82160 - Corporate Governance and Corporate Finance

Learning outcomes

The aim of this course is to provide the students with a set of analytical tools and techniques necessary to explore the most important investment and financing decisions taken by firms at different stages of their life cycle and to understand international corporate governance systems. At the end of the course the student will be able to: - select the best business investment strategies a firm should undertake; - identify the main financing sources available to companies; - understand how to structure an effective corporate governance system and analyse how the corporate governance system can affect corporate performances.

Course contents

Module I

- The role of corporate finance in corporations

- Maximization of shareholder value as a company goal

- Financial analysis

- Principles of mathematical finance

- Evaluation of bonds and shares

- Investment assessment methods

- Risk – return relationship

- The Capital Asset Pricing Model

Module II

- Estimation of the opportunity cost of capital

- Financing decisions

- Risk capital financing: Venture capital and IPOs

- Seasoned equity offerings

- Dividend policy

- The adjusted present value

Readings/Bibliography

Lecture notes: Lecture notes and supplementary materials will be made available on the course platform, "virtuale.unibo.it".

Textbook: Brealey, R., Myers, S., Allen, F., & Sandri, S. (2024). Principi di Finanza Aziendale. McGraw Hill Libri Italia.
Required chapters: 1–3, 5–7, and 9–18. Since course attendance is not mandatory, the examination requirements are the same for both attending and non-attending students.

Module I (First Midterm Exam): Chapters 1–3, 5–7, and 9-10.

Module II (Second Midterm Exam): Chapters 11–18.

Recommended practice book: Bajo, E., Barbi, M., & Sandri, S. (2024). Esercizi di Finanza Aziendale. Apogeo.

Teaching methods

The course content will be presented and discussed in depth during lectures. Both theoretical and practical sessions will be offered. The practical sessions (four for each module) will focus on solving exercises and applying the concepts covered in class.

Assessment methods

Assessment is based on a written exam.

The midterm exams (the first is usually held at the end of October or the beginning of November, and the second in December) each consist of 11 multiple-choice questions (22 points) and 1 exercise (10 points). Each midterm exam lasts 50 minutes.

Students may take the second midterm exam only if they obtain a minimum score of 14 points on the first midterm exam.

The final exam consists of 22 multiple-choice questions (worth 44 points in total) and 2 exercises (worth 10 points each). Each module includes 11 multiple-choice questions and 1 exercise. The exam lasts 100 minutes. The final score is calculated by dividing the total number of points obtained by 2. 

For both the partial and the final examinations, each correct answer to a multiple-choice question is worth 2 points. There is no penalty for incorrect answers, and only one answer is correct for each question. Each exercise is worth up to 10 points.

The grading scale is as follows:

- 18–23: sufficient knowledge and analytical skills covering a limited range of topics addressed in the course.

- 24–27: adequate knowledge and analytical skills, although with some limitations; good operational skills, albeit not particularly well developed.

- 28–30: very good knowledge of most topics covered in the course; strong operational and critical thinking skills.

- 30 cum laude: excellent and comprehensive knowledge of the topics covered in the course; outstanding critical analysis and ability to make connections across topics.

Students are not allowed to use books, notes, or other course materials during the examination. A list of the most important formulas will be provided as part of the examination paper.

The course will be taught during the first semester. Two calls will be set during the winter period (January-February) and a third and a fourth call will be set in June and September respectively. The second partial exam and the first total take place on the same day.

The use of artificial intelligence (AI) is strictly prohibited during assessments. Any use of AI will be considered a violation of academic integrity.

Teaching tools

Teaching materials and tools include lecture slides, a projector, and the blackboard.

Office hours

See the website of Barbara Petracci

See the website of Massimo Spisni