Learning objectives
The course aims to deepen the understanding of criteria and methodologies for the analysis of financial equilibrium. Students will acquire skills and abilities to identify problems and make appropriate choices in the field of firm financial management. 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:
a. the knowledge required to understand and describe in detail the concept of financial equilibrium, as a condition for firm competitiveness on capital markets, and also knowledge of methodologies for the analysis and monitoring of financial management.
b. the knowledge of financial theory guidelines for the optimization of financial choices in the use of capital and the ability to apply methodologies for the analysis of performance in terms of value creation;
c. the ability to plan and monitor firm growth paths and critically assess financial sustainability using independent judgment;
d. communication skills with company and bank management in the analysis of financial statements and business plans for the evaluation of creditworthiness;
e. the knowledge of working methods for financial analysis and the ability to critically evaluate, with independent judgment, the degree of potential stability of firms in relation to adverse dynamics of the economic cycle, market conditions and the resulting degree of creditworthiness.
Prerequisites
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Course unit content
• The assessment of company financial equilibrium in the framework of the Basel Accords: bank capital requirements for credit risk, credit rating and its impact on enterprise financial management
• Financial analysis. Historical financial analysis: balance sheet reclassification, balance sheet ratios, cash flows analysis. Financial forecasting: financial plans and their construction
• Corporate valuation: balance sheet-based methods, income statement-based methods, mixed methods, cash flow discounting-based methods. Metrics of value created by management, risk measurement and cost of capital
• Financial modeling by Excel
• Financing operations: pool loans, corporate bonds, mezzanine finance
• Equity operations: venture capital, private equity, initial public offering, crowfunding
• Extraordinary finance operations: merger and acquisition, leverage buyout, management buyout, project finance, spin off
• Corporate crisis and debt restructuring
Full programme
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Bibliography
Analisi Finanziaria, Mc GrawHill Education (2018), Regalli, Soana, Tagliavini (edited by), chapters 1-11.
Corporate & Investment Banking, Franco Angeli (2017), Monferrà, Cotugno, Mazzù (edited by), chapters 3 and 7-15.
Online course materials.
Teaching methods
• Knowledge and understanding: lectures
• Applying knowledge and understanding: exercises
• Making judgments: during this module, students will be encouraged to
identify strengths and weaknesses of company financial structure
• Learning skills: for each topic the main problem to be solved will be
introduced, and then the solutions adopted will be critically analyzed
• Communication skills: the teacher will illustrate
the meaning of the most common terms used by the financial
community.
Assessment methods and criteria
Written test. During the written test it is not allowed to consult any educational material or electronic device, except for the calculator.
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. Each question will be assessed 1 point.
The acquisition of basic knowledge of institutions, methodologies, theories and concepts will be assessed with 3 open-ended questions. Each question will be assessed 3 point.
The acquisition of the ability to apply methods of analysis methods will be assessed through two exercises. Each exercise will be assessed 7 points.
The acquisition of learning skills and autonomy of judgment will be evaluated with 2 open-ended questions. Each question will be assessed 3 point.
The "laude" will be attributed to the achievement of an evaluation of at least 31/32 points.
The results of the written exam are published on the ESSE3 portal and students can see the results of the tests in a planned meeting with the teacher.
Other information
The laboratory teaching unit on Excel financial modelling involves an evaluation through the development of a new model. This teaching unit comprises 4 hours of development of basic skills on the use of Excel, 4 hours on modelling for the analysis of financial performance, 4 hours on financial planning modelling, and 4 hours on modelling for the evaluation of financial transactions. The attendance of this laboratory unit is a substitute for the study of chapters 4-5-6-7 of the volume on financial analysis.
2030 agenda goals for sustainable development
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