International Corporate Finance Track

Transcription

1 International Corporate Finance Track TABLE OF CONTENTS International Economics and Business p. 2 Mergers & Acquisitions p. 4 Fixed Income p. 6 Analysis of Business Conditions & Forecasting p. 8 Financial Derivatives & Alternative Investment p. 10 Introductory to Econometrics for Finance p. 12 Corporate Governance p. 13 Ethics, Professional Standards p. 15 International Management Control p. 16 Financial Accounting, reporting and analysis 2 p. 17 Risk Management p. 19 Page 1

2 International Economics & Business PRÉSENTATION Le module Economics correspond aux attendus du CFA Level 1. Il sera organisé autour de 6 séances de 3 heures chacune. L économie est une connaissance générale centrale pour appréhender le milieu dans lequel les entreprises, les ménages et les investisseurs institutionnels doivent prendre des décisions. Dans l économie, on distingue plusieurs écoles, mais surtout on différencie 2 branches, que sont la macroéconomie et la microéconomie. Dans ce premier module, nous aborderons aussi bien les bases de la microéconomie que de la macroéconomie. OBJECTIFS Les objectifs de ce module sont les suivants : - Analyser la situation microéconomique de l environnement des affaires : demande, offre, comportement du consommateur, comportement de la firme, structures des marchés, - Analyser la situation macroéconomique de l environnement des affaires : le revenu national, les prix, la croissance, les cycles économiques, la politique monétaire et budgétaire, - Le contexte international : commerce international, flux de capitaux, taux de change, COMPETENCES DEVELOPPEES Microeconomics Macroeconomics International Context MODALITES PEDAGOGIQUES Les cours auront lieu en face-à-face en amphi. La présence est obligatoire. L objectif du cours est de répondre à vos interrogations et approfondir les notions abordées. En aucun cas, le face-à-face sera considéré comme un cours magistral. Des exemples et exercices viendront illustrer les différents points du cours. PLAN DES SEANCES Microeconomics Lecture obligatoire (faire une synthèse de 2 pages par lecture) : - Demand and Supply Analysis : Introduction - Demand and Supply Analysis : Consumer Demand Page 2

3 - Demand and Supply Analysis: The Firm - The Firm and Market Structures Macroeconomics Lecture obligatoire (faire une synthèse de 2 pages par lecture) : - Aggregate output, Prices and Economic Growth - Understanding Business Cycles - Monetary and Fiscal Policy International Context Lecture obligatoire (faire une synthèse de 2 pages par lecture) : - Investment Trade and Capital Flows - Currency Exchange Rates EVALUATION Le module Economics sera évalué de la manière suivante : - Contrôle continu (40%): o Lors de chacune des sessions, un travail de synthèse de document est demandé. 2 pages par document à synthétiser. Cela comptera pour 50% de la note de contrôle continu o Le travail se synthèse sera complété par les deux premiers CFA Training (50%) - Examen Final (60%) : le CFA training comprendra une partie Economics qui nous permettra de vous évaluer globalement. Tout travail non rendu lors de la séance ne sera pas corrigé et la note de 0 sur 20 sera automatiquement appliquée. La présence est obligatoire. Toute absence devra être justifiée auprès de l intervenant, selon les mêmes conditions que pour les années précédentes. Votre participation lors des cours vous permettra d obtenir un bonus de plus ou moins 2 points sur la note de contrôle continu. Un malus pourra être appliqué en cas de comportement non adéquat constaté par l intervenant (utilisation du téléphone portable, utilisation de l ordinateur à un autre usage que celui du cours, manque de discipline ). Page 3

