Theoretical Corporate Finance
Time: 13.1.-17.3.2026
Place: Aalto University School of Business, Otaniemi, Espoo
Registrations: The deadline for registrations is January 6, 2026. See registration/application details at the bottom of the page.
Teaching: GSF Director Mikko Leppämäki (Aalto University) and Professor Martin Ruckes (Karlsruhe Institute of Technology)
Exercises: Mr Sina Ghavamabadi (Aalto University)
Lectures: 36 h of lectures (36 x 45 minutes)
| DAY | DATE | TIME | PLACE (Otaniemi Campus Map) |
| Tuesday ML | 13.1.2026 | 12:15 – 14 | U262 KPMG, Otakaari 1 |
| Wednesday ML | 14.1.2026 | 10:00 – 12 | U262 KPMG, Otakaari 1 |
| Tuesday ML | 20.1.2026 | 12:15 – 14 | U262 KPMG, Otakaari 1 |
| Wednesday ML | 21.1.2026 | 10:00 – 12 | U262 KPMG, Otakaari 1 |
| Tuesday ML | 27.1.2026 | 12:15 – 14 | U262 KPMG, Otakaari 1 |
| Wednesday ML | 28.1.2026 | 10:00 – 12 | U262 KPMG, Otakaari 1 |
| Tuesday ML | 3.2.2026 | 12:15 – 14 | U262 KPMG, Otakaari 1 |
| Wednesday ML | 4.2.2026 | 10:00 – 12 | U262 KPMG, Otakaari 1 |
| Tuesday ML | 10.2.2026 | 12:15 – 14 | U262 KPMG, Otakaari 1 |
| Wednesday ML | 11.2.2026 | 10:00 – 12 | U121a, Otakaari 1 |
| Monday MR | 9.3.2026 | 14:15 – 18 | U006, Ekonominaukio 1 |
| Tuesday MR | 10.3.2026 | 12:15 – 15 & 16:15 – 18 | U259, Otakaari 1 |
| Wednesday MR | 11.3.2026 | 9:15 – 11 & 12:15 – 14 | T004, Ekonominaukio 1 (Part 1) & U261 OP, Otakaari 1 (Part 2) |
| Thursday MR | 12.3.2026 | 9:00 – 12 | U259, Otakaari 1 |
Exercises: 16 h of exercises (16 x 45 minutes)
| DAY | DATE | TIME | PLACE (Otaniemi Campus Map) |
| Wednesday | 14.1.2026 | 12:15 – 14 | U259, Otakaari 1 |
| Wednesday | 21.1.2026 | 12:15 – 14 | U259, Otakaari 1 |
| Wednesday | 28.1.2026 | 12:15 – 14 | U259, Otakaari 1 |
| Wednesday | 4.2.2026 | 12:15 – 14 | U259, Otakaari 1 |
| Wednesday | 11.2.2026 | 12:15 – 14 | U259, Otakaari 1 |
| Wednesday | 18.2.2026 | 12:15 – 14 | U259, Otakaari 1 |
| Wednesday | 17.3.2026 | 12:15 – 16 | U259, Otakaari 1 |
Intended Learning Outcomes: After completing the course, students should be able to:
- identify how the careful design of financial contracts can minimize the agency problems associated with external financing,
- set up and solve basic game theoretic and contracting models in corporate finance to analyze and characterize external financing scenarios, and
- in general, be more comfortable and better prepared to follow the literature and critically read corporate finance theory papers published in the leading finance and economic journals.
Prerequisites: Students are expected to have basic knowledge of master level corporate finance, as well as familiarity with static optimization, utility functions, expected utility theory and basic microeconomics. This course is designed for Finance PhD students who may not be familiar with game and contract-theoretic techniques before the course. To help prepare for the course students will receive some notes on the basics of noncooperative game theory and contracting.
Course Content: The course offers a doctoral level introduction to Theoretical Corporate Finance. The early part of the course focuses mainly on corporate financing and agency costs. We will examine corporate financing under moral hazard and asymmetric information as well as signalling in corporate finance and how the short- and long-term debt (debt maturity) can be used to control entrenched managers. The latter part of the course focuses in depth on selected topics including, but not limited to, theories of debt/debt markets, equity markets: initial public offerings, market for corporate control, and internal capital markets and investment. More detailed description of the course will be provided later in the syllabus/readings.
Course Description: TBA
Reading List: TBA
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: TBA
Exercises: TBA
The password for opening the files will be sent to course participants.
will be sent to course participants.
Credit units: 6 ECTS cr.
Participants: Doctoral students in finance. The course is also open for KATAJA as well as FDPE and Helsinki GSE students with sufficient background in finance and/or economics. The course is also open for foreign doctoral students given that there is space in the course.
Participant list: TBA
Examinations
Grading: The course comprises two compulsory parts (a written closed book exam and execises). The total points of the course are 100. To pass the course, one needs at least 50 points. In addition, one must get at least 50% of the points from each compulsory parts: a written closed book exam (max 80 points) and exercises (max 20 points).
Examination dates and times:
Exam: Wednesday, April 1, at 10:00-14:00 in U261 OP, Otakaari 1, Espoo. Please register for the exam through this link. The registration link will be closed one week prior to the exam.
Retake examination date: TBA. Please register for the retake exam by sending a message to gsf@aalto.fi at least one week prior to the exam date.
If you wish to take the exam in your home university (other than GSF member university), please see instructions below.
Exam locations:
Espoo: Aalto University School of Business
Jyväskylä: University of Jyväskylä
Lappeenranta: Lappeenranta University of Technology
Oulu: University of Oulu
Turku: University of Turku
Vaasa: University of Vaasa
Other locations: Doctoral students in other universities are requested to inform GSF by sending an e-mail to gsf@aalto.fi if they wish to take the exam in their home universities. The exam can be taken abroad where suitable exam supervision can be arranged. Please note that the exam must be written in presence of an exam supervisor. Thus, please submit the name of the exam supervisor at least 14 days before the examination. Possible payment and arrangements for supervision should be made by the student.
Registration/Application
- Doctoral students of GSF, FDPE and Helsinki GSE: Please register through this link.
- Doctoral students in related fields and doctoral students at foreign universities: Application form can be found below (both in PDF and Word format). 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.