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Corporate Finance and Risk ManagementLaajuus (5 cr)

Code: YHYYA310

Credits

5 op

Teaching language

  • English

Responsible person

  • Shabnamjit Hundal, Diploma in IBM

Objective

At the end of this course students should be able to:
- comprehend cost of capital by incorporating relevant benchmarks and risk profiles of firms
- appraise asset valuation
- analyse investment and financing strategies of firms
- justify financing choices in the light of taxation and bankruptcy costs
- assess multiple dynamics of managerial incentives and motivations, and their effects on firm value
- synthesise various aspects of mergers and acquisitions (M&As)
- understanding and application of financial technology (FINTECH)
- compare and use different financial derivative instruments in order to do corporate risk management.

You are expected to acquire the following competencies in this course:

Learning to learn
• You recognize your strengths and needs for learning.
• You make use of learning methods and tools that support your learning best.
• You seek, acquire, and critically assess information from reliable sources.

Proactive development
• You identify development areas by anticipating the future of your field.
• You apply existing knowledge and utilize appropriate research methods in development projects.
• You develop the ability to think out of the box and challenge the limits to come up with creative and innovative solutions.

IBM competence:
Sustainable global business management
• You critically review and understand core concepts of global business management and sustainability from multidisciplinary perspectives of marketing, sales, strategy, finance, and management.
• You apply disciplinary and interdisciplinary knowledge to analyze global business challenges and propose sustainable business solutions to grow new ventures in global markets.

Content

Assets valuation, Capital Structure and Corporate Strategy, Impact of taxes on Financing Choice, Dividend policy & Share Repurchases; Bankruptcy Costs and Debt Holder-Equity Holder Conflicts; Managerial Incentives and Financial Decisions, M&As, Corporate Strategy, Risk Management, and FINTECH. Corporate risk management, quantitative financial analysis, investment analysis, corporate finance, firm leverage and cost of capital, international finance, accounting information analysis, corporate valuation, investment appraisal, strategic management accounting, financial forecasting, sustainable finance, wealth management, behavioral finance, financial technology (FINTECH), financial scandals, executive remuneration financial institutions and markets etc.

Qualifications

Bachelor degree in business or economics or equivalent.

Assessment criteria, satisfactory (1)

Sufficient (1):
You have demonstrated a basic level of knowledge, skills, applications in all the three competences: Learning to learn, Proactive development and Sustainable global business management.

Satisfactory (2):
You have demonstrated an intermediate level of knowledge, skills, applications in one and basic level in the remaining two competences out of a total three competences: Learning to learn, Proactive development and Sustainable global business management.

Assessment criteria, good (3)

Good (3):
You have demonstrated an excellent level of knowledge, skills, applications in one and intermediate level in the remaining two competences out of a total three competences: Learning to learn, Proactive development and Sustainable global business management.

Very good (4):
You have demonstrated an excellent level of knowledge, skills, applications in two and intermediate level in the remaining competence out of a total three competences: Learning to learn, Proactive development and Sustainable global business management.

Assessment criteria, excellent (5)

You have demonstrated an excellent level of knowledge, skills, applications in all the three competences: Learning to learn, Proactive development and Sustainable global business management.

Materials

Lecture slides, case studies, spreadsheets, textbooks, research articles, videos, assignments, online resources etc. Please check learning platform on regular basis.

Main text book options
-Richard A. Brealey, Stewart C. Myers and Franklin Allen, Principles of Corporate Finance, 13th Edition (2019). The McGraw-Hill.
- Stephen Ross and Randolph Westerfield and Jeffrey Jaffe and Bradford Jordan, Corporate Finance, 12th Edition (2018). The McGraw-Hill.
- Jonathan Berk and Peter DeMarzo, Corporate Finance, 5th Edition (2020). Pearson.

