Course 2023-2024 a.y.

20265 - INTERNATIONAL CORPORATE FINANCE

Department of Finance

Course taught in English

Go to class group/s: 31

CLMG (6 credits - I sem. - OP | 12 credits SECS-P/09) - M (6 credits - I sem. - OP | SECS-P/09) - IM (6 credits - I sem. - OP | SECS-P/09) - MM (6 credits - I sem. - OP | SECS-P/09) - AFC (6 credits - I sem. - OP | SECS-P/09) - CLELI (6 credits - I sem. - OP | SECS-P/09) - ACME (6 credits - I sem. - OP | SECS-P/09) - DES-ESS (6 credits - I sem. - OP | SECS-P/09) - EMIT (6 credits - I sem. - OP | SECS-P/09) - GIO (6 credits - I sem. - OP | SECS-P/09) - DSBA (6 credits - I sem. - OP | SECS-P/09) - PPA (6 credits - I sem. - OP | SECS-P/09) - FIN (6 credits - I sem. - OP | SECS-P/09)

Course Director:
CARLO MARIA PINARDI

Classes: 31 (I sem.)

Instructors:
Class 31: CARLO MARIA PINARDI

Suggested background knowledge

The course is designed to provide students with an introduction to international corporate finance.

Mission & Content Summary

MISSION

Students will learn about global financial markets and institutions, the foreign exchange market, international parity relationships, managing risk in international finance, and making investment and financing decisions in an international environment. The emphasis is on the economic and financial principles of international financial management, as well as its institutional features. These financial principles and institutional features are both relevant and useful for business professionals who operate in an increasingly competitive and global economy. Given the nature of the topics covered and the assigned work, this course has significant analytical and quantitative components throughout.

CONTENT SUMMARY

The program is based on 24 class meetings, some of which may be moderated by external industry visitor speakers. The following topics will be covered:

- Foundations of the international financial management – objectives, role, players, and corporate governance

- The foreign exchange market, exchange rates determination, international parity relationships and using derivatives to manage FX risk

- Management of transaction, economic and translation exposures

- Raising funds in the international bond and equity markets

- Investment and financing decisions in an international environment

- International portfolio investments

- Multinational tax management.

Intended Learning Outcomes (ILO)

KNOWLEDGE AND UNDERSTANDING

At the end of the course student will be able to...

Students will be able to make informed investment and financial decisions in a global setting and use the tools required to manage international finance risk.

Estimate exchange rates.
Distinguish and manage risk in international finance.
Recognize the investment and financial issues faced by managers in a global setting.

APPLYING KNOWLEDGE AND UNDERSTANDING

At the end of the course student will be able to...

Use the tools required to manage international finance risk and make informed investment and financial decisions in a global setting.

Teaching methods

Face-to-face lectures
Guest speaker's talks (in class or in distance)
Exercises (exercises, database, software etc.)
Case studies /Incidents (traditional, online)
Individual assignments
Group assignments
Interactive class activities on campus/online (role playing, business game, simulation, online forum, instant polls)

DETAILS

Several exercise sessions are organized to ensure that students are able to apply the concepts disussed.
Lectures by external industry visitor speakers and case studies are used to link theory with practice.
Students are asked to submit individual assignments as a way to assertain their participation in the course.

Assessment methods

	Continuous assessment	Partial exams	General exam
Written individual exam (traditional/online)		x	x
Individual assignment (report, exercise, presentation, project work etc.)	x
Group assignment (report, exercise, presentation, project work etc.)	x
Active class participation (virtual, attendance)	x

ATTENDING STUDENTS

Valuation is based on a midterm and a final exam. Each exam carries a weight of 50% of the final grade. The exams are written and include a combination of multiple-choice questions and problems. In the first exam students are asked to solve problems related to determining exchange rates, distinguishing and managing different types of risk exposure. In the second exam, students are asked to solve problems and use critical thinking to find the most appropriate solution regarding multinational firms' financing and investment decisions. The first exam is administered at the end of the first part of the semester and the second - at the end of the semester. A passing grade is required on both exams. If a student fails, scores a low grade, or misses the first optional partial exam (but has completed all work required for attending students) they may choose to take a cumulative final exam, which will be administered on the same date as that of the second partial exam. The cumulative exam has the same structure as the two partial exams and tests students using problems and multiple choice questions on their knowledge of and ability to apply the tools required to manage international finance risk as well as making financial and investment decisions in an international business environment. Students also complete at least three (out of five possible) quizzes and three (out of four possible) cases. The quizzes are conducted in the first part of the semester and there is one quiz on each main topic covered. The cases are discussed in the second part of the semester and focus on the topics of raising debt and equity, determining cost of capital, investment decisions and corporate restructuring. Students may earn up to three extra points from quizzes and cases to be added to their final grade, which cannot exceed 31. If an attending student opts to take the cumulative exam, their extra credit points (the average of the points from quizzes and cases) will be added to their final exam grade.

NOT ATTENDING STUDENTS

Non-attending students take a cumulative final exam. The exam is based on all textbook chapters (and pertaining exercises) listed in the syllabus (under the Course Outline). The exam is written and includes a combination of multiple-choice questions, open-ended essay questions, and problems and tests students using problems and multiple choice questions on their knowledge of and ability to apply the tools required to manage international finance risk as well as making financial and investment decisions in an international business environment. Non-attending students cannot earn extra credit.

Teaching materials

ATTENDING STUDENTS

C. Eun, B. Resnick, T. Chuluum International Financial Management, Tenth Edition, McGraw-Hill, 2023

For purchase options please visit:

https://www.mheducation.co.uk/international-financial-management-ise-9781266224058-emea-group

Real-world, up-to-date case studies will be discussed in class, often with top executives of the companies involved.

PowerPoint slides and supplementary teaching materials available on Blackboard.

Some topics will require additional materials such as Excel templates, journal articles and financial reports,which will be distributed through the course webpage on Blackboard.