Code:

BERMASC007

Course type:

Advanced specialisation course

Long name:

The theory of corporate finance

ECTS:

5

Language:

English

Lecturer(s):

dr. M.A. Rosellón, dr. J.P.M. Suijs

Faculty:

RSM Erasmus University

Number of lectures:

10

Hours per lecture:

3

Goal:

Familiarize students with the main literature and areas of investigation in corporate finance, research techniques and recent developments

Course contents:

Refresher: game theory;

Valuation: certainty and uncertainty (martingale valuation);

Capital structure: classic theory and modern approaches (security design, financial contracting);

Hedging and derivatives;

Dividends and signaling;

Restructurings: M&A, going public, going private;

Law and finance.

Voluntary disclosure.

Disclosure and cost of capital.

Valuation models.

Examination:

to be announced

Literature:

The course will be based on classroom material, surveys of literature and key papers.

These are helpful textbooks:

Copeland, Weston and Shastri, Financial Theory and Corporate Policy, 4^th Edition, is a good basis (the course will be more advanced though).

De Matos, Theoretical Foundations of Corporate Finance, covers several topics in a unified way and will be helpful.