BUS-F 605 Corporate Finance

• 15 weeks
• 3 credits
• Prerequisite(s): BUS-F600

The course introduces basic theoretical models concerning selected topics in corporate finance. The class is intended to provide students with an in-depth analysis of several of the main theoretical papers that have influenced corporate finance. The goal of the class is to enable students to develop the basic technical skills needed to read and understand theory papers. In each session we will go through several articles in detail.

Sample Course Outline

1. Capital Structure
1. Static leverage choice
2. Dynamic capital structure models
2. Corporate Control
1. Q-theory of M&A
2. Asset complementarity
3. Market timing
4. Private benefit of control
3. Corporate Governance
1. Internal governance
2. External governance

Recommended Books

- Dixit, A. K., and Pindyck, R. S. Investment under Uncertainty, Princeton University Press.
- Tirole, J., The Theory of Corporate Finance, Princeton University Press.
- Hart, Oliver, Firms, Contracts, and Financial Structure, Clarendon Press, Oxford.
- Mas-Collel, Whinston, and Green, Microeconomic Theory, Oxford University Press.