Other books
-Mark Grinblatt and Sheridan Titman, Financial Markets & Corporate Strategy,
- Glen Arnold, Corporate Financial Management
- Stephen Lofthouse, Investment Management
- Jeff Madura, International Financial Management
-Or any other text on introductory Financial Management

On-line sources
• https://www.youtube.com/channel/UCeZf5FUwF9LrvdnjXhiCGKQ/videos
The above channel is run by the lecturer himself.
• https://www.investing.com
• https://uk.finance.yahoo.com
• https://finance.yahoo.com
• http://www.nasdaqomxnordic.com
• http://www.worldbank.org
• http://www.oecd.org
• https://www.bloomberg.com
• https://www.reuters.com
• https://www.bbc.com
• http://ssrn.com

Further information

Furthermore, you will understand the dynamics of the global business environment through the extensive and intensive training of concepts, skills, and techniques applied in the field of sustainable finance. You will also explore the fundamentals issues of finance and dynamics related to the financing of sustainable new ventures, investment planning, and financing decisions based on financial analysis.

You will explore issues related to financial stability and sustainability by incorporating multiple risk factors and dynamic institutional settings and corporate environment. Promoting moral and ethical mindset and conduct to ascertain and disclose true and unbiased financial health of the companies are the strategic concepts, among others, that you will learn to understand and apply in the financial decision-making process. You will also study safeguarding interests of different stakeholders in an unbiased manner to promote the corporate value system, which is humane, fair and equitable.

Communicating the inferences made and interpretations drawn based on the financial data analysis responsibly, effectively and professionally in English, including in written reports, presentations, formal correspondence, and on social media are some of the key aspects that you will learn in this course. You will get several opportunities to participate enthusiastically in inter- and multicultural settings, demonstrate team building and leadership skills, and implement conflict resolution skills in numerous situations.

Enrollment

07.02.2022 - 28.02.2022

Timing

07.03.2022 - 27.05.2022

Number of ECTS credits allocated

5 op

Virtual portion

2 op

Mode of delivery

60 % Face-to-face, 40 % Online learning

Unit

School of Business

Campus

Main Campus

Teaching languages
  • English
Seats

5 - 40

Teachers
  • Stefan Petrov
  • Shabnamjit Hundal
  • Tatyana Kauppinen
  • Sehar Imran
Groups
  • YBB22VK
    Master's Degree Programme in International Business, vaihto-opiskelu/Exchange studies
  • YBB22VKN
    Master’s Degree in International Business Management, EM Normandie
  • HKV22KDIBM1
    Diploma in International Business Management
  • HKV22KDIBM2
    Diploma in International Business Management
  • ZJA22KH
    Avoin AMK, lita

Objectives

At the end of this course students should be able to:
- comprehend cost of capital by incorporating relevant benchmarks and risk profiles of firms
- appraise asset valuation
- analyse investment and financing strategies of firms
- justify financing choices in the light of taxation and bankruptcy costs
- assess multiple dynamics of managerial incentives and motivations, and their effects on firm value
- synthesise various aspects of mergers and acquisitions (M&As)
- understanding and application of financial technology (FINTECH)
- compare and use different financial derivative instruments in order to do corporate risk management.

You are expected to acquire the following competencies in this course:

Learning to learn
• You recognize your strengths and needs for learning.
• You make use of learning methods and tools that support your learning best.
• You seek, acquire, and critically assess information from reliable sources.

Proactive development
• You identify development areas by anticipating the future of your field.
• You apply existing knowledge and utilize appropriate research methods in development projects.
• You develop the ability to think out of the box and challenge the limits to come up with creative and innovative solutions.

IBM competence:
Sustainable global business management
• You critically review and understand core concepts of global business management and sustainability from multidisciplinary perspectives of marketing, sales, strategy, finance, and management.
• You apply disciplinary and interdisciplinary knowledge to analyze global business challenges and propose sustainable business solutions to grow new ventures in global markets.

