Corporate Finance and Value Creation

Course Director: Alvin Chen

Overview:

Note: To complete the specialization, ensure you finalize both BE0452 and BE0453. Any completed course from a discontinued specialization will be counted as a course in addition to the degree and can never be counted as an elective course within the degree. This does not apply to exchange students.

For questions email: academic.advisor@hhs.se

Purpose

The purpose of this class is to provide a conceptual framework for key corporate finance decisions. It combines rigorous theoretical content and practical applications to help students understand how economic frictions shape a firm's financial strategy.

Content

The course content will include 1) Topics in capital budgeting (e.g., risk analysis, real options, forecasting). 2) Topics in capital structure (e.g., trade-off theory, Pecking order, financial distress, leasing) 3) Advanced topics in payout policy (stock buybacks) 4) Specialized and applied topics in corporate finance (e.g., SPAC, trade credit, corporate control, governance, fintech, security design).

Format & Structure:

The course is primarily based on lectures, seminars, and case discussions. The lectures will introduce concepts and techniques by presenting formal theories, practical examples, and short case studies. The students will refine their understanding of the material through individual assignments and group work. In addition, the students will apply their learning to real-world situations by preparing and discussing two longer case studies. The focus on case applications allows the students to connect the theories of corporate finance to actual practice.

Attendance at lectures, seminars, and case study discussions is highly recommended, as much of the course content is not in the textbook. Guest lecturers may be invited to introduce some special topics. The final exam is comprehensive and based on concepts discussed during lectures, case discussions, and guest lectures.

Course Administrator: Anneli.Sandbladh@hhs.se

After completing this course, students should be able to:

1. Understand the complex interactions between financing and the valuation of projects due to market imperfections such as information asymmetry and agency problems.
2. Evaluate corporate investment proposals using real options analysis and traditional valuation methods.
3. Understand how real options interact with information asymmetry and agency issues.
4. Assess the capital structure policy of a firm in imperfect capital markets.
5. Understand the relationship between the modes of financing and the firm's investment policy.

SSE students: To be admitted to a specialization, the student must fulfill the following criteria no later than after the examination period in December/January before the specialization starts.

• have passed at least 45 ECTS credits out of the mandatory course requirements.
• have passed the mandatory courses required for the specialization: BE0401 Finance I, BE0402 Finance II, BE0601 Data Analytics I, and BE0602 Data Analytics II

Exchange students are assumed to have a good knowledge of basic accounting and financial statement analysis and prior knowledge in finance corresponding to the first two Bachelor's courses in Finance.

Please note that the textbook readings mainly provide background and supplemental information (the primary information is in the lectures). We will not cover all the details contained in the book chapters. We will often cover material based on selected academic works not found in the textbook.

The final examination consists of a closed book/notes written exam featuring free-response and quantitative problems; the exam is to be completed individually. An approved calculator may be used on the exam.

Find the course schedule in TimeEdit

Have you been granted educational support because of a documented disability? If so, please contact the course director as soon as possible so that adequate accommodations can be made.

Contact specialneeds@hhs.se if you have questions about being granted educational support or need a copy of your educational support certificate.

For more information, visit the Specific Educational Needs page on the Student Hub (login required).