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Setup MFM 2010winter Finance
Setup MFM 2010winter Finance
CEMS
Elvira Sojli
All these issues bring to bear in the decision making process of a CFO while
handling the tasks of funding, evaluation, and risk. The CFO is required to
acquire or have knowledge about international financial markets (equity, bond,
and currency markets, as well as the markets for derivatives such as options
and futures).
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practically manage risk better using an online trading game (more details will
be given in Lecture 1).
Course objectives
After this course you should understand the key elements of corporate finance
and their applications in an international setting. You should have gained
knowledge about the available options of CFOs in international financial
markets. You should know and be able to apply the theory of financing and
investing decisions in an international context. You should be able to set up a
risk management program for a firm. You will learn about the before-
mentioned topics through theory and real-life case studies. You will learn to
read articles in finance journals, which allows you to follow future
developments in the field.
The literature list below is a guide to the materials that will be used and
discussed during the lectures. You are required to know and understand all the
material in the lectures, while the extent to which you read the articles is up to
you. All readings will be referenced at the end of the lecture notes and can be
found via the electronic library.
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1. Stulz, R. 2007. The limits of financial globalization. Journal of Applied
Corporate Finance 19, 8-16.
2. Sarno, L. 2008. Purchasing power parity. In Durlauf, Steven N. and
Lawrence E. Blume, (eds.), The New Palgrave Dictionary of Economics,
2nd revised edition (online), Palgrave MacMillan, London, 2008.
3. Pritamani, M., Shome, D., and Singal, V. 2004. Foreign exchange
exposure of exporting and importing firms. Journal of Applied Corporate
Finance 17, 87-94.
4. Nocco, B and Stulz, R. 2006. Enterprise risk management: theory and
practice. Journal of Applied Corporate Finance 18, 8-21.
5. Stulz, R. 1996. Rethinking risk management. Journal of Applied
Corporate Finance 8, 8-24.
6. Smithson, C. and Simkins, B. 2005. Does risk management add value?
A survey of the evidence. Journal of Applied Corporate Finance 17, 8-17.
7. Tufano, P. 1996. Who manages risk? An empirical examination of risk
management practices in the gold mining industry. Journal of Finance
51, 1097-1137.
8. Carter, D., Rogers, D. and Simkins, B. 2006. Hedging and Value in the
U.S. airline industry. Journal of Applied Corporate Finance 18, 8-21.
9. Brown, G. 2001. Managing foreign exchange risk with derivatives.
Journal of Financial Economics 60, 401-448.
10. Karolyi, A. 2006. The World of cross-listings and cross-listings of the
world: challenging conventional wisdom. Review of Finance 10, 99-152.
11. Gozzi, J., Levine, R., Schmukler, S. 2008. Internationalization and the
evolution of corporate valuation. Journal of Financial Economics 88, 607-
632.
12. Brunnerneier, M. 2009. Deciphering the liquidity and credit crunch
2007-2008. Journal of Economic Perspectives 23, 77-100.
13. Gorton, B. 2008. The subprime panic.
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1276047