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Course 2015-2016 a.y.

30176 - FINANCIAL CONTRACTING


CLEAM - CLEF - CLEACC - BESS-CLES - BIEMF
Department of Finance

Course taught in English


Go to class group/s: 31

CLEAM (6 credits - II sem. - OP  |  SECS-P/09) - CLEF (6 credits - II sem. - OP  |  SECS-P/09) - CLEACC (6 credits - II sem. - OP  |  SECS-P/09) - BESS-CLES (6 credits - II sem. - OP  |  SECS-P/09) - BIEMF (6 credits - II sem. - OP  |  SECS-P/09)

Classes: 31 (II sem.)


Course Objectives

The aim of this course is to show how financing decisions are affected by moral hazard and asymmetric information and how different securities can (or cannot) mitigate the associated agency costs. The course reviews the theoretical literature on financial contracting.


Course Content Summary
  • Capital structure in a perfect market: the Modigliani-Miller propositions.
  • Early theories: debt overhang, pecking order.
  • Financing capacity with moral hazard: credit rationing.
  • Boosting the ability to borrow: monitoring, collateral, microfinance.
  • Corporate finance under asymmetric information.
  • Control rights.
  • Monitoring and ownership concentration.
  • Law, politics and finance.
  • The Financial Crisis.

Detailed Description of Assessment Methods
There is a written final exam, consisting of analytical exercises. A partial exam is scheduled.

Textbooks
The reading list and lecture notes are posted on the e-learning website

Prerequisites
None
Last change 27/03/2015 12:44