Corporate Finance in Emerging Economies

COURSE OBJECTIVE
BRIDGING THEORY AND PRACTICE KNOWLEDGE: Demonstrates theoretical and empirical knowledge concerning the relevant areas in international business administration
After successfully completing this course, the student:
• can explain, contrast, and compare basic theories, models and concepts of corporate finance, specifically in relation to investment and financing decisions taken by firms.
• can describe differences regarding corporate finance in emerging versus developed economies.

APPLICATION: Can propose a solution to an international real-life business problem by applying relevant theories and methodologies.
After successfully completing this course, the student:
• is able to apply theoretical knowledge and explain investment and financing decisions taken by firms.

QUANTITATIVE SKILLS
• is able to apply common valuation models in corporate finance.

BROADENING YOUR HORIZON - STUDENTS ARE ABLE TO REFLECT ON THE ETHICAL AND SOCIAL IMPLICATIONS OF PROFESSIONAL AND GOVERNMENTAL DECISIONS
After successfully completing this course, the student:
• can explain the financial international, and (cross-)cultural context, including developed versus emerging economies.

COURSE CONTENT
The course Corporate Finance in Emerging Economies provides a discussion of most important financing decisions taken by firms. Throughout the course, we will put a particular emphasis on highlighting differences between developed and emerging economies. We will discuss capital structure decisions, payout policies, corporate valuation models, markets for corporate securities, and corporate governance. In particular the latter topics allow broad international comparisons due to historical, cultural, and regulatory differences across countries. After successfully attending this course, students should be able to: • Discuss differences between equity and debt financing • Critically assess assumptions and outcomes of most common valuation models • Highlight international differences in markets for financial securities and corporate governance

METHOD OF TEACHING
Lectures, Tutorials

TYPE OF ASSESSMENT
Written exam – Individual assessment Case assignments – Group assessment Mandatory attendance tutorials

RECOMMENDED BACKGROUND KNOWLEDGE
Finance