This is a master's course of corporate finance and corporate governance.
This course will follow recent literature of corporate finance such as capital market, corporate governance, corporate ownership structure, institutional investors, and banks. In particular, the course will focus on empirical studies in these fields. Participants also participate group works related to the above topics.
The goal of this course is to understand the priciples of corporate finance so that class participants can start their own researches in this field and other related fields such as investment, corporate management, and accounting.
✔ Applicable | How instructors' work experience benefits the course |
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Kotaro Inoue, the instructor of this course, has 15 years experience as a practitioner in finance in a bank and a investment banking service. He will utilize his experience at most in his classes. |
Corporate Finance, Corporate Governance, Asset Pricing, Mergers and Acquisitions, Behavioral Finance
✔ Specialist skills | ✔ Intercultural skills | ✔ Communication skills | ✔ Critical thinking skills | ✔ Practical and/or problem-solving skills |
All the students are expected to read all the assigned papers. Each student 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 carefully and prepare presentation about the paper and lead discussion in the class. Other students are expected to read the paper and prepare discussion. In the final two classes, students will participate group research projects to have a sense how implications from academic researches and real businesses interact.
Course schedule | Required learning | |
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Class 1 | Introductionary Lecture: Efficient market and Corporate Finance | (Reference Paper) Fama (1991) Efficient Market ii http://www.jstor.org/stable/2328565 |
Class 2 | 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 | Graham, J. and C. Harvey (2001) “The theory and practice of corporate finance: Evidence from the field” Journal of Financial Economics 60, 187-243 http://faculty.fuqua.duke.edu/~jgraham/website/SurveyPaper.PDF |
Class 3 | Law and Finance La Porta et al. (1998) “Law and Finance” | (Assigned Paper) La Porta et al. (1998) “Law and Finance” http://onlinelibrary.wiley.com/doi/10.1111/1540-6261.00457/pdf |
Class 4 | Corporate Governance Gompers, P.A., J.L.Ishii, and A.Metrick (2003) Corporate Governance and Equity Prices | (Assigned 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 |
Class 5 | CEO Bertrand and Mullainathan (2003) Enjoying the Quiet Life? Corporate Governance and Managerial Preferences | (Assigned 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 |
Class 6 | Management and Firm Performance Nicholas Bloom and John Van Reenen, (2007) Measuring and Explaining Management Practices Across Firms and Countries, Quarterly Journal of Economics 122 (4): 1351-1408. | (Assigned 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 |
Class 7 | Managerial Compensation Cai and Vijh (2007), Incentive Effects of Stock and Option Holdings of Target and Acquirer CEOs, Journal of Finance | (Assigned 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 |
Class 8 | Large Shareholders Jay Dahyaa, J., O. Dimitrovb, J.J. McConnell (2008) Dominant shareholders, corporate boards, and corporate value: A cross-country analysis | (Assigned 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 |
Class 9 | Managerial Overconfidence Malmendier and Tate (2005), CEO Overconfidence and Corporate Investment, Journal of Finance, 2005, 60, 2261-2700 | (Assigned Paper) Malmendier and Tate (2005), CEO Overconfidence and Corporate Investment, Journal of Finance, 2005, 60, 2261-2700 http://www.nber.org/papers/w10807 |
Class 10 | Cash Holdings 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. | (Assigned Paper) 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. http://fisher.osu.edu/supplements/10/10402/Determinants-cash-holdings.pdf |
Class 11 | Initial Public Offering Derrien and Womack (2003), "Auctions vs. Bookbuilding and the Control of Underpricing in Hot IPO Markets,'' Review of Financial Studies, 16 (1), 31-61. | (Assigned 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 |
Class 12 | Mergers and Acquisitions Jesse Ellis, Sara B. Moeller, Frederik P. Schlingemann, René M. Stulz (2012) Globalization, Governance, and the Returns to Cross-Border Acquisitions | (Assigned Paper) Jesse Ellis, Sara B. Moeller, Frederik P. Schlingemann, René M. Stulz (2012) Globalization, Governance, and the Returns to Cross-Border Acquisitions http://www.erim.eur.nl/fileadmin/erim_content/documents/EMSS_May_31_Final.pdf |
Class 13 | Innovation JAN BENA and KAI LI(2014) “Corporate Innovations and Mergers and Acquisitions,” Journal of Finance 69(5) | (Assigned Paper) JAN BENA and KAI LI(2014) “Corporate Innovations and Mergers and Acquisitions,” Journal of Finance 69(5) http://onlinelibrary.wiley.com/doi/10.1111/jofi.12059/pdf |
Class 14 | Case 1: Seagate Technology Topic: Efficient Market and Behavioral Corporate Finance To be distributed in the class. | Prepair for case discussion in the class |
To enhance effective learning, students are encouraged to spend approximately 100 minutes preparing for class and another 100 minutes reviewing class content afterwards (including assignments) for each class.
They should do so by referring to textbooks and other course material.
n.a.
Principles of Corporate Finance, Brealey, Myers, and Allen, McGraw-Hill
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%).
Participants are expected to have basic knowledge of finance such as capital assets pricing model (CAPM) beforehand.