4 Mergers and Acquisitions COURSE PRESENTATION The subject of mergers or acquisitions is unquestionably one of the topics in finance over the controversy. It is one of the objects that pay most of the chronic daily economic but also the academic literature of research in finance. What is a merger or an acquisition? What distinction is there between merger and acquisition? Do both types of operations carry the same economic logic? Do M&A transactions create financial value? The purpose of this seminar is to present a framework for analyzing these types of operations, far from polemics. The growth of a company can marry two distinct logics: internal growth vs external growth. Organic growth is aimed to create value through the use of resources and the mobilization of internal expertise in undertaking new productive capacities or commercial. Instead, external growth is to acquire existing capacities by taking control of another company, in whole or in part. These external growth operations are most often carried out through mergers and acquisitions. These operations can be analyzed in different ways, depending on the friendly or hostile character, their motives or their methods of implementation. From a financial standpoint, these operations can be analyzed as investment projects whose value should be assessed and search for the optimum financing mode. The leveraged transactions or LBO (Leveraged Buy-Out) satisfy this type of logic COURSE OBJECTIVES The aim of this course is to make students understand the economic institutional environment of M&A. This seminar aims also to present the methods, the strategies and the techniques used in the operations of M&A. LEARNING OBJECTIVES After this course, students will be able to: Implement the main tools used in the major investment banks Apply the best evaluation models to the each type of M&A operation TEACHING METHOD AND PEDAGOGY This class will split equally between theoretical framework and application exercises. Students are expected to actively participate to the class by asking questions and by expressing their critical point of view. Discussion on the different topics is encouraged. Students are expected to be present in class in time and have prepared readings and exercises. Page 4

5 EVALUATION AND ASSESSMENT Each student will be graded through: - MCQ and exercises (40%): Course #4 : MCQ and Exercises. If the student justifies his absence, a resit will be organized. - Exam (60%): 1h30 writing exam. COURSE OUTLINE Part 1 - General Introduction to M&A Part 2 The determinants of M&A Part 3 The process of M&A Planning, Integration and Implementation Part 4 How structuring a deal? Building a common vocabulary: mergers, acquisitions, divestitures and buyouts; The participants in the M&A Process; The market of M&A in Europe & Worldwide Motivations for M&A operations; Do M&A operations pay off? The task force: the team and the counselors; The main phases in a M&A process; The phase of due diligence; The process of negotiation The forms of acquisition vehicle; The forms of payment; The basic forms of acquisition; Live Business Case Study : - Acquisition - Merger - Partial transfer of assets Page 5

6 Fixed Income COURSE PRESENTATION This module corresponds to the part «Fixed Income: Basic concepts + Analysis and Valuation» of the CFA Level 1 program (Book 5). Basic concepts: Features of Debt Securities; risks associated with investing in bonds; overview of bond sectors and instruments; understanding yield spreads. Analysis and valuation: introduction to the valuation of debt securities; yield measures, spot rates, and forward rates; introduction to the measurement of interest rate risk. The course requires a good master of financial calculation methods. COURSE OBJECTIVES - Understanding the functioning of international debt markets - Knowing the debt products and mastering financial mechanisms - Understanding the parameters of debt securities portfolio management LEARNING OBJECTIVES After this course, students will be able to analyze financial risks associated with investments in bonds and will master financial calculations on bonds. TEACHING METHOD AND PEDAGOGY Students are expected to be present in class in time and have prepared readings (text + key concepts + concept checkers). The Professor will focus on the most important and difficult topics! Students are expected to actively participate to the class by asking questions and by expressing their critical point of view. Discussion on the different topics is encouraged. EVALUATION AND ASSESSMENT Each student will be graded through: - Continuous assessment (MCQ and/or exercises): 40 % - Final exam : 60 % Page 6

7 COURSE OUTLINE Features of Debt Securities Risks associated with investing in bonds Overview of bond sectors and instruments Understanding yield spreads Introduction to the valuation of debt securities Yield measures, spot rates, and forward rates Introduction to the measurement of interest rate risk Page 7

8 Analysis of Business Conditions & Forecasting COURSE WORKLOAD STATEMENT: Success in this 3 credit hour course is based on the expectation that students will spend, for each unit of credit, a minimum of 45 hours over the length of the course (normally 3 hours per unit per week with 1 of the hours used for class) for instruction and preparation/studying or course related activities for a total of 135 hours. GRADING: Assignments 20% Two Exams (3/29, 5/17) 40% Research Paper 40% Evaluation Criteria 1. Relevance and Organization (10%) 2. Writing and Explanations (20%) 3. Theory and Literature Survey (20%) 4. Technical Analysis: Accuracy (30%) 5. Technical Analysis: Level (20%) COURSE DESCRIPTION: This course is application-oriented. It s an intensive study on business conditions and forecasting methods. The lectures cover topics such as formulation of research questions, business environment and risk analysis, collection of time series and survey data, specification of models, applications of forecasting techniques, and interpretation and communication of the results. COURSE OUTLINE: 1. Business and Its Environment Economics, Politics, Law, and Ethics 2. Business Condition and Forecasting Methods Analysis of the Current Financial Crisis Forecasting Methods Basic Commands in EViews 7 (Rachel Wariara) 3. Analysis of Risk and Uncertainty Macro Risk Business Risk International Risk and Risk Sharing Page 8

