RECOMMENDED TEXTBOOK(S)

Main Textbook:Ross, S., R. Westerfield and J. Jaffe (2010) Corporate Finance.9th Edition. McGraw Hill.All material used in this unit's classes are available in electronic form through CITY's E-Leaning ManagementSystem (Claroline) with enrollment password

LIST OF REFERENCES / ADDITIONAL RECOMMENDED READINGAdditional Textbooks:Brealey A. R., C.S. Myers and, F. Allen (2011) Principles of Corporate Finance. 10th edition. McGraw-Hill.Copeland, T.E. and J.F. Weston (1988) Financial theory and corporate strategy. London, Addison- Wesley.Damodaran, A. (2001) Corporate finance: Theory and Practice, New York, John Wiley and Sons.Dimson, E. and P. March (1997) Cases in corporate finance. New York, John Wiley and Sons.Gitman J. Lawrence (2005) Principles of Managerial Finance. 11th edition. London, Addison Wesley.Lumby S. and C. Jones (2003) Corporate Finance Theory and Practice. 7th edition. Stamford, ThomsonLearning.Penman, S.H. (2007) Financial Statement Analysis and Security Valuation. Third Edition, McGraw-Hill.plus additional references and notes as seen at each WEEKOUTLINEWEEK #1 Introduction to managerial finance, its role and environment and basic quantitativeaspectsAn introduction to the basic concepts of managerial finance identifying the managers keyobjectives, discussing the fundamentals of the agency issue, the role of ethics and theimportance of corporate governance. Also, basic quantitative aspects required in themodern corporate financial environment will be discussed.Recommended ReadingMain textbook: chapters 1-4, 15, 30.Relevant chapters from additional recommended reading.Further ReadingAltman, E. (2000) Predicting Financial Distress of Companies: Revisiting the Z-score andZETA models, Stern School of Business School, Working Paper, July.Brounen, D., A. DeJong, and K. Koedijk. (2004) Corporate Finance in Europe: Confrontingtheory with practice. Financial Management, 33 (4), p. 71-101.Demirg-Kunt, A. and V. Maksimovic (1998). Law, finance and firm growth. Journal ofFinance, 53, 6, p. 2107-37.Graham, G.R., and Harvey, C.R. (2001) The theory and practice of corporate finance:Evidence from the field. Journal of Financial Economics, 60, 187-243.Shleifer, A., and R.W. Vishny, (1997) A survey on corporate governance. Journal ofFinance, 52 (2), p. 737-783.WEEK #2 Capital budgeting and investment decisionsSyllabus: Code EMBA204Unit Title : Corporate Financial Management 3Introducing the capital budgeting techniques, discussing their pros and cons in makinginvestment decisions, and analyzing the preference for the use of Net Present Value rule.Recommended ReadingMain textbook: chapters 5, 6, 31.Relevant chapters from additional recommended reading.Further ReadingRoss, A.S. (1995) Uses, abuses and alternatives to the Net-Present-Value rule. FinancialManagement, 24 (3), p. 96-102.Ryan, P.A., and P.G. Ryan. (2002) Capital budgeting practices of the Fortune 1000: Howhave things change?. Journal of Business & Management, 8 (4), p. 355-364.WEEK #3 Valuation principles of bonds and stocksReviewing the theories and techniques behind bonds and common stock valuation.Recommended ReadingMain textbook: chapters 8, 9.Relevant chapters from additional recommended reading.Further ReadingFrankel, R. and C. M.C. Lee. (1998) Accounting valuation, market expectation, and crosssectionalstock returns. Journal of Accounting and Economics, 25, 283-319.Gebhardt, R.W., C.M.C. Lee and B. Swaminathan. (2001) Towards and implied cost ofcapital. Journal of Accounting Research, 39 (1), p. 135-76.Leibowitz,, M.L., and S. Kogelman. (1990) Inside the P/E ratio: the Franchise Factor.Financial Analysts Journal, 46 (6), p. 17-35.WEEK #4 Fundamentals of corporate debt, capital structure and dividend policyAnalysing the effect of leverage on a firms value and the determinants of capital structure.Reviewing the theories related to firms dividend policy decisions.Recommended ReadingMain textbook: chapters 16, 17, 19.Relevant chapters from additional recommended reading.Further ReadingBaker, H.K., Farrelly, G.E., Edelman, R.B. (1985) A survey of management views ondividend policy. Financial Management, 14 (3), p. 78-84.Benartzi, S., Michaely, R. and R. Thaler. (1997) Do changes