Content

Assets valuation, Capital Structure and Corporate Strategy, Impact of taxes on Financing Choice, Dividend policy & Share Repurchases; Bankruptcy Costs and Debt Holder-Equity Holder Conflicts; Managerial Incentives and Financial Decisions, M&As, Corporate Strategy, Risk Management, and FINTECH. Corporate risk management, quantitative financial analysis, investment analysis, corporate finance, firm leverage and cost of capital, international finance, accounting information analysis, corporate valuation, investment appraisal, strategic management accounting, financial forecasting, sustainable finance, wealth management, behavioral finance, financial technology (FINTECH), financial scandals, executive remuneration financial institutions and markets etc.

Learning materials and recommended literature

Brealey, R.A., Myers, S.C., & Allen, F. Principles of Corporate Finance, 10th Edition.
Grinblatt, M. & Titman, S. 2001. Financial Markets and Corporate Strategy. 2nd edition, McGraw Hill.
Shapiro, A. 2006. Multinational Financial Management, 8th Edition, J. Wiley & Sons.
Madura, J. 2000. International Financial Management, 10th edition, South-Western College Publishing (A division of International Thomson Publishing Inc.)

Recommended research articles

Lecture notes, recorded lectures and exercises.

http://www.economist.com/
http://www.ssrn.com/en/
http://www.reuters.com/
https://www.investing.com/
http://uk.finance.yahoo.com/
http://europe.wsj.com/home-page
http://courses.wallstreetsurvivor.com/invest-smarter/
http://www.fintech.finance/

Teaching methods

In-classroom teaching, online teaching, recorded videos, and self-study

Exam dates and retake possibilities

There will be an exam carrying 40% of total credits and assignments carrying 60% of total credits.

International connections

There is a possibility of participation in the international projects.

Student workload

Lectures 27 h
Assignments 54 h
Independent study 54 h
Total 135h ( one credit equals 27 hours of student work)

Further information for students

Open UAS 3

Evaluation scale

0-5

Evaluation criteria, satisfactory (1-2)

Sufficient (1):
You have demonstrated a basic level of knowledge, skills, applications in all the three competences: Learning to learn, Proactive development and Sustainable global business management.

Satisfactory (2):
You have demonstrated an intermediate level of knowledge, skills, applications in one and basic level in the remaining two competences out of a total three competences: Learning to learn, Proactive development and Sustainable global business management.

Evaluation criteria, good (3-4)

Good (3):
You have demonstrated an excellent level of knowledge, skills, applications in one and intermediate level in the remaining two competences out of a total three competences: Learning to learn, Proactive development and Sustainable global business management.

Very good (4):
You have demonstrated an excellent level of knowledge, skills, applications in two and intermediate level in the remaining competence out of a total three competences: Learning to learn, Proactive development and Sustainable global business management.

Evaluation criteria, excellent (5)

You have demonstrated an excellent level of knowledge, skills, applications in all the three competences: Learning to learn, Proactive development and Sustainable global business management.

Prerequisites

Bachelor degree in business or economics or equivalent.

Further information

Furthermore, you will understand the dynamics of the global business environment through the extensive and intensive training of concepts, skills, and techniques applied in the field of sustainable finance. You will also explore the fundamentals issues of finance and dynamics related to the financing of sustainable new ventures, investment planning, and financing decisions based on financial analysis.

You will explore issues related to financial stability and sustainability by incorporating multiple risk factors and dynamic institutional settings and corporate environment. Promoting moral and ethical mindset and conduct to ascertain and disclose true and unbiased financial health of the companies are the strategic concepts, among others, that you will learn to understand and apply in the financial decision-making process. You will also study safeguarding interests of different stakeholders in an unbiased manner to promote the corporate value system, which is humane, fair and equitable.

Communicating the inferences made and interpretations drawn based on the financial data analysis responsibly, effectively and professionally in English, including in written reports, presentations, formal correspondence, and on social media are some of the key aspects that you will learn in this course. You will get several opportunities to participate enthusiastically in inter- and multicultural settings, demonstrate team building and leadership skills, and implement conflict resolution skills in numerous situations.