The course covers a range of topics in corporate finance starting with capital budgeting, CAPM and other valuation instruments. The course then proceeds identifying the driving forces behind capital structure decisions and choices over debt and equity finance. In this context we will also discuss financing frictions that differentiate the functioning of perfect capital markets from imperfect capital markets. A second part of the course covers some specific topics in corporate finance: the decision to go public, mergers and acquisitions, corporate governance issues and the role of sustainability for investment and financing decisions.

Topics:

First module – Lecturer: Santiago Garcia

1.     Overview of financial instruments and capital budgeting

2.     Portfolio theory and CAPM

3.     Capital structure

4.     Valuation and payout policy

Second module – Lecturers: Claudia Guagliano (CG) and Valerio Novembre (VN)

5.     Perfect and imperfect capital markets (CG)

6.     Market frictions and behavioural finance (CG)

7.     IPO decision / M&A/LBO (VN)

8.     An overview of capital markets listing (VN)

9.     Agency problems and corporate governance (VN)

10.  Sustainability in investment and financing decisions (CG)

11.  Digital assets and the role of FinTech in corporate financing decisions (CG)

12.  The development of the European Capital Markets Union (VN)