Theoretical corporate Finance

The course will be organized as an online course

 

PART I: Agency Problems and Capital Structure

Time: 12.1. - 10.2.2021

Place: Online

Teaching: GSF Director Mikko Leppämäki (Aalto University)

Exercises: Mr. Matteo Vacca (Aalto University)


Lectures:
24 h of lectures (24 x 45 minutes)                                                                                                                                                                                                                                                                           

DAY
DATE
TIME
PLACE
Tuesday 12.1. 10:00 - 12 Online
Wednesday 13.1. 10:00 - 12 Online
Thursday 14.1 10:00 - 12 Online
Tuesday 19.1. 10:00 - 12 Online
Wednesday 20.1. 10:00 - 12 Online
Thursday 21.1. 10:00 - 12 Online
Tuesday 26.1. 10:00 - 12 Online
Wednesday 27.1. 10:00 - 12 Online
Thursday 28.1. 10:00 - 12 Online
Tuesday 2.2. 10:00 - 12 Online
Wednesday 3.2. 10:00 - 12 Online
Thursday 4.2. 10:00 - 12 Online


Exercises:
12 h of exercises

DAY
DATE
TIME
PLACE
Wednesday 20.1. 13.15 - 16 Online
Wednesday 27.1. 13.15 - 16 Online
Wednesday 3.2. 13.15 - 16 Online
Wednesday 10.2. 13.15 - 16 Online
Objectives: Part I of the course offers a doctoral level introduction to the theoretical corporate finance research with the help of game theory and contracting. In part I, we examine agency problems and capital structure: the focus will be on financial contracting under moral hazard, financial contracting under asymmetric information and signaling in finance. In particular, we examine how agency problems affect the way how corporations optimally finance their activities by taking into consideration the strategic behavior of other market participants.

Note: This part of the course is particularly designed for doctoral students in finance who are not familiar with game and contract-theoretic techniques.

Course Description: PDF

Reading List:
PDF

Access to the articles is subject to your home institutions' subsciptions to the databases. Hard copies of all readings are available for consultation at GSF office, Aalto University School of Business, room T317.

Lecture Notes: Day 1

Day 2

Day 3

Day 4

Day 5

Day 6

Day 7

Day 8

Day 9

Day 10 & 11

Day 12


Exercises: Set 1

Set 2

Set 3

Set 4

The password for opening the files will be e-mailed to course participants.

 

 

PART II: Topics in Theoretical Corporate Finance

Time: 15.3. - 31.3.2020

Place: Online

Teaching: Professor Martin Ruckes (Karlsruhe Institute of Technology)

Exercises: Mr Matteo Vacca (Aalto University) 

 

Lectures: 16 h of lectures (16 x 45 min)

DAY
DATE
TIME
PLACE
Monday
15.3. 14:00 - 16 Online
Wednesday 17.3. 10:00 - 14 Online
Friday 19.3. 10:00 - 13 Online
Wednesday 24.3. 10:00 - 14 Online
Friday 26.3. 10:00 - 13 Online

Exercises: 4 h of exercises

DAY
DATE
TIME
PLACE
Wednesday
31.3.
10:00 - 14 Online

 

Objectives: Rather than providing an exhaustive overview of the field, this part of the course focuses in depth on selected topics. Tentatively, the course intends to cover the following topics; theories of debt/debt markets, the market for corporate control, and internal capital markets. More detailed description of part II will be provided later on.

Reading List: PDF

Access to the articles is subject to your home institutions' subsciptions to the databases. Hard copies of all readings are available for consultation at GSF office,
Aalto University School of Business, room T317.

Lecture notes: Lecture notes 1

Lecture notes 2

Lecture notes 3

Lecture notes 4

Exercises: Set 5


The password for opening the files will be e-mailed to course participants.

Credit units: 6 ECTS cr.

List of Participants: PDF

Participants: Doctoral students in finance. The course is also open for KATAJA as well as FDPE students with sufficient background in finance and/or economics. The course is also open for doctoral students from foreign universities given that there is space in the course.

 

EXAMINATIONS

The whole course comprises two parts (examinations of part I and II and exercises). There will also be a retake exam covering both parts of the course. The total points of the course are 100, and in order to pass the course one needs at least 40% of the points (i.e., 40 points). In addition, one has to get at least 40% of the points from both written exams or from the retake exam. That is, a minimum requirement is 28 points from the exam. The exercises are a compulsory part of the course and the percentage requirement applies to the exercises as well. That is, a minimum requirement is 12 points from the exercises. The grading of the course will be based on

  • A written examination (70% weight)
  • Exercises (30% weight)

 


Examination date and time:

Part I: Wednesday, February 17 at 10:00-14:00. Please register for the Part I exam through this link.

Part II: Wednesday, April 14 at 10:00-13:00.


Retake examination date (Part I and II together):
TBA. Please register for the retake exam by sending a message to gsf(@)aalto.fi.

 

REGISTRATION / APPLICATION

  • Doctoral students of GSF and FDPE (finance & economics): Please register through this link.
  • Doctoral students in related fields and doctoral students at foreign universities: Application form can be found here: PDF file or Word file. Please, send in addition to your complete contact information, a report on the status of your doctoral studies, and a brief CV. Please ask also your thesis advisor to send us a short letter of recommendation by-email. All the required documents should be sent by e-mail to gsf@aalto.fi. All applicants will be informed of their acceptance soon after the deadline.

The deadline for registering in this course is January 6, 2021.