• Offered by Rsch Sch of Finance, Actuarial Studies & App Stats
  • ANU College ANU College of Business and Economics
  • Course subject Financial Management
  • Areas of interest Finance
  • Academic career PGRD
  • Course convener
    • Dr Kentaro Asai
  • Mode of delivery In Person
  • Offered in Second Semester 2021
    See Future Offerings

This course provides an overview of modern corporate finance. The growth of corporate finance has been spectacular since Modigliani and Miller developed the capital-structure irrelevance proposition in 1958. After reviewing Modigliani and Miller (1958), we study the optimal capital structure under the presence of various frictions in which capital structure affects firm value. We cover the static trade-off theory, agency problem, principal-agent model, mechanism design approach of capital structure, and incomplete contracts. In addition, we cover the literature on investment and banking. Lastly, we cover modern empirical methods to test various hypotheses in corporate finance. In particular, we focus on quasi-experimental and structural approaches. 

Learning Outcomes

Upon successful completion, students will have the knowledge and skills to:

  1. Discuss the main theoretical and empirical methods of modern corporate finance;
  2. Critically review previous literature in corporate finance;
  3. Derive testable hypotheses in corporate finance and methods to test them; and
  4. Communicate in detail various topics on modern corporate finance to a diverse audience

Indicative Assessment

  1. Typical assessment may include, but is not restricted to: assignments, presentations and other assessment as appropriate (100) [LO 1,2,3,4]

The ANU uses Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. While the use of Turnitin is not mandatory, the ANU highly recommends Turnitin is used by both teaching staff and students. For additional information regarding Turnitin please visit the ANU Online website.

Workload

Students are expected to commit 130 hours of work in completing this course. This includes time spent in scheduled classes and self-directed study time.

Inherent Requirements

Not applicable

Requisite and Incompatibility

To be eligible to enroll in the course, students must be enrolled in an RSFAS or RSE PhD program and have successfully completed undergraduate studies in Investments or its equivalent at a recognized academic institution. Masters students in Finance with a GPA of 6.5 who have completed FINM7008, FINM7007 and FINM7041 may also apply to enroll in the course. This course will be a departmental consent enrollment course.

You will need to contact the Rsch Sch of Finance, Actuarial Studies & App Stats to request a permission code to enrol in this course.

Prescribed Texts

Information about the prescribed textbook will be available via the Class Summary.

Assumed Knowledge

Students will require a solid background in finance, microeconomics, and econometrics.

Fees

Tuition fees are for the academic year indicated at the top of the page.  

If you are a domestic graduate coursework or international student you will be required to pay tuition fees. Tuition fees are indexed annually. Further information for domestic and international students about tuition and other fees can be found at Fees.

Student Contribution Band:
3
Unit value:
6 units

If you are an undergraduate student and have been offered a Commonwealth supported place, your fees are set by the Australian Government for each course. At ANU 1 EFTSL is 48 units (normally 8 x 6-unit courses). You can find your student contribution amount for each course at Fees.  Where there is a unit range displayed for this course, not all unit options below may be available.

Units EFTSL
6.00 0.12500
Note: Please note that fee information is for current year only.

Offerings, Dates and Class Summary Links

The list of offerings for future years is indicative only.
Class summaries, if available, can be accessed by clicking on the View link for the relevant class number.

Second Semester

Class number Class start date Last day to enrol Census date Class end date Mode Of Delivery Class Summary
5979 26 Jul 2021 02 Aug 2021 31 Aug 2021 29 Oct 2021 In Person N/A

Responsible Officer: Registrar, Student Administration / Page Contact: Website Administrator / Frequently Asked Questions