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|
|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, empirical study
|✔ 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|
|Class 1||Introductionary Lecture: Efficient market and Corporate Finance|
|Class 2||Lecture: Corporate Governance|
|Class 3||Paper Presentation: Institutional Investors: Field Study||(Assigned Paper) McCahery, J. A., Z. Sautner, and L. T. Starks, (2016), Behind the Scenes: The Corporate Governance Preferences of Institutional Investors, Journal of Finance 71(6), 2905-2932. https://onlinelibrary.wiley.com/doi/abs/10.1111/jofi.12393|
|Class 4||Paper Presentation: Institutional Investors: Ownership and Innovation||(Assigned paper) Aghion, Philippe, Van Reenen John, and Zingales Luigi (2013), “Innovation and Institutional Ownership,” American Economic Review, 103(1), 277-304. https://www.jstor.org/stable/23469643?seq=1#page_scan_tab_contents|
|Class 5||Paper Presentation and Discussion: Institutional Investor and Corporate Social Responsibility||(Assigned Paper) Alexander Dyck, Karl V. Lins, Lukas Roth, Hannes F. Wagner , (2019), Do institutional investors drive corporate social responsibility? International evidence, Journal of Financial Economics 131(3) https://www.sciencedirect.com/science/article/pii/S0304405X18302381|
|Class 6||Paper Presentation and Discussion: Passive Investor and Corporate Governance||(Assigned Paper) (Assigned Paper) Cornelius Schmidt and Rüdiger Fahlenbrach (2017), Do exogenous changes in passive institutional ownership affect corporate governance and firm value? Journal of Financial Economic 124(2), 285-306. Do exogenous changes in passive institutional ownership affect corporate governance and firm value? - ScienceDirect|
|Class 7||Paper Presentation and Discussion: Institutional Investor’s attention on Corporate Governance||(Assigned Paper) Peter Iliev, Jonathan Kalodimos, Michelle Lowry, (2019), Investors’ Attention to Corporate Governance, SSRN Working Paper (RFS forthcoming) https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3162407|
|Class 8||Paper Presentation and Discussion: Engagement by Institutional Investor||(Assigned Paper) Elroy Dimson and Oğuzhan Karakaş (2015), Active Ownership, Review of Financial Studies, 28(12) https://academic.oup.com/rfs/article/28/12/3225/1573572|
|Class 9||Paper Presentation and Discussion: Monitoring and Information Production by Banks||(Assigned Paper) HirofumiUchida, Gregory F.Udell, NobuyoshiYamori (2012), Journal of Financial Intermediation, 21(1), Loan officers and relationship lending to SMEs https://www.sciencedirect.com/science/article/abs/pii/S104295731100026X|
|Class 10||Paper Presentation and Discussion: Monitoring Costs of Banks||(Assigned Paper) João Granja, Christian Leuz, and Raghuram G. Rajan, Going the Extra Mile: Distant Lending and Credit Cycles, NBER WP https://www.nber.org/papers/w25196.pdf#search='Going+the+Extra+Mile%3A+Distant+Lending+and+Credit+Cycles'|
|Class 11||Paper Presentation: Corporate Governance in Japan||(Assigned Paper) Ikeda, Inoue and Watanabe (2018) Enjoying the Quiet Life: Corporate Decision-Making by Entrenched Managers, Jouranl of Japanese and International Economies 47, 55-69. https://www.sciencedirect.com/science/article/pii/S0889158317300916|
|Class 12||Group Presentation: International corporate finance and governance|
|Class 13||Group Presentation: International corporate finance and governance|
|Class 14||An Optional Extra Date: Summary of the lecture|
To enhance effective learning, students are encouraged to spend approximately 180 minutes preparing for class for each class.
They should do so by referring to textbooks and other course material.
Berk and DeMarzo, Corporate Finance: Global Edition, Pearson Education
The grade of this course is based on the report for the assigned paper and discussion participation (70%), and Group Presentation and contribution to the class discussion (30%).
Participants are expected to have basic knowledge of finance such as capital assets pricing model (CAPM) beforehand. Students who plan to take this course should send email to above email (inoue.k.aq) from your own titech email address to get Zoom information.
Students who plan to take this course should send email to above email (inoue.k.aq) from your own titech email address to get Zoom information.