Financing Sustainable New VenturesLaajuus (5 cr)

Objective

The course aims to provide you with an understanding of the multiple aspects of financing for sustainable new ventures ranging from theoretical to practical standpoints. You are able to understand, explore, and analyze multiple aspects related to business operations, strategic decision-making, and investing of sustainable projects initiated by the publicly traded companies, start-ups and early stage enterprises in the global markets through the lenses diverse financial perspectives.

You will understand conceptual aspects and their practical applications from the point of view of investors and finance managers with respect to corporate risk, and return dynamics, quantitative financial analysis, investment analysis, corporate finance, international finance, corporate valuation, financial forecasting, financial institutions and markets. Furthermore, you will learn new developments taking place in the financial sector such as financial technology (FINTECH) and digitalization.

You will learn several analytical tools and techniques of fundamental and technical analysis and draw necessary inferences followed by the decision-making based thereon.

At the end of this course you be able to:
-critically evaluate relevance of various forms of financing sustainable ventures and their pros and cons.
- comprehend theoretical and practical dimensions cost of capital using relevant benchmarks and risk profiles of firms.
- make asset valuation of sustainable new ventures
- analyze investment and financing strategies of firms
- justify financing choices in the light of taxation, foreign exchange and bankruptcy costs
- understand multiple dynamics of capital markets and financial planning in the global context
-comprehend the key financial considerations and dynamics when launching a sustainable new venture;
-understand and apply various performance metrics/measures of sustainable new venture;
-develop the financial models that are compatible with the firm’s future growth and also incorporates firm-level characteristics;
-compare diverse financial sources that support a new venture in the light of risk exposures;
-understand the role of technological developments and governance issues

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

Fundamentals of risk-return, Capital Asset Pricing Model (CAPM), Arbitrage Pricing Model, Modigliani-Miller theorems, Venture capital, P2P lending, Crowdfunding, Project valuation techniques, Cost of capital, Capital structure dynamics, ESG Score and Firm Performance, FINTECH and digital innovations.

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.

Execution methods

The primary modes of delivery are face-to-face learning (lectures, workshops, presentations). Attendance is mandatory, any unauthorized absence exceeding one can lead to cancellation of enrollment.