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.

TEACHING METHODS

Lectures, case studies and seminars.

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).

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.