Syllabus

Title
1859 ExInt: International Corporate Finance (Gruppe 2)
Instructors
Assoz.Prof. PD Dr. Jakob Müllner
Contact details
masterexint@wu.ac.at
Type
PI
Weekly hours
2
Language of instruction
Englisch
Registration
09/18/19 to 09/27/19
Registration via LPIS
Notes to the course
Subject(s) Master Programs
International Corporate Finance
Dates
Day Date Time Room
Tuesday 10/29/19 02:00 PM - 06:00 PM D1.1.078
Tuesday 11/05/19 02:00 PM - 06:00 PM EA.5.044
Tuesday 11/12/19 02:00 PM - 06:00 PM TC.4.12
Tuesday 11/19/19 02:00 PM - 06:00 PM D1.1.078
Tuesday 11/26/19 02:00 PM - 06:00 PM TC.4.12
Tuesday 12/03/19 02:00 PM - 04:30 PM TC.4.12

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 29.10.2019

14:00-18:00 Uhr

Topic:        International Corporate Finance and Internationalization

Compulsory readers class I:
   Intro to financial markets:
   Bekaert and Hodrick (2017) -  International financial management: Cambridge University Press. - Chapters 1,2,3
  

   Internationalization theories:
   Buckley (2012) International Finance; A practical perspective: Pearson Higher Ed. - Chapter 20

   Reference for basics of corporate finance (not compulsory)
   Brealey, Myers, and Allen (2017) Principles of corporate finance. 9. ed., internat. student ed. ed. Boston, Mass. [u.a.]: McGraw-Hill Irwin. -  Chapters   1,2,3,4,5,6

Classroom Agenda:
Administrative regards & assignment to group presentations
Written group assessment on readers (25 min)

Lecture Topics:
•    International Financial Markets
•    Firms‘ Internationalization Process & Finance
•    Basics of Corporate Finance I
2 05.11.2019

14:00-18:00 Uhr

Topic: Export & Trade Finance


Compulsory reader II:    
   Export & Trade Finance:
   Bekaert and Hodrick (2017) -  International financial management: Cambridge University Press. - Chapters 18
  

   International Debt & Equity:
   Bekaert and Hodrick (2017) -  International financial management: Cambridge University Press. - Chapters 11, 12

   Further reference materials (not compulsory)
   Bhogal & Trivedi (2007) International Trade Finance: A Pragmatic Approach: Springer.

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

Lecture Topics:
•    Basic Corporate Finance II
•    Documentary Instruments
•    Letter of Credit
•    Government support

Paper presentation - Group 1 (30 minutes + 10 minutes discussion):
Mian & Smith (1992) - Accounts receivable management policy - Theory and evidence. Journal of Finance, 47(1): 169-200..
3 12.11.2019

14:00-18:00 Uhr

Topic:        Foreign Exchange Risk Management    

Compulsory reader IV:
   Hedging and measuring transaction exchange risk:
   Bekaert and Hodrick (2017) -  International financial management: Cambridge University Press. - Chapters 17,19,20

   Managing and measuring economic exchange risk:
   Bekaert and Hodrick (2017) -  International financial management: Cambridge University Press. - Chapters 9

Classroom Agenda:
•    Written group assessment on readers (25 min)
•    Recap of last session

Lecture Topics:
•    Exchange rate fundamentals
•    Hedging of exchange rate risk
•    Hedging Instruments

Paper presentation - Group 2 (30 minutes + 10 minutes discussion):

Brown, G. W. 2001. Managing foreign exchange risk with derivatives. Journal of Financial Economics, 60(2): 401-48.
4 19.11.2019

14:00-18:00 Uhr

Topic:        Portfolios, CAPM & International Investment Appraisal

Compulsory reader IV:

   International capital budgeting:
   Bekaert and Hodrick (2017) -  International financial management: Cambridge University Press. - Chapters 15,16

   Capital Asset Pricing Model (CAPM):
   Bekaert and Hodrick (2017) -  International financial management: Cambridge University Press. - Chapters 7

   Portfolio Theory:
   Bekaert and Hodrick (2017) -  International financial management: Cambridge University Press. - Chapters 13

   Further reference materials (not compulsory)
   Brealey, Myers, and Allen (2017) Principles of corporate finance. 9. ed., internat. student ed. ed. Boston, Mass. [u.a.]: McGraw-Hill Irwin. -  Chapters   7,8,9

Classroom Agenda:
•    Written group assessment on readers (25 min)
•    Recap of last session


Lecture Topics:
•    Basics of Diversification and Portfolio Investing
•    CAPM Model
•    Cost of Capital and Capital Structure Theories
•    Valuation of Multinational Investments

Paper presentation – Group 3 (30 minutes + 10 minutes discussion):
Reeb, D. M., Kwok, C. C. Y., & Baek, H. Y. 1998. Systematic risk of the multinational corporation. Journal of International Business Studies, 29(2): 263-79.
5 26.11.2019

14:00-18:00 Uhr

Topic:        Capital Structure and Strategic Finance


Compulsory reader V:
   Capital Structure Theories:
   Brealey, Myers, and Allen (2017) Principles of corporate finance. 9. ed., internat. student ed. ed. Boston, Mass. [u.a.]: McGraw-Hill Irwin. -  Chapters   18
   Butler (2016) - Multinational Finance: Evaluating the Opportunities, Costs, and Risks of Multinational Operations. Chapter 14

   Country risk:
    Bekaert and Hodrick (2017) -  International financial management: Cambridge University Press. - Chapters 14

Classroom Agenda:
•    Written group assessment on reader VI and contents from last session (25 minutes)
•    Recap of last session


Lecture Topics:
•    Strategic Finance
•    Cross-listing
•    M&A
•    Project Finance
•    International diversification & operating flexibility

Paper presentation – Group 4 (30 minutes + 10 minutes discussion):
Reeb, D. M., Kwok, C. C. Y., & Baek, H. Y. 1998. Systematic risk of the multinational corporation. Journal of International Business Studies, 29(2): 263-79.
6 03.12.2019

14:00-16:30 Uhr

Final Exam (120 min)

The final exam is composed of questions from the group assignments. No supplementary materials allowed.
Last edited: 2019-09-11



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