Instructors:	o.Univ.Prof. Dr. Engelbert Dockner, em.o.Univ.Prof. Dr. Josef Zechner
Type:	PI
Weekly hours:	2
Members (max.):	10
Registration period:	no data available

Class objective(s) (learning outcomes)

Wird in Kürze nachgereicht! Wird in Kürze nachgereicht! Wird in Kürze nachgereicht! Wird in Kürze nachgereicht! Wird in Kürze nachgereicht! Wird in Kürze nachgereicht!

Teaching and learning method(s)

PPT presentation of the course material by the instructor; class-room discussions; solution of cases/numerical examples in class.

Criteria for successful completion

There will be a midterm exam and a final exam. The midterm will be a 50 minutes exam and will make up 40 % of the overall grade, the final exam will be a 90 minutes exam and make up 60 %. The students can "earn" extra marks of up to 10% via active class room participation. The midterm exam will take place on April 7th the final exam is scheduled for May, 6th .

Availability of instructor(s) for contact by students

Vienna University of Economics and Business
Department of Finance and Accounting
Heiligenstädter Str. 46-48
1190 Wien
Tel: +431 31336-6302, mailto:engelbert.dockner@wu.ac.at

Day	Date	Time	Room
Wednesday	04/21/10	11:30 AM - 12:30 PM	S1 (H46)

A financial officer’s main responsibilities are to raise capital from the financial markets and to invest these funds in projects with positive net-present-values. In this course we mainly deal with the question of optimal capital structure, optimal dividend policy and optimal corporate risk management. We start with an analysis of dividend policy. We demonstrate that in perfect capital markets, firm value would not be affected by dividend decisions. We proceed by identifying the most important market imperfections which make dividend policy relevant. We then focus on firms' capital structure decisions. Again we start with an analysis in perfect capital markets and then identify the most important market imperfections. Besides taxes, we will focus extensively on the effect of conflicts of interest between management and shareholders and between shareholders and bondholders on the optimal choice of capital structure. We conclude by analysing the effect of bankruptcy costs and costs of financial distress on the optimal choice of a financial structure. Finally, we address the issue of corporate risk management. The discussion will initially focus on market imperfections which make hedging necessary. In a second step we will explore methods which can be used in implementing corporate risk management systems. In particular we will focus on the measurement of exposure and on the application of the hedging techniques for interest rate risk and operational risks. Students should be aware that we will frequently refer to theoretical models, based on equilibrium concepts from microeconomics and concepts from game theory. Thus, only those students who are also willing to analyse problems in a theoretical framework are advised to take this course.

Brealey, Myers, Allen: Corporate Finance, McGraw Hill/Irwin, 8th edition, 2006; Content relevant for class examination: Ja; Content relevant for degree examination: Nein; Recommendation: Stark empfohlen (aber nicht absolute Kaufnotwendigkeit)

Copeland, Weston, Shastri: Financial Theory and Corporate Policy, Pearson/Addison Wesley, 4th edition, 2004; Content relevant for class examination: Ja; Content relevant for degree examination: Nein; Recommendation: Stark empfohlen (aber nicht absolute Kaufnotwendigkeit)

Ross, Westerfield, Jaffee: Corporate Finance, McGraw Hill/Irwin, 7th edition, 2006; Content relevant for class examination: Ja; Content relevant for degree examination: Nein; Recommendation: Stark empfohlen (aber nicht absolute Kaufnotwendigkeit)

Berk, DeMarzo: Corporate Finance, Pearson/Addison,, International edition, 2007; Content relevant for class examination: Ja; Content relevant for degree examination: Nein; Recommendation: Stark empfohlen (aber nicht absolute Kaufnotwendigkeit)

Bodie, Kane, Marcus: Investments, McGraw-Hill/Irwin/New York., 2002; Content relevant for class examination: Keine Angabe; Content relevant for degree examination: Keine Angabe; Recommendation: Stark empfohlen (aber nicht absolute Kaufnotwendigkeit)

Robert Haugen: Modern Investment Theory, Prentice Hall, 5th edition,, 2001; Content relevant for class examination: Keine Angabe; Content relevant for degree examination: Keine Angabe; Recommendation: Referenzliteratur

David Luenberger: Investment Science, Oxford University Press, 1998; Content relevant for class examination: Keine Angabe; Content relevant for degree examination: Keine Angabe; Recommendation: Referenzliteratur

Mark Grinblatt and Sheridan Titman: Financial Markets and Corporate Strategy, McGraw-Hill/Irwin, New York., 2002; Content relevant for class examination: Keine Angabe; Content relevant for degree examination: Keine Angabe; Recommendation: Referenzliteratur