85072 - International Corporate Finance

Learning outcomes

At the completion of the course, students will have a basic knowledge of concepts and analytical techniques in corporate finance, and they will be able to apply them to nowadays international market transactions. This includes the ability to understand the governance of multinational corporations, and their investing, financing, and risk management decisions in a perspective of maximizing the value to their shareholders.

Course contents

International Corporate Finance will provide students with an introduction to financial decision-making, and the framework in which these decisions are made, specializing to the investment decisions of firms in a perspective of maximizing the value to shareholders.

The first module (Introduction to Finance) will cover the international financial system and its main actors, along with basic finance concepts such as the time value of money and asset valuation. The main financial markets—i.e., money, bond and stock market—will be discussed within the international financial system.

The second module (International Financial Management) will specialize to some of the theory and practice of decision-making within the firm. In particular, the module will study how firms evaluate international business opportunities, and to which extent international risks can be managed, with the aim of maximizing the value to shareholders.

Readings/Bibliography

The main textbook for the course is:

Peterson Drake, P. and F. J. Fabozzi, The Basics of Finance: An Introduction to Financial Markets, Business Finance, and Portfolio Management, John Wiley & Sons, 2010.

The following book is a good alternative:

Pilbeam, K., Finance and Financial Markets, 4/e, Palgrave Macmillan, 2018.

Additional readings may be assigned by the instructor as the course progresses.

Teaching methods

Traditional lectures and classes.

Assessment methods

Course attendance is mandatory. 70 percent of the lectures is the minimum attendance rate to be granted access to the 90 minutes final class test, which will take place after the class ending, within the official exam sessions. It will include 10 multiple-choice questions (10 points), 1 open-end question (5 points) and 5 short problems (15 points, i.e. 3 points each). Moreover, students will be asked to critically discuss a case study in finance (teamwork, 3-4 students per team, depending on the size of the class) in the last scheduled meeting. In preparation of this class discussion, each team will be asked to deliver a report to the lecturer (a PDF file, via email), following the guidelines provided. This activity will provide the participants with a maximum of 3 points (to be added to the final written exam mark). Please note that these additional extra-points will be only valid within the current academic year.

Teaching tools

Lecture slides and additional readings which may be assigned by the instructor as the course progresses.

Office hours

See the website of Massimiliano Barbi