Theory and Practice of Financial Management
FP-tpfmDEAcad. year: 2020/2021
The course connects latest theoretical research in corporate finance with company value. Students will become familiar with up-to-date scientific results and discuss their impacts on development of companies. They will acquire relevant skills to successfully lead financials of companies in global economic setting.
Learning outcomes of the course unit
After completion of the course, student is able:
- to define company tasks and goals;
- to decide on suitability of financing forms;
- to apply company valuation methods;
- to apply the methods of investment assessment;;
- to know short-term liquidity management models.
Recommended optional programme components
Recommended or required reading
BRIGHAM, E. F., EHRHARDT, M. C. Financial Management: Theory and Practice, 13th Ed. Mason, OH: South-Western Cengage Learning: 2011.
DAMODARAN, A. Investment valuation: tools and techniques for determining the value of any asset. 3 Ed. New York: John Wiley & Sons. 2012.
KOLLER, T., GOEDHART, M., WESSELS, D. Measuring and Managing th Value of Companies. 6th Editon. New Jersey: Wiley. 2015
KOLLER, T., DOBS, R., HUYETT, B. Value: The Four Cornerstones of Corporate Finance 1st Edition. New Jersey: Wiley. 2010.
DAMODARAN, A. Damodaran on valuation: security analysis for investment and corporate finance. 2 Ed. Hoboken: John Wiley & Sons. 2006.
STEWART, J., HENSHER, D. A. Advances in Credit Risk Modelling and Corporate Bankruptcy Prediction. Cambridge University Press, 2008.
DEVOS, E., KADAPAKKAM, P. R., KRISHMAMURTHY, S. 2009. How Do Mergers Create Value? A Comparison of Taxes, Market Power, and Efficiency Improvements as Explanations for Synergies. Review of Financial Studies, 22(3), ISSN 1179-1211.
HUYGHEBAERT, N., LUYPAERT, M. 2010. Antecedents of growth through mergers and acquisitions: Empirical results from Belgium. Journal Of Business Research, 63(4), p. 392-403.
HANOUSEK, J., KOČENDA, E., SHAMSHUR, A. 2015. Corporate efficiency in Europe. Journal of Corporate Finance, 32, p. 24-40.
CHANG, X., DASGUPTA, S. 2009. Target Behavior and Financing: How Conclusive is the Evidence? Journal of Finance, 64(4), p. 1767-1796.
FACCIO, M., MARCHICA, M.-T., MURA, R. 2016. CEO gender, corporate risk-taking, and the efficiency of capital allocation. Journal of Corporate Finance, 39, p.193-209.
COMMANDER, S., SVEJNAR, J. 2011. Business environment, exports, ownership, and firm performance. The Review of Economics and Statistics, 93(1), p. 309-337.
Planned learning activities and teaching methods
Assesment methods and criteria linked to learning outcomes
The course evaluation is based on the level of the written professional essay (100 points), especially with regard to the topicality of the literary research and the discussion of the theoretical and empirical results in the area being dealt with. Topics will be assigned individually on the basis of the student’s research orientation. Basic literary sources will be recommended similarly. For successful completion of the course, the student has to earn 75 points.
Language of instruction
Definition of company financial goals and their measuring.
Performance measurement and assessment.
Strategic company valuation and value drivers’ identification
Models of cost of capitals. Capital structure decision making.
Mergers and acquisition efficiency
Solvency management and bankruptcy prediction.
The aim of the course is to deepen students' theoretical background in corporate finance and develop their analytical abilities in this important area. In particular, they will be able to identify and understand trends and their future impact on a development of companies.
Classification of course in study plans
- Programme DSP-CME Doctoral, 2. year of study, summer semester, 0 credits, compulsory-optional
- Programme DSP-CME-KS Doctoral, 2. year of study, winter semester, 0 credits, compulsory-optional
, 2. year of study, summer semester, 0 credits, compulsory-optional
- Programme DSP-CME Doctoral, 2. year of study, winter semester, 0 credits, compulsory-optional