OVERVIEW

The course focuses on the advanced topics related to investments and financing decisions, both short- and long-term, the financial planning and risk and crisis management.

AIMS AND CONTENT

LEARNING OUTCOMES

The course aims to provide skills necessary for preparation and management of financial plan, from the perspective of a financial management operator and that of a business consultant, paying attention to recent evolution in financing model of italian SME's.

AIMS AND LEARNING OUTCOMES

Knowing the objectives of the main firm financial decisions

Knowing the impact of ownership and governance structures of financial decisions

Learning to estimate the cost of capital of listed and unlisted companies and to evaluate investments

Learning how to prepare a financial plan and identify suitable sources to cover any financial need

Understanding the concept of risk and knowing the principles, methods and tools of Enterprise Risk Management

Learning the main techniques to identify a crisis situation

Learning how to use the financial data available in the main databases

Improving communication skills, social interactions, strategic thinking and project development

PREREQUISITES

Students are expected to have acquired, during the bachelor path, knowledge about:

• capital budgeting techniques
• cost of capital
• financial structure decision
• cash flow determination and analysis

They are also advised to have a refresher:

S. Ross, D. Hillier, R. Westerfield, J. Jaffe, B. Jordan, “Corporate Finance” 3/ed, McGraw Hill, 2018, capp. 3,6,10,15.

TEACHING METHODS

Lectures with examples

Applications and database use

Debate

Role playing

Project-based learning

Project work in group

Case Studies, Seminars and Workshop with Professionals

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

Corporate Governance, firm value maximization and sustainable goals

• Relevance of ownership and governance structures
• Conflicts of interest and self-regulatory codes
• Stakeholder value maximization

Cost of capital and optimal financial structure

• CAPM applications
• Alternatives to CAPM
• Calculating Beta for listed and unlisted companies
• Marginal investor
• Behavioral perspective
• Cost of debt
• Rating

Financial Planning

• Operating budgets
• Forecast income statement and balance sheet
• Fixed capital investments: CAPEX – NPV – project analysis
• Fixed capital investment plan
• Inventory, credit and liquidity management
• Plan of investments in working capital
• Financial Plan and treasury plan

Funding decisions

• Cash holdings and dividend policy
• Structure of the financial system and main theories underlying financial structure choices
• Characteristics of traditional and alternative financing instruments
• Company’s life cycle and financing decisions

Enterprise Risk Management (ERM)

• Risks classification
• Objectives and phases of the ERM
• The CoSO framework (Committee of Sponsoring Organizations of the Treadway Commission)

Crisis management

• Definition of crisis and insolvency
• The adequate organizational, administrative and accounting structures
• Premonitory symptoms and preventive and timely diagnosis
• The sustainability of the debt and the practical test for verifying the reasonable viability of the rehabilitation
• Recovery plans, restructuring agreements and other out-of-court procedures

RECOMMENDED READING/BIBLIOGRAPHY

Slides and other materials provided by the lecturer

Brealey R., Myers S., Allen F. (2020). Principi di finanza aziendale, 8/edizione, McGrawHill

Watson D., Head A., Mantovani G., Rossi E. (2017). Finanza aziendale. Principi e pratica, 7/edizione Pearson Italia

Berk J., Demarzo P., Morresi O., Venanzi D. (2018), Finanza Aziendale 2, quarta edizione, Pearson, Milano

TEACHERS AND EXAM BOARD

Exam Board

ROSALIA SANTULLI (President)

LAURA NIERI

STEFANO PISERA'

LESSONS

LESSONS START

Second semester

Class schedule

ADVANCED CORPORATE FINANCE

EXAMS

EXAM DESCRIPTION

Written examination

Project work

ASSESSMENT METHODS

Assessment methods for attending students:

Project work presentation
The students will be asked to present the PW developed in group. It takes the form of the resolution of 5 tasks, applied to a real case, aimed at promoting learning through the practical application of the main theoretical contents of the course: analysis of corporate governance, financial planning, calculation of the cost of capital, identification of the optimal financial structure, enterprise risk management.
The presentation of the PWs also intends to verify students' ability to use the technical language required by the subject, to discuss the contents critically and to answer questions posed by the teacher and the classroom.

Written test
Attending students will also take a written test with multiple choice questions.

Assessment methods for attending students:

Written test
Non-attending students will take a written test with multiple choice questions, open questions and exercises.

Exam schedule