Advanced Corporate Finance

• David Hillier, Mark Grinblatt and Sheridan Titman: Financial Markets and Corporate Strategy, European Edition, Irwin/McGraw-Hill, latest edition.
  

• Knut Sydsaeter and Peter Hammond, Essential Mathematics for Economic Analysis, Pearson Education, latest edition.
• Malcow-Møller, N. og Allan Würtz "Indblik i Statistik", latest edition.

• Capital structure, for example with a view on 
  1. agency problems, e.g. related to investments with option features (strategic and real options) 
  2. tax rules and bankruptcy costs 
  3. bankruptcy law, seniority and maturity

• Corporate strategy, liquidity, and risk management 

• Asymmetric information problems (moral hazard and adverse selection) with applications in corporate finance. Applications could, for example, be IPOs or takeovers (corporate control).   

Demonstrate knowledge about the course’s focus areas enabling the student to:

• Explain and reflect upon capital structure models in discrete-time
• Describe, identify, and elaborate on principal-agent type models in a corporate finance context
• Describe and identify theories and models on moral hazard problems or adverse selection problems
• Identify agency problems regarding the capital structure including problems of over- and underinvestment
• Explain corporate risk management theories and models
• Can reflect upon underlying assumptions regarding all topics 

Demonstrate skills, such that the student is able to:

• Analyze and discuss capital structure models in discrete-time
• Discuss and analyze principal-agent type models
• Analyze and relate theories and models on moral hazard problems or adverse selection problems, and apply such models to, e.g., IPOs and corporate control (takeovers)
• Analyze and discuss agency problems regarding the capital structure including problems of over- and underinvestment
• Compare and relate corporate risk management theories and models
• Criticize and compare underlying assumptions regarding all topics 

Demonstrate competences, such that the student is able to

• Independently apply models and theories related to capital structure issues with a focus on agency problems
• Identify a need for further development of the models and theories related to capital structure issues with a focus on agency problems
• Apply principal-agent type models in new, but related, topics
• Independently apply theories and models on moral hazard problems or adverse selection problems, e.g., IPOs and corporate control (takeovers) and use this to develop models in new, but related, topics
• Independently apply corporate risk management theories and models and use this to develop models in new, but related, topics
• Use the above knowledge and skills to participate in team work so that the student obtains competences in collaboration and communication.

• Selected chapters from Hillier, D., Grinblatt, M., and S. Titman:"Financial Markets and Corporate Strategy", McGraw-Hill, newest edition, or similar material. 
• Selected chapters from J. Tirole:"The Theory of Corporate Finance", Princeton University Press (newest edition).
• Articles and lecture notes. An example could be: Myers, S. C. (1977). Determinants of corporate borrowing. Journal of Financial Economics, 5, 147-175.

Scheduled classes:

4 hours of lectures (2x2) weekly for 11.5 non-consecutive weeks. 

The lecturing period can be extended due to intervening project or assignment work.

In addition, there is project work in intervening periods of the semester.

NOTE - This course is identical with the former course : 9345301 Advanced Corporate Finance.