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Instructors: Prof. Dr. Mark Mietzner
Event type:
Seminar / exercise
Org-unit: Corporate Management & Economics
Displayed in timetable as:
Adv. Corp. Finance
Hours per week:
3
Credits:
6,0
Location:
Campus der Zeppelin Universität
Language of instruction:
Englisch
Min. | Max. participants:
5 | 35
Priority scheme: Standard-Priorisierung
Course content:
The course discusses major ways companies employ to finance their operations via capital markets. Because equity financing is the major focus of the first part of this course, students learn about the mechanism and reasoning behind Initial Public Offerings (IPO). In particular, the course examines conceptual and application perspectives related to underpricing of IPOs, the valuation of IPO candidates, and different allocation procedures of shares. Theoretical discussions are followed by empirical findings to each topic. Then, the rational of seasoned equity offerings (SEO) is analyzed. Topics include the legal framework in different countries, cycles, and short- as well as long-term performance of SEO firms. The motives of corporate cross-listing decisions is examined as well. Given the restricted time frame of the semester, we eventually will discuss debt financing via bonds as well. In this case, students are introduced to bond markets, while the emphasis is on bond pricing as well as reasons, characteristics and types of corporate bonds.
In the second part of this course, the lecture provides a broad overview of mergers and acquisitions. Consequently, we will focus on company analysis and company valuation. Different valuation techniques will be introduced and we will talk about the advantages and disadvantages of each method. Studends are also introduced to central financial methods of performance measurement. Starting with a discussion of central theoretical concepts on the measurement of market performance (e.g, implementation of event studies, buy-and-hold-returns, Jensen’s Alpha, etc.), students will be expected to work with data sets (provided by the instructor) and implement several concepts in Excel.
Finally, this lecture also gives a broad overview of other central topics in modern corporate finance based on information asymmetries (such as financial distress situations or investment decisions), while the specific topics will be defined by the lecturer throughout of the course. In any case, students will be introduced to theoretical concepts and empirical research on selected topics of corporate finance.
Educational objective:
The course will introduce students to theoretical concepts and empirical findings on central topics of corporate finance. Students will be expected to work with related data sets (provided by the instructor) on selected topics. By the end of the course, students will have a broad overview of path-breaking papers and applied methods in this area. The lectures will be taught in German and students have to read paper and/or book chapters for each lecture. Paper, textbooks and slides are typically written in english language.
Further information about the exams:
The level of the course is addressed to students with a good understanding of fundamental concepts in corporate finance. The final written test will be in English and German.
Mandatory literature:
Basic textbooks:
Tirole, J., (2006): ”The Theory of Corporate Finance”, Princeton University Press.
Berk/DeMarzo (2011) “Corporate Finance“, Pearson Prentice Hall.
Brealey, R. A., S. C. Myers and F. Allen, (2011): ”Principles of Corporate Finance”, McGraw Hill.
Greenbaum, S. and A. Thakor (2007): Contemporary Financial Intermediation, Academic Press, 2nd ed., 2007
A list of papers will be provided in class.
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