Advanced Corporate Finance

The course aims at providing a thorough survey of theoretical and empirical work in modern Corporate Finance. The course is targeted at students that previously have taken courses in Corporate Finance. The course mainly aims at explaining theories on corporate governance, principal-agency and asymmetric information. Topics covered in the course are:

• A broad overview of corporate governance and corporate financing
• Outside financing capacity, agency cost, role of net worth, equity multiplier, and capital structure
• Some determinants of borrowing capacity, diversification and incentives, inalienable human capital, re-deployable assets, build-up of net worth.
• Liquidity and risk management,
• Corporate financing under asymmetric information.

This is achieved in two stages. In the first stage the focus is on lectures aiming at familiarizing students with different theoretical models. The second stage includes a case where the aim is to relate models to real world phenomena. This will improve students' ability to analyse, construct and draw conclusions on real world problems and, to emphasize the economic aspects rather than mathematical difficulties. Cases will be introduced during the course.