Opetussuunnitelmat

Objective

The European Corporate Finance course examines important issues in corporate finance in Europe that you will be studying from the perspective of financial managers, who are responsible for making significant financial decisions. The various contents of the course have been designed in such a way that they not only establish a logical and systematic relationship with each other, but such mutual relationship is also integrated with the strategic decision-making process of corporate functioning in the European business environment. For example you will be studying topics such as assets valuation on the one hand highlighting investing side of companies, however, at the same time you will be studying capital structure, cost of capital and payout policy that highlights financing side of companies. By combining these two sides you will not only be able to demonstrate their mutual interactions but also be able to convey their overall relationship with the corporate strategy in the light of several vital determinants such as tax laws, bankruptcy laws, risk management practices and managerial incentives in Europe.

This course is comprising of various topics including the concept of present value, the opportunity cost of capital, discounted cash flow analysis, valuation techniques, issues between short & long term financial management, risk and return, capital asset pricing model, capital budgeting, corporate capital structure and financing decisions, dividend policy, mergers and acquisitions (M&A), global financial management including exchange including for example exchange rate risk analysis, and issues of corporate governance and control.

You will observe in this course that due importance has also been given to the core theoretical concepts related to each topic to develop intellectual discourse, creative thinking and problem-solving skills. The study of course contents in the light of diverse business environments will enable you to understand diverse theoretical aspects and empirical studies through critical perspectives and contextualize the course contents in various scenario/settings. Similarly, there will be explicit emphasis laid on the quantitative data analysis in this course.

At the end of the course, you are expected to acquire and/or strengthen the following COMPETENCES:

Learning to learn-
You develop critical and analytical mindset that helps you to study and review existing knowledge in the light of relevant learning resources and learning methods; incentivizes you to acquire new knowledge; and develops your intellectual capabilities to seek conclusions and draw inferences in various contexts.
To achieve this competence, you will:
– learn to formulate relevant questions and seek information,
-review relevant theoretical, and empirical literature to comprehend diverse perspectives and evaluate, and interpret arguments and counter-arguments,
-understand new developments in your field of study and make informed decisions based thereon.
- acquire the researcher’s mindset to problematize, explore and understand real-life phenomena especially in the academic track system.

Proactive development-
You develop solutions in the light of current as well as anticipated situations and challenges in business by applying knowledge, critical reasoning and analytical skills. You ensure that these solutions are feasible, relevant, creative, user-friendly, and sustainable as well as underline active cooperation among different actors.
To achieve this competence, you will:
- apply existing knowledge and utilize relevant research methods including digital technology in development projects,
-interpret new evidence in the light of existing body of knowledge, make comparisons and draw inferences,
- express your intellectual contribution through scientific or professional writings,
-understand utility, creativity, viability, scalability, and sustainability of new solutions.

Responsible international business management-
You develop your intellectual capabilities to seek conclusions and draw inferences in an international environment to become responsible manager. You develop creative and insightful solutions to solve complex business problems both in the present and the future with explicit emphasis on local and international standards of ethics, responsibility, and sustainability and implications on various stakeholders.
To achieve this competence, you will:
-study developments in your discipline in the international learning milieu and understand various aspects of responsible business management including global business trends and competitive landscape.
-derive and interpret new evidence and compare them with the existing body of knowledge in the global context to draw useful inferences,
- critically assess the implications of actions and decision of the international organisations.
-understand the impact of the of the actions and decisions on the community, in general, and specific stakeholders, in particular.
-understand core aspects of people management in the international business environment.

Content

Assets valuation, Capital Structure Dynamics 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 (including use of financial derivatives), and Real Options.

Location and time

Timings and venue will be disclosed later.

Oppimateriaali ja suositeltava kirjallisuus

Grinblatt, M. & Titman, S. Financial Markets and Corporate Strategy. McGraw Hill.
Shapiro, A. Multinational Financial Management, 8th Edition, J. Wiley & Sons.
Madura, J. International Financial Management, 10th edition, South-Western College Publishing (A division of International Thomson Publishing Inc.)
Brealey, Richard A., Myers, Stewart C., Allen, Franklin. Principles of Corporate Finance, (Mcgraw-hill/Irwin).
Recommended research articles
Lecture notes, case studies and exercises.

