2021-2022 FE

The course analyzes the nature of the firm, and the role of corporate governance and executive compensation in economic organizations. Special attention is paid to analyzing issues related to ownership structure, corporate governance, corporate boards, and executive compensation. Topics covered include the nature of the firm, ownership structure, corporate board structure, executive compensation, and etc.

Financial modeling expertise is of paramount importance to financial professionals, academics and students. Excel and its embedded Visual Basic for Applications (VBA) programming language are therefore preferred tools for them, because with less programming skills complex financial and business models can be developed, solved or simulated therein. This course gives introduction to the Excel and programming techniques of VBA language, and then focuses on the implementation of techniques and financial models (such as data simulation, portfolio optimization, general asset pricing, option pricing, risk management, and corporate finance). The course serves to bridge the gap between financial theory and its implementation.

Special focus areas are long-term capital structure and dividend policy decisions, as well as the effect of agency costs and asymmetric information on corporate financial policy. Managing working capital, leasing decisions and financial consequences of mergers and acquisitions are other important topics. Interactions between corporate financial policy and governance are also introduced.

The main objective of the course is to provide deeper understanding of various advanced topics in asset pricing and corporate finance. Most of these topics will be theoretical in nature, but some relevant empirical analyses will also be discussed. Some of the major issues that will be covered include utility specifications, analysis of optimal portfolio/consumption choices under uncertainty, multifactor models, and other asset pricing models. We will also look more in depth into corporate finance theory, especially capital market efficiency, agency theory, and capital structure. Some special topics related to option pricing, credit risk, political uncertainty, and new financial technologies can also be discussed.

This course covers recent developments in the area of financial innovation (FINTECH), such as Blockchain, digital currencies, peer-to-peer method of identifying ownership, and smart contracts. Its goal is to analyze the emergence of Blockchain and related innovations as highly disruptive technologies for the financial industry, business laws, accounting and monetary economics (central banking).

To fully understand the implications of such technologies, we will cover various related topics such as the nature of money, legacy payment and banking, basics of crypto technology, digital currency systems, peer-to-peer transactions, governance and regulation of emerging technologies, double entry bookkeeping, and financial exchanges. We will also focus on several digital currencies, their “intrinsic value,” the reasons for their recent popularity, and the microstructure of their trading. Finally, we will survey various ventures that begun to capitalize on these innovations.

To enhance students’ understanding of the most recent and most promising financial innovations that will change the nature of the professional jobs that would be available in the future for students majoring in finance, accounting, and other business areas. The course also intends to create a bridge between business, law, and computer science. Students majoring in these areas would be equipped with a basic knowledge in each other’s fields, which should enhance the quality of their communications after entry into their corresponding careers.