Learning objectives
The course aims to deepen the understanding of the criteria and methodologies for the analysis of financial balance and solvency. Students will acquire skills and abilities to identify problems and make appropriate choices in the financial management of enterprises. The theme is contextualized within the institutional framework of the Basel Accords which altered bank-firm relationships and implied incentives to raise the quality of credit relations.
At the end of the course students will have acquired
1) the knowledge required to understand and describe in detail the concept of financial equilibrium as a condition for firm competitiveness on capital markets;
2) knowledge of methodologies for the analysis and monitoring of financial management;
3) knowledge of working methods for the analysis of the financial profile of company management and how to critically evaluate, with independent judgment, the degree of potential stability of firms in relation to adverse dynamics of the economic cycle and market conditions and the resulting degree of creditworthiness;
4) the ability to plan and monitor growth paths and critically assessing financial sustainability using independent judgment;
5) knowledge of financial theory guidelines for the optimization of choice in the use of capital and the ability to apply methodologies for the analysis of performance in terms of value creation;
6) communication skills with company and bank management in the analysis of financial statements and business plans for the evaluation of creditworthiness.
Prerequisites
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Course unit content
1) The assessment of company financial equilibrium in the framework of the Basel Accords. 1.1) The capital requirements of banks for credit risk. 1.2) Rating and the impact on the financial management of enterprises.
2) Financial analysis. 2.1) Balance sheet ratios; cash flows analysis. 2.2) Company growth and cash flows dynamics; financially sustainable development; financial planning. 2.3) The measurement and planning of value: metrics of the value created by management; introduction to risk; the cost of capital; investments evaluation; value of shares and implied performance expectations.
Full programme
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Bibliography
Various Authors, L’equilibrio finanziario (ed. E. Pavarani), McGraw Hill, 2006, Chapters: 1 - 2 - 3 - 5 - 6 (excluding 6.6) - 7-8
Various Authors, Pianificazione Finanziaria (ed. E. Pavarani and G. Tagliavini), McGraw Hill, 2006, Chapters: 4 - 5 - 6 - 7.4 - 9 (except 9.7 and appendices) - 10 (excluding appendices) - 11 (excluding 11.4.2) - 12 - 13 (excluding 13.4 and 13.5)
Teaching methods
Acquisition of knowledge: lectures.
Acquisition of the ability to apply the methodology of analysis: exercises.
Acquisition of judgment: lessons stimulate capacity for critical evaluation of potential and limits of the different methods of analysis.
Developing capacities for learning: lessons present problematic situations and stimulate critical focus search for appropriate solutions.
Assessment methods and criteria
Written examination.
The acquisition of the ability to communicate with appropriate technical vocabulary will be assessed through 3 closed-ended questions about the meaning of terms used in the field of corporate finance.
The acquisition of basic knowledge of institutions, methodologies, theories and concepts will be assessed with 3 closed-ended questions.
The acquisition of the ability to apply methods of analysis methods will be assessed through two exercises.
The acquisition of learning skills and autonomy of judgment will be evaluated with 2 open-ended questions.
Other information
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