YouTube channel of the course lecturer.
https://www.youtube.com/channel/UCeZf5FUwF9LrvdnjXhiCGKQ/videos

Teaching methods

In classroom teaching including lectures, workshops and presentations.

Exam schedules

A student must do two assignments to complete the course.

International connections

Several opportunities to collaborate with international students, and faculty members.

Student workload

Classroom teaching: 15 hours
Self organized data analysis workshops: 10 hours
Tutoring: 11 hours
Self-study:25 hours
Group-study:20 hours

Further information

Avoin amk 5
EduFutura 5

Evaluation scale

0-5

Arviointikriteerit, tyydyttävä (1-2)

You will get a grade of ‘one’ if you are able to demonstrate a basic level of evidence in the following COMPETENCES-Learning to learn, Proactive development and Responsible international business management.
.
You will get a grade of ‘two’ if you are able to demonstrate satisfactory level of evidence in at-least two COMPETENCES and basic level in one COMPETENCE-Learning to learn, Proactive development and Responsible international business management.

Arviointikriteerit, hyvä (3-4)

Grade 3 and 4:
You will get a grade of ‘three’ if you are able to demonstrate good level of evidence in the following COMPETENCES-Learning to learn, Proactive development and Responsible international business management.

You will get a grade of ‘four’ if you are able to demonstrate an excellent level of evidence in at-least two COMPETENCES and a good level of evidence in one COMPETENCE-Learning to learn, Proactive development and Responsible international business management.

Assessment criteria, excellent (5)

Grade 5: You will get a grade of ‘five’ if you are able to demonstrate an excellent level of evidence in the following COMPETENCES-Learning to learn, Proactive development and Responsible international business management.

Qualifications

Basic knowledge of Economics or any discipline of business studies.

Objective

The European Corporate Finance course examines important issues in corporate finance in Europe that you will be studying from the perspective of financial managers, who are responsible for making significant financial decisions. The various contents of the course have been designed in such a way that they not only establish a logical and systematic relationship with each other, but such mutual relationship is also integrated with the strategic decision-making process of corporate functioning in the European business environment. For example you will be studying topics such as assets valuation on the one hand highlighting investing side of companies, however, at the same time you will be studying capital structure, cost of capital and payout policy that highlights financing side of companies. By combining these two sides you will not only be able to demonstrate their mutual interactions but also be able to convey their overall relationship with the corporate strategy in the light of several vital determinants such as tax laws, bankruptcy laws, risk management practices and managerial incentives in Europe.

This course is comprising of various topics including the concept of present value, the opportunity cost of capital, discounted cash flow analysis, valuation techniques, issues between short & long term financial management, risk and return, capital asset pricing model, capital budgeting, corporate capital structure and financing decisions, dividend policy, mergers and acquisitions (M&A), global financial management including exchange including for example exchange rate risk analysis, and issues of corporate governance and control.

You will observe in this course that due importance has also been given to the core theoretical concepts related to each topic to develop intellectual discourse, creative thinking and problem-solving skills. The study of course contents in the light of diverse business environments will enable you to understand diverse theoretical aspects and empirical studies through critical perspectives and contextualize the course contents in various scenario/settings. Similarly, there will be explicit emphasis laid on the quantitative data analysis in this course.

At the end of the course, you are expected to acquire and/or strengthen the following COMPETENCES:

Learning to learn-
You develop critical and analytical mindset that helps you to study and review existing knowledge in the light of relevant learning resources and learning methods; incentivizes you to acquire new knowledge; and develops your intellectual capabilities to seek conclusions and draw inferences in various contexts.
To achieve this competence, you will:
– learn to formulate relevant questions and seek information,
-review relevant theoretical, and empirical literature to comprehend diverse perspectives and evaluate, and interpret arguments and counter-arguments,
-understand new developments in your field of study and make informed decisions based thereon.
- acquire the researcher’s mindset to problematize, explore and understand real-life phenomena especially in the academic track system.

