- Lecturer
- Inoue Kotaro
- Place
- Tue1-2(W9-311)
- Credits
- Lecture2 Exercise0 Experiment0
- Code
- 67079
- Syllabus updated
- 2015/9/24
- Lecture notes updated
- 2015/9/16
- Semester
- Fall Semester
Outline of lecture
This is a graduate school course of corporate finance. Its goal is to bring master students to the fundamental of corporate finance study so that they can start their own research in this field and other related field such as investment, corporate management, and accounting. Participants are expected to have basic knowledge of finance such as capital assets pricing model (CAPM) beforehand. This course will follow recent literature in discussing central topics of corporate finance such as corporate governance, capital structure, IPO, mergers and acquisitions, and behavioral corporate finance. In particular, we will focus on empirical studies in these fields. All the participants are expected to read all the assigned papers. In addition, each participant will be assigned several papers in the following reading list. The number of assigned paper per student will depend on the class size. The assigned students are expected to read and analyze the paper deeply to prepare presentation about the paper and lead discussion on the paper in the classes. Other students are also expected to read the paper and prepare discussion in the class. In the last two classes, we will discuss cases to provide students a sense how implications from academic researched and real businesses interact.
Purpose of lecture
Its goal is to bring master students to the fundamental of corporate finance study so that they can start their own research in this field and other related field such as investment, corporate management, and accounting.
Plan of lecture
笆Introductionary Lecture: Efficient market and Corporate Finance (Inoue)
(Reference Paper)
Fama (1991) Efficient Market ii
http://www.jstor.org/stable/2328565
Harvey, Liu, and Zhu (2014), 窶懌ｦand the Cross-section of Expected return, 窶 mimeo.
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2249314
笆Long-term Performance (Ikeda)
(Assign paper)
Lyon, Barber and Tsai (1999), "Improved Methods for Tests of Long-Run縲Abnormal Stock Returns,'' Journal of Finance, 54 (1), 165-201.
http://www.jstor.org/stable/i302119
(Reference Paper)
Fama (1998), "Market efficiency, long-term returns, and behavioral finance,'' ournal of Financial Economics, 49 (3), 283-306.
http://www.sciencedirect.com/science/journal/0304405X/49/3
笆Law and FinanceｼInoueｼ
(Assigned Paper)
Spamann (2010), 窶弋he "Antidirector Rights Index" Revisited, 窶 Review of Financial Studies, 23 (2), 467-486.
http://www.jstor.org/stable/40468317
(Reference paper)
La Porta et al. (1998) Law and Finance
http://mba.tuck.dartmouth.edu/pages/faculty/rafael.laporta/docs/publications/LaPorta%20PDF%20Papers-ALL/Law%20and%20Finance-All/Law%20and%20Finance.pdf
La Porta et al. (2008) The Economic Consequences of Legal Origins
http://www.economics.harvard.edu/faculty/shleifer/files/consequences_JEL_final.pdf
笆Corporate Governance (Inoue)
(Assign paper)
Gompers, P.A., J.L.Ishii, and A.Metrick (2003) Corporate Governance and Equity Prices
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=278920
(Reference paper)
Shleifer and Vishny (1997) A Survey of Corporate Governance
http://www.economics.harvard.edu/faculty/shleifer/files/SurveyCorpGov.pdf
笆CEOｼInoueｼ
(Assign Paper)
Bertrand and Mullainathan (2003) Enjoying the Quiet Life? Corporate Governance and Managerial Preferences
http://dash.harvard.edu/bitstream/handle/1/3429713/Mullainathan_EnjoyingQuietLife.pdf?sequence=2
(Reference Paper)
Jensen (1986) 窶廣gency Costs of Free Cash Flow and Corporate Control.窶
http://www.sml.hw.ac.uk/ms75/GP%20Papers/G32.pdf
笆Management and Firm PerformanceｼInoueｼ
(Assign Paper)
Nicholas Bloom and John Van Reenen, (2007) Measuring and Explaining Management Practices Across Firms and Countries, Quarterly Journal of Economics 122 (4): 1351-1408.
