Course teached as: B028629 - MOD.II - FIRMS' FINANCING AND FINANCIAL MARKETS Second Cycle Degree in ECONOMICS AND DEVELOPMENT
The course aims to provide an overview of corporate funding strategies. The financial decisions of entrepreneurial firms at various phases of their life cycle will be examined, and the advantages and disadvantages of various sources of financing will be compared. The course also focuses on Innovative Finance, Impact Investing, and Venture Philanthropy.
Textbook: Saunders A., Cornett M. (2019), Financial Markets and Istitutions. McGraw-Hill, edition: 7. Chapters: 3, 4, 5, 6, 8, 16.
Other study material will be communicated by the teacher.
The course has the following objectives:
- to strengthen the knowledge about financial system, role of Central Banks and monetary policy in affecting the financial markets, theory of financial intermediations and market efficiency;
- to strengthen the skills associated with the comprehension of the firm funding strategies, distinguishing between market funding and bank debt;
- to provide with financial instruments to analyze the innovative forms of finance available to social firms, via venture capital philanthropy.
Suggested: fundamentals of financial intermediaries
The course is made up of lectures and debates and resolutions of case studies. Furthermore, seminars and project works are planned.
Type of Assessment
For students who attend lessons: Written exam (open questions and multiple choices questions) + project work.
For those who do not attend lessons: written exam (open questions and multiple choices questions).
The course is structured in the following parts:
a) The first part focuses on the financial system in general, analyzing the role of Central Banks and the monetary policy in affecting the financial markets, and then tackle the issues related to the theory of financial intermediation and market efficiency.
b) The second part of the course focuses on the firm funding strategies, distinguishing between market funding and bank debt. After analyzing the company life cycle, the course studies in deep the stock and the bond market: how they work and what they are for; the role of investment banks in the IPO operation and in the issue of bonds.
d) The last part of the course addresses topics related to Social Innovative Finance, impact investing and venture capital philanthropy, private equity and venture capital.