9 4. Data Analysis and Graphical Presentation Cross-sectional Time series Survey 5. Review of Statistics and Econometrics with EViews Applications Classical Linear Regression Models Gujarati, Chapters 6, 7, and Model Specification and Diagnostic Tests Gujarati, Chapters 12, 13, and Trend Analysis and Forecasting Modeling Trend Smoothing Techniques Diebold, Chapters 4 and Qualitative Data, Business Seasonality and Modeling Gujarati, Chapter 10; Diebold, Chapter 6 9. Univariate Time Series Modeling MA, AR, and ARMA Diebold, Chapters 7, 8, 9 and Large Scale Models, VAR and Forecasting Gujarati, Chapter 15; Diebold, Chapter Evaluating and Selecting Models Diebold, Chapter Advanced Topics Modeling Long-run Relationships: Unit Roots, ECM, and Cointegration Modeling Volatility with ARCH, GARCH and MGARCH Model Page 9

10 Financial derivatives & Alternatives Investment COURSE PRESENTATION The course provides an overview of the structure and functioning of financial derivative market. It also introduces important financial derivatives such futures, options, swaps and their variants with focuses on pricing framework, trading strategies and risk management. The course also covers fast emerging alternative investment market giving an understanding of commodities, real estate, mutual funds, exchange traded funds, hedge funds, venture capital and private equity. It highlights the role of these alternative assets in the portfolio diversification process. COURSE OBJECTIVES The course aims at providing an insight into the working of financial derivatives market, pricing instruments and their use in strategy design. The course also aims at introducing different types of alternatives investments, which compete with capital market assets. The purpose is also to highlight the role of these alternative investments in asset allocation process. LEARNING OBJECTIVES On successful completion of the course, the students shall be able to understand: How financial derivatives market function and what are their linkages with the cash market How different financial derivatives are priced and how successful trading strategies can be formed for type of instrument Understand how derivatives instruments can be used for risk management. Understand important differences as well as linkages between alternative investment market and capital market Understand the role that alternative investment play in asset allocation framework TEACHING METHOD AND PEDAGOGY Face to face lectures involving structured presentations, problem solving and case studies Project study work Students are expected to actively participate to the class by asking questions and by expressing their critical point of view. Discussion on the different topics is encouraged. Students are expected to be present in class in time and have prepared readings and exercises. Page 10

11 EVALUATION AND ASSESSMENT The assessment shall comprise of three components: Concept Test of 20 marks involving 20 multiple choice questions. The objective is to test the conceptual knowledge and its applications to real life situations. Final examinations of 60 marks, comprising of short and long question answers and numerical problems. The objective is to test whether the students have acquired in-depth knowledge and possess writing skills on the subject as well as check their problem solving abilities. Project study (Group assignment) of 20 marks. Student shall prepare a group project report on specified topics and in a format provided by the faculty (resource person). COURSE OUTLINE Financial Derivatives Overview, Forward and Futures Contracts: Financial derivative market and instruments, concept of arbitrage; Forward and Futures market - Structure and trading mechanism, pricing models, trading strategies; risk management strategies; introduction to interest rate futures, stock index futures and exchange rate futures. Options Market: Types of options, pricing models, option payoffs, trading strategies and risk management, options on interest rates, stock indices, foreign exchange and futures, exotic options. Swaps Market: Interest rate and cross-currency swaps, options on swaps, trading strategies and risk management strategies. Alternative Investments Introduction and Commodities Market: Overview, Nature, type and role of alternative asset classes, global alternative investment market; Types of commodities, spot and derivative markets, price discovery, volatility spill-over and de-stabilization effects, commodities market indicators, regulatory framework Real Estate Investment: Commercial and housing property market, Valuation approaches, Real Estates Investment Trusts and Real Estate Mutual Fund, Real Estate Indices, Regulatory aspects Other Alternative Investments: Hedge Funds, private equity and soft assets-market overview, asset structure and strategies Page 11