http://www.stanford.edu/~nbloom/MeasuringManagement.pdf
(Reference Paper)
S. N. Kaplan (1997) Corporate Governance and Corporate Performance: A Comparison of Germany, Japan and the U.S.
http://onlinelibrary.wiley.com/doi/10.1111/j.1745-6622.1997.tb00627.x/abstract
笆Managerial Compensation
(Assign Paper)
Cai and Vijh (2007), Incentive Effects of Stock and Option Holdings of Target and Acquirer CEOs, Journal of Finance
http://faculty.lebow.drexel.edu/CaiJ/JF2007.pdf
(Reference Paper)
Core, J.E, W.R.Guay, and D.F. Larcher (2003), Executive Equity Compensation and Incentives: A Survey
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=794806
Frydman, C. (2007) Rising Through the Ranks: The Evolution of the Market for Corporate Executives, 1936-2003
http://web.mit.edu/frydman/www/frydman_market%20for%20executives.pdf
笆Large Shareholders
(Assign Paper)
Jay Dahyaa, J., O. Dimitrovb, J.J. McConnell (2008) Dominant shareholders, corporate boards, and corporate value: A cross-country analysis
http://www.sciencedirect.com/science/article/pii/S0304405X07001389
笆Managerial Overconfidence
(Assigned Paper)
Malmendier and Tate (2005), CEO Overconfidence and Corporate Investment, Journal of Finance, 2005, 60, 2261-2700
http://www.nber.org/papers/w10807
(Reference Paper)
Baker. M. Ruback, R. and Wurgler, J. Behavioral Corporate Finance
http://pages.stern.nyu.edu/~jwurgler/papers/wurgler_baker_ruback.pdf
笆Cash HoldingsｼIkedaｼ
(Assign Paper)
Opler, T., L. Pinkowitz, R. M. Stulz, and R. Williamson (1999), 窶弋he Determinants and Implications of Corporate Cash Holdings,窶扣ournal of Financial Economics 52 (1), 3-46.
http://fisher.osu.edu/supplements/10/10402/Determinants-cash-holdings.pdf
(Reference Paper)
Bates, Kahle and Stulz (2009) "Why Do U.S. Firms Hold so Much More Cash than They Used To?'' Journal of Finance 64 (5), 1985-2021.
http://www.jstor.org/stable/i27735160
笆Initial Public OfferingｼIkedaｼ
(Assign Paper)
Derrien and Womack (2003), "Auctions vs. Bookbuilding and the Control of Underpricing in Hot IPO Markets,'' Review of Financial Studies, 16 (1), 31-61.
http://www.jstor.org/stable/i253959
(Reference Paper)
Kutsuna and Smith (2004), "Why Does Book Building Drive out Auction Methods of IPO Issuance? Evidence from Japan,'' Review of Financial Studies, 17 (4), 1129-1166.
http://www.jstor.org/stable/i278691
笆Mergers and AcquisitionsｼInoueｼ
(Assign Paper)
Jesse Ellis, Sara B. Moeller, Frederik P. Schlingemann, Renﾃｩ M. Stulz (2012)縲Globalization, Governance, and the Returns to Cross-Border Acquisitions
http://www.erim.eur.nl/fileadmin/erim_content/documents/EMSS_May_31_Final.pdf
(Reference paper)
Andrade, Mitchell and Stafford (2001) New Evidence and Perspectives on
Mergers, JEP15(2)
http://www.people.hbs.edu/estafford/Papers/NewEvidence_PerspectivesOnMergers.pdf
笆Theory and Practice
(Assign Paper)
Graham, J. and C. Harvey (2001) 窶弋he theory and practice of corporate finance: Evidence from the field窶 Journal of Financial Economics 60, 187-243
http://faculty.fuqua.duke.edu/~jgraham/website/SurveyPaper.PDF
笆Case 1: HBS9-201-063: Seagate Technology BuyoutｼInoueｼ
Topic: Efficient Market and Behavioral Corporate Finance
To be distributed in the class.
笆Case 2: HOYA and Pentax (Inoue)
Topic: Mergers and Acquisitions, Board of Directors, Large Shareholders
To be distributed in the class.
Textbook and reference
This class does not have "text book", but students who do not have sufficient knowledge about finance and corporate governance should read basic finance text book such as "Corporate Finance" by Jonathan Berks and Peter DeMarzo.
Related and/or prerequisite courses
Finance, Accounting, Corporate Governance
Evaluation
The grade of this course is based on the report for the assigned paper and discussion participation (80%), and class participation in the case study classes (20%).縲縲
