This course aims to develop financial literacy, which is one of the essential abilities for any person in business and capital markets. The class starts with small retail business simulations. “Learning by doing” in a simple but practical setting gives students opportunities to gain better understanding of the consequences of managerial decisions through experiencing challenges that corporate managers face in running a business. In addition, class participants read and discuss assigned research papers on corporate governance, earnings management, and corporate social responsibility. Integrating the lessons from business start-up simulation with empirical research findings helps students realize issues existing behind numbers.
Students will have better understandings of the following issues:
- Management decisions and their consequences
- Effective use of financial metrics
- Incentives and conditions for earnings management
- Corporate governance and management decisions
|✔ Applicable||How instructors' work experience benefits the course|
|Addressing various issues in business practice.|
|✔ Specialist skills||✔ Intercultural skills||✔ Communication skills||Critical thinking skills||✔ Practical and/or problem-solving skills|
This course will use a variety of methods including business game, readings, case assignments, and discussions, with special focus on group works. Teams of two to three students will be formed to participate class room activities and complete assignments including team presentations.
|Course schedule||Required learning|
|Class 1||Overview||・Aim of this course ・Forming students' team|
|Class 2||Small retail business case discussion||・Case discussion ・Practice round|
|Class 3||Start-up a retail business||・Evaluation of business opportunity ・Financing decision|
|Class 4||Business environment||・Short presentation and 2nd round|
|Class 5||Business planing and analysis 1||・Short presentation and 3rd round|
|Class 6||Business planing and analysis 2||・Short presentation & 4th round|
|Class 7||Business planing and analysis 3||・Short presentation & 5th round|
|Class 8||Business planing and analysis 4||・Short presentation & 8th round|
|Class 9||Business planing and analysis 5||・Short presentation & 7th round|
|Class 10||Consequences of business decisions||・Short presentation & final round ・Lessons from business simulation|
|Class 11||The importance of reported earnings||・Short presentation and discussion ・The economic implications of corporate financial reporting"|
|Class 12||Earnings management||・Short presentation and discussion ・Dividend policy and earnings management across countries|
|Class 13||Corporate governance and the role of institutional investors||・Short presentation and discussion ・Does governance travel around the world?|
|Class 14||Corporate governance and CSR||・Short presentation and discussion ・Do institutional investors drive corporate social responsibility?|
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.
Reading suggestion will be available in class.
Handout will be available via OCW-i.
Course grade will reflect the following emphases:
- Homework/class assignments (60%)
- Class participation (40%)
Strong interests in the course subject.
Basic knowledge of accounting and corporate finance.