Proactive development-
You develop solutions in the light of current as well as anticipated situations and challenges in business by applying knowledge, critical reasoning and analytical skills. You ensure that these solutions are feasible, relevant, creative, user-friendly, and sustainable as well as underline active cooperation among different actors.
To achieve this competence, you will:
- apply existing knowledge and utilize relevant research methods including digital technology in development projects,
-interpret new evidence in the light of existing body of knowledge, make comparisons and draw inferences,
- express your intellectual contribution through scientific or professional writings,
-understand utility, creativity, viability, scalability, and sustainability of new solutions.

Responsible international business management-
You develop your intellectual capabilities to seek conclusions and draw inferences in an international environment to become responsible manager. You develop creative and insightful solutions to solve complex business problems both in the present and the future with explicit emphasis on local and international standards of ethics, responsibility, and sustainability and implications on various stakeholders.
To achieve this competence, you will:
-study developments in your discipline in the international learning milieu and understand various aspects of responsible business management including global business trends and competitive landscape.
-derive and interpret new evidence and compare them with the existing body of knowledge in the global context to draw useful inferences,
- critically assess the implications of actions and decision of the international organisations.
-understand the impact of the of the actions and decisions on the community, in general, and specific stakeholders, in particular.
-understand core aspects of people management in the international business environment.

Content

Assets valuation, Capital Structure Dynamics 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 (including use of financial derivatives), and Real Options.

Location and time

Timings and venue will be disclosed later.

Oppimateriaali ja suositeltava kirjallisuus

Grinblatt, M. & Titman, S. Financial Markets and Corporate Strategy. McGraw Hill.
Shapiro, A. Multinational Financial Management, 8th Edition, J. Wiley & Sons.
Madura, J. International Financial Management, 10th edition, South-Western College Publishing (A division of International Thomson Publishing Inc.)
Brealey, Richard A., Myers, Stewart C., Allen, Franklin. Principles of Corporate Finance, (Mcgraw-hill/Irwin).
Recommended research articles
Lecture notes, case studies and exercises.

Pre-recorded lecture videos available at the course lecturer's YouTube channel:
https://www.youtube.com/channel/UCeZf5FUwF9LrvdnjXhiCGKQ/videos

Teaching methods

Fully in-classroom, though occasional reference of pre-recorded lectures will be made.

International connections

Students will be working in a highly meaningful international environment.

Student workload

It is a 3 ECTS course
Lectures = 20 hours
Workshops= 30 hours
Assignments=16 Hours
Review of literature=10 hours
Others=5 hours
TOTAL=81 Hours

Further information

Assignments and presentations.

Evaluation scale

0-5

Arviointikriteerit, tyydyttävä (1-2)

You will get a grade of ‘one’ if you are able to demonstrate a basic level of evidence in the following COMPETENCES-Learning to learn, Proactive development and Responsible international business management.
.
You will get a grade of ‘two’ if you are able to demonstrate satisfactory level of evidence in at-least two COMPETENCES and basic level in one COMPETENCE-Learning to learn, Proactive development and Responsible international business management.

Arviointikriteerit, hyvä (3-4)

Grade 3 and 4:
You will get a grade of ‘three’ if you are able to demonstrate good level of evidence in the following COMPETENCES-Learning to learn, Proactive development and Responsible international business management.

You will get a grade of ‘four’ if you are able to demonstrate an excellent level of evidence in at-least two COMPETENCES and a good level of evidence in one COMPETENCE-Learning to learn, Proactive development and Responsible international business management.

Assessment criteria, excellent (5)

Grade 5: You will get a grade of ‘five’ if you are able to demonstrate an excellent level of evidence in the following COMPETENCES-Learning to learn, Proactive development and Responsible international business management.

Qualifications

Basic knowledge of Economics or any discipline of business studies.