OVERVIEW

The course introduces the main concepts related to strategic decisions in investments and methods of covering the related financial needs of companies operating in the logistics and transport sector. The course provides management knowledge useful for strategic decisions relating to investments and financing in these sectors which are highly capital intensive.

AIMS AND CONTENT

LEARNING OUTCOMES

The course, paving on a managerial approach, aims to analyse the role of the finance function in the transport enterprises domain. The course focuses on main theoretical concepts and perspectives related to investment and financial decisions, financial planning and risk management. Moreover, the course examines in-depth the most salient managerial tools for managing and supervising financial activities in shipping firms, in the port domain, in the air and rail transport sectors as well as in the cruise industry.

AIMS AND LEARNING OUTCOMES

Attendance and active participation in the proposed educational activities, along with individual study, will enable the student to:

1. Identify the specific characteristics of the various businesses in logistics, shipping, and transportation that make the connection between strategic decisions and financial decisions crucial;
2. Evaluate the ability of strategic decisions to create value for the company;
3. Understand the value drivers in the companies of the examined sectors;
4. Make choices related to investments and funding sources that are appropriate for the company's corporate and business strategies;
5. Effectively and efficiently employ various managerial tools to support the strategic decision-making process in different sectors of logistics, shipping, and transportation.

TEACHING METHODS

Lectures, case studies and seminars.

Students who have valid certification of physical or learning disabilities  and who wish to discuss possible accommodations or other circumstances regarding lectures, coursework and exams, should speak both with the instructor and with Professor Serena Scotto (scotto@economia.unige.it), the Department’s disability liaison.

SYLLABUS/CONTENT

The programme of the course includes the following issues:

PART I – GENERAL

• The evolution of the “Finance” Department: responsibilities and tasks
• Finance as a tool for supporting strategic decisions in firms: investments; evaluation process, financial criteria for evaluating business decisions (Net Present Value – NPV; Internal Rate of Return – IRR; pay back period – PBP).
• Decisions related to finance and funding: capital structure, financial leverage, financial needs, investment analysis, etc.
• Programming and controlling financial cash flows: the role of financial and managerial tools.
• Risk management: risk categories, main source of risks for firms, financial derivatives for hedging (forward contracts; futures; options; swap contracts).

PARTE II – EMPIRICAL APPLICATIONS

• Investment decisions and cash flow analysis in the shipping sector
• Shipping finance
• Financial and investment decisions for logistics and transport infrastructures (ports, airports, rail stations, logistics centres, highways, etc.), with particular emphasis on: the strategic, managerial and governance settings related to public-private partnerships; alternative source for funding and subsidies.
• Financial management for airline companies.
• Airline companies and risk management: exposure towards exchange rate risks and fuel price shifts.
• Financial dimensions related to the management of railways (infrastructures and services).

The topics addressed in the course are oriented towards identifying development models consistent with sustainable development policies as defined by the UN 2030 Agenda. In particular, the contents of the course "Gestione degli Investimenti e dei Finanziamenti delle Aziende di Trasporto" aim to achieve the following Sustainable Development Goals (SDGs):

• Goal 4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.
• Goal 9. Build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation.
• Goal12. Ensure sustainable consumption and production patterns.
• Goal 13. Take urgent action to combat climate change and its impacts by regulating emissions and promoting developments in renewable energy.

RECOMMENDED READING/BIBLIOGRAPHY

For the First Part of the course the recommended textbook is:

• Brealey R.A., Myers S.C., Allen F., 2013, Principles of Corporate Finance, Eleventh Global Edition, McGraw-Hill Education, London (UK). (Please, contact the instructor for the list of the selected Chapters).

For the Second Part of the course the recommended textbook are:

• Stopford M., 2009, Maritime Economics, Third Edition, Routledge, New York. (Chapters 6 and 7)
• Morrell P.S., 2001, Airline Finance, Second Edition, Ashgate Publishing, Aldershot (UK). (Chapters 7, 8 and 9)
• Selected resources provided by the instructor on Aulaweb.

TEACHERS AND EXAM BOARD

Exam Board

GIOVANNI SATTA (President)

GIAN ENZO DUCI

CIDATMA-FRANCESCO VITELLARO

BIANCA VOTTERO

LESSONS

LESSONS START

Sem: II

Class schedule

INVESTMENT MANAGEMENT AND FUNDING OF TRANSPORT COMPANIES

EXAMS

EXAM DESCRIPTION

Written exam with open-ended questions.

ASSESSMENT METHODS

The exam aims to assess the awareness and the know-how of the student concerning main issues related to financial and investment decisions in logistics and transport sector, predominantly assuming a private perspective.

Also the knowledge and core competences developed by the student with regards managerial tools for managing port-related and shipping companies, airlines and railway companies as well as firms operating in the cruise industry along with a strategic and financial perspective will be evaluated.

The exam, therefore will include both semi-structured open questions and fixed questions. 

Exam schedule

FURTHER INFORMATION

Preparatory courses

• Economia Aziendale