Course Overview

This course helps understand, thanks to theoretical models, how firms
structure the way they finance their development, as well as their
relationships with diverse stakeholders: shareholders, banks,
corporate ventures, and other lenders, etc.

Learning Achievement

Competence

Course prerequisites

Microeconomics 1st year and 2nd year

Grading Philosophy

Written

Course schedule

The course focuses on the complex web of incentives created by
financial claims and the impact it has on entrepreneurship and access
to credit and financing, as well as on the profitability of firms. 
It draws on the literature of industrial organization and contracts
theory, and will mostly use theoretical models. 

It will in particular study (time permitting):

- The role of lenders in screening projects and monitoring
performance,  - The choice between equity and debt,  - The impact
of the capital structure on competition, market power and
profitability,  - The impact of legal rules, concerning for instance
debt priority,  - And topics related to recent real-life examples.

Course type

Lecture course

Online Course Requirement

Instructor

Other information

REFERENCES BIBLIOGRAPHY : 
- Tirole, Jean - The Theory of Corporate Finance, Princeton University
Press 

KEY WORDS : Corporate finance, Entrepreneurship, Debt, Equity 

Duration: 17.5 hours

Language of instruction: English

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