Corporate Financial Restructuring

Faculteit Economie en Bedrijfskunde
Jaar 2018/19
Vakcode EBB088A05
Vaknaam Corporate Financial Restructuring
Niveau(s) bachelor, uitwisseling
Voertaal Engels
Periode semester I b
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Uitgebreide vaknaam Corporate Financial Restructuring
Leerdoelen Upon completion of the course the student is able to:
1. Recognize the importance of application of discounted cash flow valuation methodology.
2. Recognize the multi-stage character of M&As and other corporate restructuring activities.
3. Discuss, based on empirical examination, the relevance of theoretical predictions about restructuring activities.
4. Discuss risks and potential problems in choosing alternative restructuring activities.
5. Discuss the challenges to value realization through restructuring strategies.
6. Analyse empirical evidence regarding the impact of restructuring activities on the firm value.
7. Examine value creation of a real life example of a restricting activity to apply underlying financial theories in a written assignment.
8. Present underlying theories and empirical analyses related to the case of a restructuring activity.
Omschrijving Corporate finance assumes that managerial actions on corporate strategies increase market value or shareholders’ wealth. Corporations implement several strategies for financial restructuring. Merger and acquisitions (M&As) and diversification are growth strategies, a divestiture is a downsizing strategy, and leveraged buyouts or going private are strategies to change ownership. M&As, in particular, are worldwide common strategies estimated to be worth trillions of US dollars. Therefore, they can have a considerable impact on both domestic and global economies. Interestingly, empirical studies have found results that those strategies do not always create value. It is clear that corporate restructuring activities occur in highly complex environments where strategies provide unique opportunities with considerable risk. This course deals with the causes and consequences of those complex activities on creating value. Students are expected to understand the theoretical foundations that explain the reason as well as the observed or real effects of financial restructuring activities on corporate value and performance. Students are required to work in teams to prepare presentations of research papers and case studies and also to write a team paper about their analysis on value creation of a real life example of M&A or restructuring activities.
Uren per week 4
Onderwijsvorm gecombineerde hoor-/werkcolleges, zelfstudie
Toetsvorm opdracht(en), presentatie(s), schriftelijk tentamen met meerkeuzevragen, schriftelijk tentamen met open vragen
(Presentations will be individual and assignments will be group tasks)
Vaksoort bachelor
Coördinator dr. H. Gonenc
Docent(en) dr. H. Gonenc ,dr. N. Selmane
Verplichte literatuur
Titel Auteur ISBN Prijs
Corporate Financial Restructuring, Custom for University Groningen, Wiley. Gaughan, P.A. ca. €  40,00
Research articles for which a list will be prepared by the instructor Various
Entreevoorwaarden The course assumes that the students are familiar with the main finance, statistics and econometrics concepts and methodologies typically taught during the first and second years of the BSc E&BE.
Opmerkingen Secretary: Ellie Jelsema, tel. +31 (0)50 3633685, e-mail, room 5411.0836.
Opgenomen in
Opleiding Jaar Periode Type
BSc Econometrics and Operations Research/EOR  (keuzevakken BSc EOR) 3 semester I b keuze
BSc Economics and Business Economics/E&BE  (minor E&BE) 3 semester I b keuze
Courses open to Exchange Students (BSc)  ( Courses open to Exchange Students (BSc) without limited access) 3 semester I b keuze