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Corporate Financial Policy and Capital Structure

Corporate Financial Policy and Capital Structure

Code	13968
Year	1
Semester	S1
ECTS Credits	7,5
Workload	TP(30H)
Scientific area	Management
Entry requirements	n.a.
Mode of delivery	Face to face.
Learning outcomes	The overall objective of UC is to analyze the impact that financial decisions are taken for the various stakeholders of the company. i) Provide the students with analytical skills and decision-making in areas within the financial policy of companies, in general, and SMEs in particular. ii) Analyze the impact of financial decisions in the context of the capital structure and dividends decisions; iii) Identify the major theories of ownership and corporate governance; iv) Develop practices of research and for obtaining information; v) Developing autonomy in research, through the development of research, to be appreciated by students, teachers, and academic community in general, seeking the submission to conferences and journals.
Syllabus	I. INTRODUCTION 1.1 Developments in Financial Theory 1.2 Financial Policy of the Company. II. CAPITAL STRUCTURE DECISIONS 2.1 Perfect and imperfect Markets 2.2 Th Theorems of Modigliani and Miller 2.3 Theory of the static trade-off 2.4 Agency theory 2.5 Signalling Theory 2.6 Pecking Order Theory 2.7 Capital structure and corporate strategy 2.8 Other theories of capital structure 2.9 Empirical Evidence on capital structure III. LONG TERM FINANCING 3.1 Equity 3.2 Debt 3.3 Cost of Capital IV. DIVIDEND POLICY 4.1 Perfectly efficient markets and the irrelevance of dividend policy 4.2 Taxes on income and dividend policy 4.3 Signalling and Dividend Policy 4.4 Problems of agency and dividend policy 4.5 Empirical evidence on dividend policy V. THEORY OF OWNERSHIP AND CORPORATE GOVERNANCE
Main Bibliography	BODIE, Z. e MERTON, R. (2000) “Finance”, Prentice-Hall. BREALEY, R. A. e MYERS, S. C. (2008). Principles of Corporate Finance, 9ª edição. McGraw-Hill/Irwin. CONSTANTINIDES, G., HARRIS, M. e STULZ, R. (2003) “Corporate Finance”, Elsevier, North Holland. DAMODARAN, A. (2001) “Corporate Finance - Theory and Practice”, John Wikey and Sons Inc. GRINBLATT, M. e TITMAN, S. (2002) Financial Markets and Corporate Strategy, 2.ª Edição, Irving-McGraw-HILL. RAPPAPORT, A. (1999) Creating Shareholder Value: A Guide for Managers and Investors, Amazon. ROSS, S. A., WESTERFIELD, R. W., e JAFFE, J. (2004) Corporate Finance, 6ª Edição, Irwin/ McGraw-Hill. SHARPE, W. F.; GORDON J. A. e JEFFER, Y V. B. (2004) “Investments” 7th ed., Upper Saddle River, Prentice- Hall. Tirole, J. (2006) The Theory of Corporate Finance, Princeton University Press, New Jersey .
Teaching Methodologies and Assessment Criteria	The adopted method combines theoretical exposition with practical case solving, covering the framing, concepts, models, and techniques inherent to each of the subjects to be taught. In order to emphasize the practical implications of the exposed subjects, practical exercises will be performed, as well as the presentation of research work to be developed by the students. During semester will be defined as the themes of research work to be developed by doctoral students.
Language	Portuguese. Tutorial support is available in English.