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Antitrust
and Regulation |
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CORPORATE FINANCE
Professor: Alexei Goriaev TA: Andrei Rachinsky, arachins@nes.ru Summary The objective of this course is to discuss the most important financial decisions of a firm, covering the recent developments in the field of corporate finance. The course starts with capital budgeting techniques and theories explaining a firm’s capital structure, in particular, the choice between bank and financial market financing. The second part of the course addresses issues related to dividend policy, capital restructuring and corporate governance. The basic course on microeconomic theory is a prerequisite for Corporate Finance. There will be several assignments and a written exam, which accounts for 70 percent of the grade.
The
principal book for this course is Megginson, stressing the economic
intuition behind corporate finance theories and their link to the
empirical evidence. Brealey and Myers is quite basic textbook, while
de Matos is more advanced and with more formal approach.
Syllabus: lectures and references
1. Overview of the course, basics of bond and stock valuation q 1, ch. 1, 4 q 2, ch. 1, 3-4, 14
2-3. Capital budgeting: basic techniques and refinements q 1, ch. 6 q 2, ch. 2, 5-6, 10, 19
4-6. Capital structure: the Modigliani and Miller irrelevance propositions, impact of taxes, bankruptcy and agency costs, empirical tests q 1, ch. 7 q 2, ch. 17-18 q 3, ch. 2-3
7-8. Dividend policy: dividend irrelevance in frictionless capital markets, impact of taxes, the agency and signaling models, empirical tests q 1, ch. 8 q 2, ch. 16 q 3, ch. 4
9-10. Debt structure (bank vs financial market financing), financial contracting and security design q 1, ch. 9 q 2, ch. 24 q 3, ch. 5
11-13. Capital restructuring: initial public offerings, mergers and acquisitions q 1, ch. 9 q 2, ch. 15, 33 q 3, ch. 6-8
14. Corporate governance: market-oriented vs bank-oriented system q 1, ch. 1 |
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