Special Topics in Finance and Accounting(G465)
| Course Code | Course Name | Semester | Theory | Practice | Lab | Credit | ECTS |
|---|---|---|---|---|---|---|---|
| G465 | Special Topics in Finance and Accounting | 5 | 3 | 0 | 0 | 3 | 5 |
| Prerequisites | |
| Admission Requirements |
| Language of Instruction | Turkish |
| Course Type | Elective |
| Course Level | Bachelor Degree |
| Course Instructor(s) | Melik ERTUĞRUL mertugrul@gsu.edu.tr (Email) |
| Assistant | |
| Objective | This course aims to introduce several topics of corporate finance which are not analyzed by introductory finance courses in detail. This course forces students to read and understand “greatest hits” in corporate finance, and it aims to teach students several valuation and financing methods. |
| Content |
Week 1. Corporate Governance & Agency Costs – I Week 2. Corporate Governance & Agency Costs – II Week 3. Corporate Social Responsibility Week 4. Mergers & Acquisitions – I Week 5. Mergers & Acquisitions – II Week 6. Executive Remuneration Week 7. Political Connections Week 8. Entrepreneurial Finance – I Week 9. Entrepreneurial Finance – II Week 10. Capital Structure – I Week 11. Capital Structure – II Week 12. Dividend Policy Week 13. Project Finance Week 14. Trade Finance |
| Course Learning Outcomes |
Students who complete this course should be able to: 1. Understand why corporate governance and agency costs are so significant. 2. Comprehend the logic behind M&As, M&A valuation and defense mechanisms. 3. Have an idea about executive renumeration and political connections. 4. Analyze capital structure and dividend decisions from a theoretical and practical perspective. 5. Understand practical financing techniques including project finance and trade finance. |
| Teaching and Learning Methods | |
| References |
Weeks 1-2: • Jensen, M. C., and W. H. Meckling, 1976, Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure, Journal of Financial Economics 3, 305-360. • Jensen, M. C., 1986, Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers, American Economic Review 76, 323-329. • Shleifer, A., and R. Vishny, 1997, A Survey of Corporate Governance, Journal of Finance 52, 139-157. • Gompers, P., J. Ishii, and A. Metrick, 2003, Corporate Governance and Equity Prices, Quarterly Journal of Economics 118, 107-156. Week 3: • Ferrell, A., H. Liang, H., and L. Renneboog, 2016, Socially responsible firms, Journal of Financial Economics, 122(3), 585-606. • Liang, H. and L. Renneboog, 2014, Finance and Society: the Foundations of Corporate Social Responsibility, WP CentER. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2360633 • Flammer, C., 2015, Does Corporate Social Responsibility Lead to Superior Financial Performance? A Regression Discontinuity Approach, Management Science 61, 2549– 568. Weeks 4-5: • Martynova, M. and L. Renneboog, 2008, A century of corporate takeovers: What have we learned and where do we stand?, Journal of Banking and Finance 32 (10), 2148-77. • Rhodes-Kropf, M. and S. Viswanathan, 2004, Market Valuation and Merger Waves, Journal of Finance 59(6), 2685-2718. • Martynova, M. and L. Renneboog, 2008, Spillover of Corporate Governance Standards in Cross-Border Mergers and Acquisitions, Journal of Corporate Finance 14, 200-223. • Martynova, M. and L. Renneboog, 2009, What Determines the Financing Decision in Corporate Takeovers: Cost of Capital, Agency Problems, or the Means of Payment?, Journal of Corporate Finance 15 (3), 290-315. • Betton, S., E. Eckbo, R. Thompson and K. Thorburn, 2014, Merger Negotiations with Stock Market Feedback, Journal of Finance, The Journal of Finance 69, 1705–1745. • Servaes, H. and A. Tamayo, 2014, How do industry peers respond to control threats?, Management Science 60, 380 – 399 Week 6: • Malmendier, U., and G. Tate, 2009, Superstar CEOs, The Quarterly Journal of Economics 124 (4), 1593-1638. • Nihat A., E. de Bodt, H. Bollaert, and R. Roll, 2015, CEO Narcissism and the Takeover