12 Introductory to Econometrics for Finance PRÉSENTATION DU COURS Ce cours est une introduction aux techniques économétriques. L économétrie est une science permettant de tester les théories économiques. C est aussi une boîte à outils utilisée pour prévoir les valeurs futures de variables économiques et financières. OBJECTIFS DU COURS A l issue de ce cours, les étudiants devront être capables de : - Maitriser les principes de lé régression simple - Maîtriser les principes de la régression multiple - Utiliser les outils économétriques fondamentaux pour la résolution de problème financier, tel que l évaluation d actif. MODALITES PEDAGOGIQUES Les étudiants ont l obligation d assister à tous les cours. Un manquement à cette règle de principe lors des séances où se dérouleront le contrôle continu (en dehors d événement justifié par un certificat médical ou justifié par l administration) sera sanctionné d un 0 pour l évaluation du contrôle continu. Les cours commencent à l heure et une fois la procédure d appel terminée, les étudiants se verront refuser l accès en cours. EVALUATION L évaluation de ce cours est basée sur un contrôle continu. Des exercices seront mis en ligne avec obligation de les restituer à la séance suivante : Liste des exercices : Measuring Stock Market Risk U.S. Department of Transportation Consumer Research, Inc. PLAN DES SÉANCES Le modèle de regression linéaire simple Etude de Cas 1 : Epargne, Investissement et Mobilité du Capital Le modèle de régression linéaire multiple Etude de Cas 2 : Convergence PIB par tête des Economies Européennes Etude de Cas 3 : Les Politiques Monétaires Européennes et la règle de Taylor Page 12

13 Corporate Governance PRÉSENTATION DU COURS La gouvernance d entreprise recouvre à la fois la structure et les procédures de direction d une entreprise qui visent à atteindre une plus grande performance. La gouvernance d entreprise est donc essentielle au bon management des entreprises et il est important de comprendre l ensemble des enjeux organisationnels et de connaître l ensemble des parties prenantes d une entreprise. OBJECTIFS DU COURS Connaître les acteurs de la gouvernance d entreprise Connaître les enjeux organisationnels d une entreprise A l issue de ce cours, les étudiants devront être capables de : Comprendre les mécanismes de gouvernance d entreprise Comprendre l interaction entre les décisions financières et la gouvernance d entreprise MODALITES PEDAGOGIQUES Chaque séance sera partagée en deux parties : une partie sera consacrée au cours magistral en face à face ; et une seconde partie consacrée aux présentations des élèves. Les étudiants ont l obligation d assister à tous les cours. Un manquement à cette règle de principe lors des séances où se dérouleront le contrôle continu (en dehors d événement justifié par un certificat médical ou justifié par l administration) sera sanctionné d un 0 pour l évaluation du contrôle continu. Les cours commencent à l heure et une fois la procédure d appel terminée, les étudiants se verront refuser l accès en cours. EVALUATION L évaluation de ce cours est basée à la fois sur un contrôle continu et sur un contrôle final. Elle se décompose comme suit : Les étudiants seront amenés à travailler par groupe sur la préparation d exposés. Ceux-ci feront l objet d une restitution écrite et orale. Le document écrit, la prestation orale ainsi que le support de présentation seront notés globalement pour chaque exposé et cette note constituera 40% de la note finale du cours Corporate Governance. Page 13

14 L examen final portera sur l ensemble des connaissances théoriques et pratiques du cours. La note obtenue comptera pour 60% dans la note finale du cours Corporate Governance. PLAN DES SÉANCES Qu est-ce que la gouvernance? Les acteurs de la gouvernance d entreprise Les organes et les mécanismes de gouvernance Les modes de gouvernance des entreprises Page 14

