82160 - Corporate Governance and Corporate Finance

Course Unit Page

Academic Year 2019/2020

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 objective

- Financial analysis and financial planning

- Principles of mathematical finance

- Evaluation of bonds and shares

- Investment assessment methods

- Risk – return relationship

Module II

- Estimation of the opportunity cost of capital through the Capital Asset Pricing Model

- Financing decisions

- Risk capital financing: venture capital and IPO

- Seasoned equity offerings

- Dividend policy

Readings/Bibliography

- Module I: Lecture slides and notes. Slides will be available on the platform “Insegnamenti on line”.

- Module II: Notes. The notes will be available at: notes

R. Brealey, S. Myers, F. Allen, S. Sandri, Principi di Finanza Aziendale , McGraw Hill Libri Italia, 2015. Chapters 1-3, 5-10, 12-19. As attending the course is not mandatory, there is no difference between attending students and not attending students.

Module I (Program for the first partial exam): Chapters 1-3 e 5-8.

Module II (Program for the second partial exam): Chapters 9-10 e 12-19.

- Some suggestions

E. Bajo, M. Barbi, S. Sandri, Esercizi di Finanza Aziendale, Apogeo, 2017.

Teaching methods

The program will be presented in depth in class. Theoretical and practical lessons will be provided. Practical lessons (4 for each module) will be based on the resolution of exercises and on the presentation of corporate case studies.

Assessment methods

Valuation is based on a written exam.

The partial exam (the first one usually set at the end of October/beginning of November, the second one in January) is based on 11 Multiple Choices and 1 exercise, similar to those solved in class. The partial exam lasts 40 minutes.

It is possible to access to the second partial exam, set in January, with a minimum score of 14.

The total exam is composed of 22 Multiple Choices and 2 exercises that is 11 Multiple Choices and 1 exercise for each module. The total exam lasts 80 minutes. The weight of the vote obtained in each module is 50%.

With regard to both the partial exam and the total exam, the correct answer to a Multiple Choice gives 2 points. There is no penalty for the wrong answer and there is only one correct answer. The exercise has a value up to 10 points.

Students are not allowed to use notes or books.

A list of the most important formulas is provided within the exam text.

The final mark is expressed in thirties.

The course will be taught during the first semester. Two calls will be set during the winter period (January-February) and the last call will be set in September. The second partial exam and the first total take place on the same day. A call will be set in the second half of July on request of at least one student.

Teaching tools

The teaching tools are the projector and the blackboard.

Office hours

See the website of Barbara Petracci

See the website of Pierpaolo Pattitoni