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European Corporate FinanceLaajuus (3 cr)

Code: YH00BV01

Credits

3 op

Teaching language

  • English

Responsible person

  • Shabnamjit Hundal

Objective

This course examines important issues in corporate finance in Europe 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 corporates functioning in the European business environment. For example topic such as assets valuation on the one hand highlighting investing side and capital structure, cost of capital and payout policy highlighting financing side not only demonstrate their mutual interactions but also 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.

In this course 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 of students. The study of course contents in the light of diverse business environments enable students to understand diverse theoretical aspects and empirical studies through critical perspectives and contextualize the course contents in various scenario/settings. Similarly, there is explicit emphasis laid on the quantitative data analysis in this course.

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.

Qualifications

Basic knowledge of Economics or any discipline of business studies.

Assessment criteria, satisfactory (1)

You will get a grade of ‘one’ if you are able to demonstrate a basic level of evidence of the following ILOs-Analytical Business Skills (IBBUS), Critical Thinking (IBCRI), Collaborative Skills (IBCOL) and Communication Skills (IBCOM).
You will get a grade of ‘two’ if you are able to demonstrate satisfactory level of evidence of in the following ILOs-Analytical Business Skills (IBBUS), Critical Thinking (IBCRI), Collaborative Skills (IBCOL) and Communication Skills (IBCOM).

Assessment criteria, good (3)

Grade 3 and 4:
You will get a grade of ‘three’ if you are able to demonstrate good level of evidence of in the following ILOs-Analytical Business Skills (IBBUS), Critical Thinking (IBCRI), Collaborative Skills (IBCOL) and Communication Skills (IBCOM) and you are able to demonstrate clearly some evidence of Ethical, Sustainable and Responsible Conduct (IBESR) and Personal Skills (IBPER).
You will get a grade of ‘four’ if you are able to demonstrate an excellent level of evidence of in the following ILOs-Analytical Business Skills (IBBUS), Critical Thinking (IBCRI), Collaborative Skills (IBCOL) and Communication Skills (IBCOM) and you are able to demonstrate significant evidence of Ethical, Sustainable and Responsible Conduct (IBESR) and Personal Skills (IBPER).

Assessment criteria, excellent (5)

Grade 5: You will get a grade of ‘five’ if you are able to demonstrate an excellent level of evidence of in the following ILOs-Analytical Business Skills (IBBUS), Critical Thinking (IBCRI), Collaborative Skills (IBCOL), Communication Skills (IBCOM), Ethical, Sustainable and Responsible Conduct (IBESR) and Personal Skills (IBPER).

