finance 23, 1-22.
Brav A., Graham J.R., Harvey C.R. and Michaely R., 2005, “Payout policy in the 21st century”,
Journal of Financial Economics 77, 483–527.
Baker M. and Wurgler J., 2002, « Market timing and capital structure », Journal of Finance 51(1), 1-32.
DeAngelo H. and Roll R., 2015, « How stable are corporate capital structures », Journal of Finance 70(1), 373-417.
Shyam-Sunder L. and Myers S.C., 1999, “Testing static tradeoff against pecking order models of capital structure”, Journal of Financial Economics 51, 219-244.
Graham J.R., Harvey C.R. and Puri M., 2013, “Managerial attitudes and corporate actions”, Journal of Financial Economics 109, 103-121.
Malmendier U. and Tate G., 2008, “Who makes acquisitions? CEO Overconfidence and the market’s reaction”, Journal of Financial Economics 89, 20-43.
TEXTS AND PUBLICATIONS OF IAELYON FACULTY ON THE SUBJECT OF THE COURSE
Bouzouita N., Gajewski J.-F. and Gresse C., 2015, “Liquidity benefits from IPO underpricing: ownership dispersion or information effect”, Financial Management 44(4), 785-810.
Boutron E., Gajewski J.-F., Gresse C. and Labégorre F., 2007, « Are IPOs Still a puzzle? A survey of the Empirical Evidence from Europe », Finance, v28(2), 5-41.
Gajewski J.-F. and Ginglinger E., 2002, Seasoned equity issues in a closely held market: evidence from France, Review of Finance 6(3), p. 291-319.
Gajewski J.-F., Ginglinger E. and Lasfer M., 2007, « Why do companies include warrants in seasoned equity offerings? », Journal of Corporate Finance, v13(1), 25-42.
Gajewski J.‐F., Heimann M. and Meunier L., 2021, « Nudges in SRI: The Power of the Default Option », Journal of Business Ethics, Springer Verlag, https://link.springer.com/article/10.1007%2Fs10551-020-04731-x.
Berk J., DeMarzo P. and Harford J., Fundamentals of Corporate Finance, 2021, Pearson, 5th edition, global edition, Pearson, BMH.
RECOMMENDED TEXTS AND PUBLICATIONS
Berk J. and DeMarzo P. Corporate Finance, 2020, Pearson, 5th edition, global edition, Pearson.
Brealey R., Myers S. and Allen F. Principles of corporate finance. 2013. Ed. McGraw-Hill.
Damodaran A. Corporate Finance. 2003. Ed. Wiley.
Emery D.R., Finnerty J.D. and Stowe J.D. Corporate Financial Management. 2006. Ed. Prentice Hall.
Gallagher T.J. and Andrew J.D. Financial Management. 2002. Ed. Prentice Hall.
Gitman L. J. Principles of Managerial Finance. 2011. Ed. Addison Wesley.
Pike R. and Neale B. Corporate Finance and Investment. 2008. Ed. Prentice Hall.
Shapiro A.C. and Sheldon D.B. Modern Corporate Finance. 1999. Ed. Prentice Hall.
Tirole J. the theory of corporate finance, 2006, Princeton University Press.
Van Horne J.C. et Wachowicz J.M. Fundamentals of Financial Management. 2008. Ed. Prentice Hall.
EMBLEMATIC BOOKS OR RESEARCH PAPERS REGARDING THE SUBJECT OF THE COURSE
Graham J.R. and Harvey C.R., 2001, “The theory and practice of corporate finance: evidence from the field”, Journal of Financial Economics 60, 187-243.
Li K. Griffin D., Yue H. and Zhao L., 2013, “How does culture influence corporate risk-taking?”, Journal of Corporate Finance 23, 1-22.
Brav A., Graham J.R., Harvey C.R. and Michaely R., 2005, “Payout policy in the 21st century”,
Journal of Financial Economics 77, 483–527.
Baker M. and Wurgler J., 2002, « Market timing and capital structure », Journal of Finance 51(1), 1-32.
DeAngelo H. and Roll R., 2015, « How stable are corporate capital structures », Journal of Finance 70(1), 373-417.
Shyam-Sunder L. and Myers S.C., 1999, “Testing static tradeoff against pecking order models of capital structure”, Journal of Financial Economics 51, 219-244.
Graham J.R., Harvey C.R. and Puri M., 2013, “Managerial attitudes and corporate actions”, Journal of Financial Economics 109, 103-121.
Malmendier U. and Tate G., 2008, “Who makes acquisitions? CEO Overconfidence and the market’s reaction”, Journal of Financial Economics 89, 20-43.
TEXTS AND PUBLICATIONS OF IAELYON FACULTY ON THE SUBJECT OF THE COURSE
Bouzouita N., Gajewski J.-F. and Gresse C., 2015, “Liquidity benefits from IPO underpricing: ownership dispersion or information effect”, Financial Management 44(4), 785-810.
Boutron E., Gajewski J.-F., Gresse C. and Labégorre F., 2007, « Are IPOs Still a puzzle? A survey of the Empirical Evidence from Europe », Finance, v28(2), 5-41.
Gajewski J.-F. and Ginglinger E., 2002, Seasoned equity issues in a closely held market: evidence from France, Review of Finance 6(3), p. 291-319.
Gajewski J.-F., Ginglinger E. and Lasfer M., 2007, « Why do companies include warrants in seasoned equity offerings? », Journal of Corporate Finance, v13(1), 25-42.
Gajewski J.‐F., Heimann M. and Meunier L., 2021, « Nudges in SRI: The Power of the Default Option », Journal of Business Ethics, Springer Verlag, https://link.springer.com/article/10.1007%2Fs10551-020-04731-x.
Contrôles des connaissances
Individual grade
MCQ and exercises, 2h
MCQ and exercises, 2h
Informations complémentaires
TEACHING METHODS
Slides and exercises.
TEACHING INNOVATIONS AND USE OF TECHNOLOGY
The teaching allows, thanks to MCQ and the use of applications on smartphone, to facilitate the acquisition of theoretical knowledge. Learning and practice are achieved through the analysis of concrete cases or real situations.
PRE-REQUISITES IN TERMS OF KNOWLEDGE AND SKILLS
Financial economics, financial theory of the firm, financial accounting, financial modeling techniques.
ADVISED PRIOR READING
Berk J., DeMarzo P. and Harford J., Fundamentals of Corporate Finance, 2021, Pearson, 5th edition, global edition, Pearson, BMH.
Slides and exercises.
TEACHING INNOVATIONS AND USE OF TECHNOLOGY
The teaching allows, thanks to MCQ and the use of applications on smartphone, to facilitate the acquisition of theoretical knowledge. Learning and practice are achieved through the analysis of concrete cases or real situations.
PRE-REQUISITES IN TERMS OF KNOWLEDGE AND SKILLS
Financial economics, financial theory of the firm, financial accounting, financial modeling techniques.
ADVISED PRIOR READING
Berk J., DeMarzo P. and Harford J., Fundamentals of Corporate Finance, 2021, Pearson, 5th edition, global edition, Pearson, BMH.