in dividends signal the futureor the past?. Journal of Finance, 52 (3), p. 1007-1034.Harris, M. and A. Raviv. (1991) The theory of capital structure. Journal of Finance, 46 (1),p. 297-355.Rajan R. G. and L. Zingales. (1995) What do we know about Capital Structure: SomeEvidence from International Data. Journal of Finance, 50 (5), p. 1421-1460.WEEK #5 Case studies on capital structureSyllabus: Code EMBA204Unit Title : Corporate Financial Management 4Discussing cases on the determination of optimal capital structure in a real world setting.Recommended ReadingCase: Evaluating Tampas capital structure.Case: The Pizza case.Main textbook: chapters 13, 16, 17.Relevant chapters from additional recommended reading.WEEK #6 Corporate finance and fundamentals of risk managementDiscusses the fundamentals of managing and hedging risk in the modern corporateenvironment.Recommended ReadingMain textbook: chapters 22-25, 31.Case: Dodge goes internationally.Case: The Baker case.Relevant chapters from additional recommended reading.Further ReadingFinnerty, D.J. (1988) Financial Engineering in Corporate Finance: An overview. FinancialManagement, 17 (4), p.14-33.Smithson, C., and Simkins, B.J. (2005) Does risk management add value? A survey of theevidence. Journal of Applied Corporate Finance, 17 (3), p. 8-17.WEEK #7 Efficient markets, behavioral finance and security issuanceIntroducing students to the efficient markets issues, linking it to behavioral finance. Also, adiscussion on how companies issue securities will be offered.Recommended ReadingMain textbook: chapters 14, 20.Relevant chapters from additional recommended reading.Further ReadingDeBondt, W. and R. Thaler.(1985) Does the Stock Market Overreact?, Journal of Finance40, p. 793805.Espenlaub, S., Goergen, M. and A. Khurshed (2001) IPO Lock-in Agreements in the UK,Journal of Business Finance and Accounting, 28 (9&10), p. 12351278.Hirshleifer, D. (2001) Investor Psychology and Asset Pricing, Journal of Finance 56 (4),p.1533-1597.WEEK #8 Reflection and ConsolidationTopic of discussion: What we know and what we dont know about finance.WEEK #9 Mergers-Acquisitions (M&A) and Corporate restructuringSyllabus: Code EMBA204Unit Title : Corporate Financial Management 5Understanding merger fundamentals and terminology, analysing the types of mergers andthe motivation behind them. Also, issues on corporate restructuring will be discussed.Recommended ReadingMain textbook: chapter 29.Relevant chapters from additional recommended reading.Further ReadingAgrawal, A. and Jaffe, J.F. (2003) Do takeover targets underperfom? Evidence fromoperating and stock returns. Journal of Financial and Quantitative Analysis, 38 (4),p. 721-746.Smith, J.S. (2005) How to make a decision about mergers and acquisitions. Journal ofBusiness Forecasting, 24 (2), p. 11-16.WEEK #10 Case studies on M&ADiscussing cases on the mechanics behind the valuation of a target and the structuring of adeal.Recommended ReadingCase: The Birdie golf-Hybrid golf merger.Case: The Timken case.Main textbook: chapters 4, 5, 9, 29.WEEK #11 Capital budgeting decisions under uncertaintyIntroducing the concept of risk in capital budgeting decisions and discussing its practicalproblems.Recommended ReadingMain textbook: chapters 7, 11, 13.Relevant chapters from additional recommended reading.Further ReadingBailes, J.C., and Nielsen, J.F. (2001) Using decision trees to manage capital budgetingrisk. Management Accounting Quarterly, 2 (2), p. 14-17.Chadell-Hatfield, P., Goitein, B., Horvath, and Webster, A. (1996) Financial criteria, capitalbudgeting techniques and risk analysis of manufacturing firms. Journal of AppliedBusiness Research, 13 (1), p. 95-104.Jaganathan, R., and I. Meier. (2002) Do we need CAPM for capital budgeting?. FinancialManagement, 31 (4), p. 55-77.Vintil, N. (2007) Real Options in Capital Budgeting. Pricing the Option to Delay and theOption to Abandon a Project. Theoretical and Applied Economics, 7(7), p. 47-58.WEEK #12 Case studies on capital budgeting and valuation and unit overviewThe case studies aim to provide the tools used by corporate managers to implementbusiness forecasting and decision making in a real world setting.Case: Mars mining company.Case: Aurora textile.