Materials

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

Enrollment

01.03.2023 - 30.04.2023

Timing

02.06.2023 - 22.06.2023

Number of ECTS credits allocated

3 op

Mode of delivery

Contact teaching

Unit

School of Business

Campus

Lutakko Campus

Teaching languages
  • English
Seats

0 - 20

Teachers
  • Shabnamjit Hundal
  • Risto Korkia-Aho
Groups
  • YBB20S1
    Master's Degree Programme in International Business Management
  • MPT20S1
    Palveluliiketoiminta
  • HTA22S1
    Tiimiakatemia (AMK)
  • HBI23VKSS
    Like's Summer School 2023 (Bachelor's)
  • HTK21S1
    Tietojenkäsittely (AMK)
  • HTG21S1
    Bachelor's Degree Programme in Business Information Technology
  • YHO21S1
    Organisaation ja talouden johtaminen (YAMK)
  • MTM21S1
    Bachelor's Degree Programme in Tourism Management
  • YMJ21S1
    Matkailu- ja palveluliiketoiminnan johtaminen (YAMK)
  • MPT21S1
    Palveluliiketoiminnan tutkinto-ohjelma (AMK)
  • HBI22VS
    Bachelor's Degree Programme in International Business, vaihto-opiskelu/Exchange studies
  • ZJA23KH
    Avoin AMK, lita
  • YBB22VS
    Master's Degree Programme in International Business, vaihto-opiskelu/Exchange studies
  • ZJK23KH
    Korkeakoulujen välinen yhteistyö, LITA
  • HTA21S1
    Tiimiakatemia (AMK)
  • HTK20S1
    Tietojenkäsittely
  • HTG20S1
    Bachelor's Degree Programme in Business Information Technology
  • YHS22S1
    Master's Degree Programme in Sport Business Management
  • MTM22S1
    Bachelor's Degree Programme in Tourism Management
  • YHO22S1
    Organisaation ja talouden johtaminen (YAMK)
  • YMJ22S1
    Matkailu- ja palveluliiketoiminnan johtaminen (YAMK)
  • HBI20S1
    Bachelor's Degree Programme in International Business
  • MPT23VK
    Palveluliiketoiminnan tutkinto-ohjelma (AMK), vaihto-opiskelu/Exchange studies
  • HTG23VK
    Bachelor's Degree Programme in Business Information Technology, vaihto-opiskelu/Exchange studies
  • HBI21S1
    Degree Programme in International Business
  • HBI22S1
    Degree Programme in International Business
  • YHS21S1
    Master's Degree Programme in Sport Business Management
  • MTM20S1
    Bachelor's Degree Programme in Tourism Management
  • YBB22S1
    Master's Degree Programme in International Business
  • HTL21SIY
    Liiketalouden tutkinto-ohjelma (AMK)
  • HTL21SB
    Liiketalouden tutkinto-ohjelma (AMK)
  • YHS23VK
    Master's Degree Programme in Sport Business Management, vaihto-opiskelu/Exchange studies
  • MTM22VS
    Bachelor's Degree Programme in Tourism Management,vaihto-opiskelu/Exchange studies
  • YBB21S1
    Master's Degree Programme in International Business
  • HTL21SC
    Liiketalouden tutkinto-ohjelma (AMK)
  • MTM23VK
    Bachelor's Degree Programme in Tourism Management,vaihto-opiskelu/Exchange studies
  • HBI23VK
    Bachelor's Degree Programme in International Business, vaihto-opiskelu/Exchange studies
  • HTL21SA
    Liiketalouden tutkinto-ohjelma (AMK)
  • YBB23VK
    Master's Degree Programme in International Business, vaihto-opiskelu/Exchange studies

Objective

This course examines important issues in corporate finance in Europe 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 corporates functioning in the European business environment. For example topic such as assets valuation on the one hand highlighting investing side and capital structure, cost of capital and payout policy highlighting financing side not only demonstrate their mutual interactions but also 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.

In this course 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 of students. The study of course contents in the light of diverse business environments enable students to understand diverse theoretical aspects and empirical studies through critical perspectives and contextualize the course contents in various scenario/settings. Similarly, there is explicit emphasis laid on the quantitative data analysis in this course.

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.

Materials

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

Assessment criteria, satisfactory (1)

You will get a grade of ‘one’ if you are able to demonstrate a basic level of evidence of the following ILOs-Analytical Business Skills (IBBUS), Critical Thinking (IBCRI), Collaborative Skills (IBCOL) and Communication Skills (IBCOM).
You will get a grade of ‘two’ if you are able to demonstrate satisfactory level of evidence of in the following ILOs-Analytical Business Skills (IBBUS), Critical Thinking (IBCRI), Collaborative Skills (IBCOL) and Communication Skills (IBCOM).

Assessment criteria, good (3)

Grade 3 and 4:
You will get a grade of ‘three’ if you are able to demonstrate good level of evidence of in the following ILOs-Analytical Business Skills (IBBUS), Critical Thinking (IBCRI), Collaborative Skills (IBCOL) and Communication Skills (IBCOM) and you are able to demonstrate clearly some evidence of Ethical, Sustainable and Responsible Conduct (IBESR) and Personal Skills (IBPER).
You will get a grade of ‘four’ if you are able to demonstrate an excellent level of evidence of in the following ILOs-Analytical Business Skills (IBBUS), Critical Thinking (IBCRI), Collaborative Skills (IBCOL) and Communication Skills (IBCOM) and you are able to demonstrate significant evidence of Ethical, Sustainable and Responsible Conduct (IBESR) and Personal Skills (IBPER).

Assessment criteria, excellent (5)

Grade 5: You will get a grade of ‘five’ if you are able to demonstrate an excellent level of evidence of in the following ILOs-Analytical Business Skills (IBBUS), Critical Thinking (IBCRI), Collaborative Skills (IBCOL), Communication Skills (IBCOM), Ethical, Sustainable and Responsible Conduct (IBESR) and Personal Skills (IBPER).

Qualifications

Basic knowledge of Economics or any discipline of business studies.