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.
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.
■Introductionary Lecture: Efficient market and Corporate Finance (Inoue)
Fama (1991) Efficient Market ii
Harvey, Liu, and Zhu (2014), “…and the Cross-section of Expected return, ” mimeo.
■Long-term Performance (Ikeda)
Lyon, Barber and Tsai (1999), "Improved Methods for Tests of Long-Run Abnormal Stock Returns,'' Journal of Finance, 54 (1), 165-201.
Fama (1998), "Market efficiency, long-term returns, and behavioral finance,'' ournal of Financial Economics, 49 (3), 283-306.
■Law and Finance（Inoue）
Spamann (2010), “The "Antidirector Rights Index" Revisited, ” Review of Financial Studies, 23 (2), 467-486.
La Porta et al. (1998) Law and Finance
La Porta et al. (2008) The Economic Consequences of Legal Origins
■Corporate Governance (Inoue)
Gompers, P.A., J.L.Ishii, and A.Metrick (2003) Corporate Governance and Equity Prices
Shleifer and Vishny (1997) A Survey of Corporate Governance
Bertrand and Mullainathan (2003) Enjoying the Quiet Life? Corporate Governance and Managerial Preferences
Jensen (1986) “Agency Costs of Free Cash Flow and Corporate Control.”
■Management and Firm Performance（Inoue）
Nicholas Bloom and John Van Reenen, (2007) Measuring and Explaining Management Practices Across Firms and Countries, Quarterly Journal of Economics 122 (4): 1351-1408.
S. N. Kaplan (1997) Corporate Governance and Corporate Performance: A Comparison of Germany, Japan and the U.S.
Cai and Vijh (2007), Incentive Effects of Stock and Option Holdings of Target and Acquirer CEOs, Journal of Finance
Core, J.E, W.R.Guay, and D.F. Larcher (2003), Executive Equity Compensation and Incentives: A Survey
Frydman, C. (2007) Rising Through the Ranks: The Evolution of the Market for Corporate Executives, 1936-2003
Jay Dahyaa, J., O. Dimitrovb, J.J. McConnell (2008) Dominant shareholders, corporate boards, and corporate value: A cross-country analysis
Malmendier and Tate (2005), CEO Overconfidence and Corporate Investment, Journal of Finance, 2005, 60, 2261-2700
Baker. M. Ruback, R. and Wurgler, J. Behavioral Corporate Finance
Opler, T., L. Pinkowitz, R. M. Stulz, and R. Williamson (1999), “The Determinants and Implications of Corporate Cash Holdings,”Journal of Financial Economics 52 (1), 3-46.
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.
■Initial Public Offering（Ikeda）
Derrien and Womack (2003), "Auctions vs. Bookbuilding and the Control of Underpricing in Hot IPO Markets,'' Review of Financial Studies, 16 (1), 31-61.
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.
■Mergers and Acquisitions（Inoue）
Jesse Ellis, Sara B. Moeller, Frederik P. Schlingemann, René M. Stulz (2012) Globalization, Governance, and the Returns to Cross-Border Acquisitions
Andrade, Mitchell and Stafford (2001) New Evidence and Perspectives on
■Theory and Practice
Graham, J. and C. Harvey (2001) “The theory and practice of corporate finance: Evidence from the field” Journal of Financial Economics 60, 187-243
■Case 1: HBS9-201-063: Seagate Technology Buyout（Inoue）
Topic: Efficient Market and Behavioral Corporate Finance
To be distributed in the class.
■Case 2: HOYA and Pentax (Inoue)
Topic: Mergers and Acquisitions, Board of Directors, Large Shareholders
To be distributed in the class.
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.
Finance, Accounting, Corporate Governance
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%).