15 Ethics, Professional Standards PRESENTATION DU COURS Ce cours est dispensé dans le cadre de la préparation à l examen du CFA Level I. Cette partie, qui représente 15% de la note finale du Level I, revêt une importance bien audelà de la simple préparation à un examen, pour de futurs professionnels des marchés qui évolueront dans un contexte de réglementation des marchés croissant. OBJECTIFS DU COURS A l issue de ce cours, les étudiants devront être capables de : - Présenter l examen du CFA Level I «Ethical and Professional Standards»(15% du Level I). - De façon plus générale, de devenir des professionnels agissant de façon intègre, capables d appréhender de nouvelles situations professionnelles où l éthique serait en jeu. MODALITES PEDAGOGIQUES Les étudiants ont l obligation d assister à tous les cours. Un manquement à cette règle de principe lors des séances où se dérouleront le contrôle continu (en dehors d événement justifié par un certificat médical ou justifié par l administration) sera sanctionné d un 0 pour l évaluation du contrôle continu. Les cours commencent à l heure et une fois la procédure d appel terminée, les étudiants se verront refuser l accès en cours. EVALUATION L évaluation de ce cours est basée à la fois sur un contrôle continu et sur un contrôle final. Contrôle continu L examen final portera sur l ensemble des connaissances théoriques et pratiques du cours. PLAN DES SÉANCES Professionalism Integrity of Capital Markets Duties to Clients Duties to Employers Investment Analysis, Recommendations, and Actions Conflicts of Interest Responsabilities as a CFA Institute Member or Candidate Global investment Performance Standards (GIPS) TEST (contrôle continu) Page 15

16 International Management Control COMING SOON Page 16

17 Financial Accounting, Reporting and Analysis 2 COURSE OBJECTIVES The class focuses on the understanding and the analysis of the three financial statements published by companies, i.e. income statements, balance sheet and cash flow statements. This analysis will be implemented under the external financial analyst point of view. A special focus will be made on some challenging components of financial statements such as Inventory, Long term assets, long term liabilities and income taxes. LEARNING OBJECTIVES After having attended this course, students will be able to satisfy the following learning outcomes, listed by main topics. Know how to implement a financial analysis and judge the financial reporting quality of a company, Describe the different inventory cost flow methods, understand how to calculate COGS, ending inventory and gross profit under each of these methods, understand the effects of each method on a firm s ratios, evaluate firm s effectiveness in managing its inventory. Understand the effects of and issues concerning capitalization versus immediate expensing of various costs regarding long-term assets, describe the different depreciation methods and the effect of the choice of a depreciation method on the income statement, describe the amortization methods, determine if an asset is impaired, being familiar with the revaluation (fair value) model under IFRS and the disclosure requirements for financial reporting. Being aware of the income taxes terminology that relates to each financial reporting and tax reporting standards. Calculate taxes payable, tax expense, deferred tax liabilities and assets and make the necessary adjustments for analytical purposes. Understand the financial statement effects of some long-term liabilities such as issuing a bond at par, at a discount or at a premium, the classification of a lease as either an operating of finance lease affects the balance sheet, income statement and cash flow statement from both the lessee and lessor perspectives, distinguish between the two types of pension plans and determine the economic status of a defined benefit plan. Evaluate a firm s solvency using the various leverage and coverage ratios. TEACHING METHODS AND PEDAGOGY This course will be split into 4 face-to-face sessions of 3 hours each. Students are expected to be in class on time. After the calling-up of the class, students will not be allowed to attend the class. Page 17

18 Personal computer is not allowed unless specified by the lecturer. The use of mobile phone is forbidden. A final session will be dedicated to the financial analysis project presentation by students teams. EVALUATION AND ASSESSMENT The course Financial Reporting & Analysis 1 is a pre-requisite to this class. Students that did not attend this course are invited to look at the chapters of the referenced books to get the required knowledge. Each session has to be prepared by students through assigned readings. The course will not go through the whole topics included into readings especially those that have been taught in previous courses. However, they are supposed to be learned by students. Students will have to implement the financial analysis of a quoted company (see Financial Analysis Project document on ecampus for details). This project will account for 60% of the final grade of which 60% for the writing report and 40% for the final presentation. The final exam will account for 40% of the final grade. It will take the form of a MCQ based on the CFA exam format. COURSE OUTLINE Financial analysis methodology. Inventory & LT Assets Income taxes LT Liabilities & Solvency Project presentations Financial Analysis Project presentation, framework for analysis, evaluating financial reporting quality, Recognition methods, impact of the recognition method on ratios and profitability Rules, deferred tax assets and liabilities. Bonds recognition (at issue date, at redemption date), employee pension liabilities, lease contracts. Page 18

19 Risk Management COMING SOON Page 19