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Rsch Sch of Finance, Actuarial Studies & App Stats · ANU College of Business and Economics
This course provides an overview of modern corporate finance. The growth of corporate finance has been spectacular since Modigliani and Miller developed the capital-structure irrelevance proposition in 1958. After reviewing Modigliani and Miller (1958), we study the optimal capital structure under the presence of various frictions in which capital structure affects firm value. We cover the static trade-off theory, agency problem, principal-agent model, mechanism design approach of capital structure, and incomplete contracts. In addition, we cover the literature on investment and banking. Lastly, we cover modern empirical methods to test various hypotheses in corporate finance. In particular, we focus on quasi-experimental and structural approaches.
Typical assessment may include, but is not restricted to: assignments, presentations and other assessment as appropriate
Learning outcomes 1, 2, 3, 4
Students are expected to commit 130 hours of work in completing this course. This includes time spent in scheduled classes and self-directed study time.
Information about the prescribed textbook will be available via the Class Summary.