This unit aims to equip the student with skills to evaluate economic aspects of corporate finance and corporate governance. It will emphasize the role of informational asymmetries in the underlying interactions. The unit will allow the students to explore cutting-edge topics in microeconomics and the theory of incentives. The themes covered will include the structure of the firm, the models of credit rationing and determinants of firm's borrowing capacity. We will further turn to corporate financing under asymmetric information and contract design, explore monitoring in corporate finance and design of securities, control rights and corporate governance.
1x3 hr lecture/seminar per week
Weeklyx1000wds equivalent Assignments (10%), 2x1.5hr Mid-semester exams (50%), 1x2hr Final exam (40%)
ECOS3997 or ECON3999 or ECON3998