Syllabus

Title
2085 ExInt: International Corporate Finance (Gruppe 1)
Instructors
Assoz.Prof. PD Dr. Jakob Müllner
Contact details
masterexint@wu.ac.at
Type
PI
Weekly hours
2
Language of instruction
Englisch
Registration
09/18/18 to 09/27/18
Registration via LPIS
Notes to the course
Subject(s) Master Programs
International Corporate Finance
Dates
Day Date Time Room
Tuesday 10/02/18 01:00 PM - 05:00 PM D1.1.078
Tuesday 10/09/18 01:00 PM - 05:00 PM D1.1.078
Tuesday 10/16/18 01:00 PM - 05:00 PM D1.1.078
Tuesday 10/23/18 01:00 PM - 05:00 PM D1.1.078
Tuesday 10/30/18 01:00 PM - 05:00 PM D1.1.078
Wednesday 11/14/18 01:00 PM - 03:00 PM TC.5.15

On this page:

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Contents

The course addresses classic corporate finance topics with a particular focus on international finance in small and medium enterprises.

The course covers topics such as:

  • Capital structure theory and decision
  • Company valuation in an international context (DCF, CAPM)
  • International capital budgeting & cost of capital
  • Exchange rate management
  • Interest rate management
  • Trade finance
  • International financial reporting and taxation
  • Foreign investment decisions
  • Real options, international joint ventures, and M&A
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Learning outcomes

During the course, students

  • have acquired theoretical and conceptual knowledge on international financial management,
  • learn about corporate valuation techniques,
  • have a systematic understanding of financial risk management techniques,
  • understand the relationships between taxation and finacne,
  • are knowledgeable about trade finance instruments,
  • understand strategic financial management in an international context.
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Attendance requirements

Presence in all sessions of the PI is required. Exceptions must be coordinated with the lecturer and must not exceed one full course session.

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Teaching/learning method(s)
  • The course is divided in lectures and interactive presentations. Each session will start with a written group assessment of the compulsory reader and last session's content. The written group assignments are not corrected. They serve merely for student self assessments. Questions from these assignments will form 70% of the final exam. This will be followed by a theoretical lecture on the topic at hand.
  • In groups, students present one empirical academic paper on the topic. Questions related to the student presentations will form 30% of the final exam.
  • Students are required to read compulsory readers before each session.
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Assessment
  • In class contributions (individual): 20%
  • Case study or paper presentation (group): 20%
  • Final exam (individual): 60%
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Prerequisites for participation and waiting lists
  • Students are expected to attend all sessions.
  • Student groups should prepare a 30-minute, power-point supported presentation of their assigned article. Students will receive a group grade. No individual marks can be awarded. Students are expected to contribute to the presentation to equal extents.
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Availability of lecturer(s)

Dr. Jakob Müllner
Associate Professor

WU Vienna - Wirtschaftsuniversität Wien
Institute for Export Management
Department of Global Business and Trade
Welthandelsplatz 1 / D1.5 OG, A-1020 Wien
Tel.: +43-1-313 36-4374
Fax: +43-1-313 36-90-4374
jakob.muellner@wu.ac.at
Open office hours: Tue 10-12

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Other

Teaching language is English.

Course materials and student papers can be in English.

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Unit details
Unit Date Contents
1 02.10.2018

Topic: Introduction to International Corporate Finance

Compulsory readers I:

(Butler, 2016) - Multinational Finance: Evaluating the Opportunities, Costs, and Risks of Multinational Operations; Chapters 1 & 13

Classroom Agenda:

  • Written group assessment on reader (25 min)
  • Administrative regards & assignment to group presentations

   Topics:

  • Introduction to International Corporate Finance
  • Internationalization Process Theories
  • International Entry Modes
       * Financial Implications
       * Financial Instruments
2 09.10.2018

Topic: International Finance and Exchange Rates & Derivatives

Compulsory reader II:

(Butler, 2016) - Multinational Finance: Evaluating the Opportunities, Costs, and Risks of Multinational Operations; Chapters 5-12

Classroom Agenda:

  • Written group assessment on compulsory readers I & II and content from last session (25 min)
  • Recap of last session

   Topics:

  • Reasons for hedging
  • Transaction risk
  • Economic risk
  • Translation risk
  • Futures
  • Options
  • Swaps

Paper presentation - Group 1 (30 min + 10 min discussion):

(Glaum & Klöcker, 2009) - Hedging of financial risks and hedge accounting according to IAS 39 - Findings of a survey on hedge accounting. Frankfurt am Main: PricewaterhouseCoopers and Justus-Liebig-Universität Gießen.
3 16.10.2018

Topic: International Capital Budgeting & Taxation

Compulsory readers III:

(Butler, 2016) - Multinational Finance: Evaluating the Opportunities, Costs, and Risks of Multinational Operations; Chapters 14-16

(Gallo, 2015) - A refresher on the cost of capital. Harvard Business Review (April).

Classroom Agenda:

  • Written group assessment on readers IV and content from last session (25 min)
  • Recap of last session

   Topics:

  • Capital budgeting
  • International Capital Structure
  • Taxes

Paper presentation - Group 3 (30 min + 10 min discussion):

(Stulz, 1999) - Globalization, corporate finance, and the cost of capital. Journal of Applied Corporate Finance, 12(3): 8-25.
4 23.10.2018

Topic: Financing International Operations 1: Trade Finance

Compulsory readers IV:

(Buckley, 2012) - International Finance: A practical perspective; Chapter 28

Classroom Agenda:

  • Written group assessment on readers V and content from last session (25 min)
  • Recap of last session

   Topics:

  • Documentary Instruments
  • Letter of Credit
  • Government support

Paper presentation - Group 4 (30 min + 10 min discussion):

(Alavi, 2016) - Mitigating the Risk of Fraud in Documentary Letters of Credit. Baltic Journal of European Studies, 6(1): 139-56.
5 30.10.2018

Topic: Financing International Operations 2: Financing FDI

Compulsory readers V:

(Buckley, 2012) - International Finance: A practical perspective; Chapter 27

(Damodaran, 2003) - Country Risk and Company Exposure: Theory and Practice. Journal of Applied Finance, 13(2): 63-76.

Classroom Agenda:

  • Written group assessment on readers VI and content from last session (25 min)
  • Recap of last session

   Topics:

  • Managing risks in FDI
  • Strategic finance
  • International borrowing
  • International capital markets
  • International diversification & operating flexibility
  • International asset pricing

Paper presentation - Group 5 (30 min + 10 min discussion):

(Bell & Rasheed, 2016) - Seeking Capital Abroad: Motivations, Process, and Suggestions for Success. Journal of Applied Corporate Finance, 28(1): 104-13.
6 06.11.2018

Topic: Valuation in an International Context

Agenda:

  • Final Exam (120 min)

The final exam is composed of questions from the group assignments. No supplementary materials allowed.
Last edited: 2018-06-20



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