Process: From Private Initiation to Deal Completion, Journal of Financial and Quantitative Analysis • Jenter, D., and Kanaan, F. 2015. CEO turnover and relative performance evaluation, Journal of Finance 70 • Geiler, Ph. and L. Renneboog, 2015, Are Female Top Managers Really Paid Less?, Journal of Corporate Finance 35, 345-369. Bertrand, M. and Mullainathan, 2001, Are CEOs paid for luck? The ones without principals are, Quarterly Journal of Economics 116, 901-932. • Kulich, C., S. A. Haslam, L. Renneboog, M. Ryan, and G. Trojanowski, 2011, Who Gets the Carrot and Who Gets the Stick? Evidence of Gender Disparities in Executive Remuneration, Strategic Management Journal 32, 301-321 Week 7: • Fisman, R., 2001, Estimating the Value of Political Connections, American Economic Review, 91, 1095-1102. • Khwaja, A. I. and A. Mian, 2005, Do Lenders Favor Politically Connected Firms? Rent Provision in an Emerging Financial Market, Quarterly Journal of Economics, 120, 1371-1411. Weeks 8-9: • Robb, Alicia M., and David T. Robinson. "The Capital Structure Decisions of New Firms." Review of Financial Studies 27, no. 1 (2014): 153-179. • Cassar, Gavin. "The financing of business start-ups." Journal of Business Venturing 19, no. 2 (2004): 261-283. • Denis, David J. "Entrepreneurial finance: an overview of the issues and evidence." Journal of Corporate Finance 10, no. 2 (2004): 301-326. Weeks 10-11: • Miller, Merton H. 1988. "The Modigliani-Miller Propositions after Thirty Years." Journal of Economic Perspectives, 2, pp. 99-120. • M. R. Roberts and A. Sufi, 2009, "Control Rights and Capital Structure: An Empirical Investigation, Journal of Finance, 64, pp. 1657-1695. • Von Eije, H., and WL Megginson, “Dividends and share repurchases in the European Union”, Journal of Financial Economics 89, pp. 347-374. • M. R. Roberts, M. Lemmon and J. Zender, 2008, "Back to the Beginning: Persistence and the Cross-Section of Corporate Capital Structure" Journal of Finance, 63, pp. 1575-1608 Week 12: • Overview book: by DeAngelo, H., L. DeAngelo, D. Skinner, 2008, Corporate Payout Policy, Foundations and Trends in Finance Vol. 3 (2-3), 95-287 • Michaely, R. and M. Roberts, 2011, Corporate Dividend Policies: Lessons from Private Firms, Review of Financial Studies 25, 711-746 • Renneboog, L. and G. Trojanowski, 2011, Patterns in Payout Policy and Payout Channel Choice, Journal of Banking and Finance 35 (6), 1477-1490. Weeks 13-14: • Lecture Notes & Guest Speaker |
Theory Topics
| Week | Weekly Contents |
|---|---|
| 1 | Corporate Governance & Agency Costs – I |
| 2 | Corporate Governance & Agency Costs – II |
| 3 | Corporate Social Responsibility |
| 4 | Mergers & Acquisitions – I |
| 5 | Mergers & Acquisitions – II |
| 6 | Executive Remuneration |
| 7 | Political Connections |
| 8 | Entrepreneurial Finance – I |
| 9 | Entrepreneurial Finance – II |
| 10 | Capital Structure – I |
| 11 | Capital Structure – II |
| 12 | Dividend Policy |
| 13 | Project Finance |
| 14 | Trade Finance |
Practice Topics
| Week | Weekly Contents |
|---|
Contribution to Overall Grade
| Number | Contribution | |
|---|---|---|
| Contribution of in-term studies to overall grade | 3 | 40 |
| Contribution of final exam to overall grade | 1 | 60 |
| Toplam | 4 | 100 |
In-Term Studies
| Number | Contribution | |
|---|---|---|
| Assignments | 1 | 0 |
| Presentation | 1 | 0 |
| Midterm Examinations (including preparation) | 1 | 0 |
| Toplam | 3 | 0 |
| No | Program Learning Outcomes | Contribution | ||||
|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | ||
| Activities | Number | Period | Total Workload |
|---|---|---|---|
| Class Hours | 14 | 3 | 42 |
| Working Hours out of Class | 12 | 2 | 24 |
| Assignments | 1 | 17 | 17 |
| Presentation | 1 | 12 | 12 |
| Midterm Examinations (including preparation) | 1 | 15 | 15 |
| Final Examinations (including preparation) | 1 | 20 | 20 |
| Total Workload | 130 | ||
| Total Workload / 25 | 5,20 | ||
| Credits ECTS | 5 | ||