2020 Faculty Courses School of Engineering Department of Industrial Engineering and Economics Graduate major in Industrial Engineering and Economics

Corporate Finance and Governance

Academic unit or major: Graduate major in Industrial Engineering and Economics
Instructor(s): Kotaro Inoue / Yosuke Kimura
Class Format: Lecture (Zoom)
Media-enhanced courses: -
Day of week/Period (Classrooms): 7-8 Mon (Zoom) / 7-8 Thu (Zoom)
Class: -
Course Code: IEE.D434
Number of credits: 200
Course offered: 2020
Offered quarter: 3Q
Syllabus updated: Jul 10, 2025
Language: English

Syllabus

Course overview and goals

This is a master's course of corporate finance and corporate governance.
This course will follow recent literature of corporate finance such as capital market, corporate governance, corporate ownership structure, institutional investors, and banks. In particular, the course will focus on empirical studies in these fields. Participants also participate group works related to the above topics.

Course description and aims

The goal of this course is to understand the priciples of corporate finance so that class participants can start their own researches in this field and other related fields such as investment, corporate management, and accounting.

Student learning outcomes

実務経験と講義内容との関連 (又は実践的教育内容)

Kotaro Inoue, the instructor of this course, has 15 years experience as a practitioner in finance in a bank and a investment banking service. He will utilize his experience at most in his classes.

Keywords

Corporate Finance, Corporate Governance, Asset Pricing, Mergers and Acquisitions, Behavioral Finance

Competencies

Specialist skills
Intercultural skills
Communication skills
Critical thinking skills
Practical and/or problem-solving skills

Class flow

All the students are expected to read all the assigned papers. Each student will be assigned several papers in the following reading list. The number of assigned paper per student will depend on the class size. The assigned students are expected to read and analyze the paper carefully and prepare presentation about the paper and lead discussion in the class. Other students are expected to read the paper and prepare discussion. In the final two classes, students will participate group research projects to have a sense how implications from academic researches and real businesses interact.

Course schedule/Objectives

	Course schedule	Objectives
Class 1	Introductionary Lecture: Efficient market and Corporate Finance	(Reference Paper) Fama (1991) Efficient Market ii http://www.jstor.org/stable/2328565
Class 2	Theory and Practice Graham, J. and C. Harvey (2001) “The theory and practice of corporate　finance: Evidence from the field” Journal of Financial Economics 60, 187-243	Graham, J. and C. Harvey (2001) “The theory and practice of corporate finance: Evidence from the field” Journal of Financial Economics 60, 187-243 http://faculty.fuqua.duke.edu/~jgraham/website/SurveyPaper.PDF
Class 3	Law and Finance La Porta et al. (1998) “Law and Finance”	(Assigned Paper) La Porta et al. (1998) “Law and Finance” http://onlinelibrary.wiley.com/doi/10.1111/1540-6261.00457/pdf
Class 4	Corporate Governance Gompers, P.A., J.L.Ishii, and A.Metrick (2003) Corporate Governance and Equity Prices	(Assigned paper) Gompers, P.A., J.L.Ishii, and A.Metrick (2003) Corporate Governance and Equity Prices http://papers.ssrn.com/sol3/papers.cfm?abstract_id=278920
Class 5	CEO Bertrand and Mullainathan (2003) Enjoying the Quiet Life? Corporate Governance and Managerial Preferences	(Assigned Paper) Bertrand and Mullainathan (2003) Enjoying the Quiet Life? Corporate Governance and Managerial Preferences http://dash.harvard.edu/bitstream/handle/1/3429713/Mullainathan_EnjoyingQuietLife.pdf?sequence=2
Class 6	Management and Firm Performance Nicholas Bloom and John Van Reenen, (2007) Measuring and Explaining Management Practices Across Firms and Countries, Quarterly Journal of Economics 122 (4): 1351-1408.	(Assigned Paper) Nicholas Bloom and John Van Reenen, (2007) Measuring and Explaining Management Practices Across Firms and Countries, Quarterly Journal of Economics 122 (4): 1351-1408. http://www.stanford.edu/~nbloom/MeasuringManagement.pdf
Class 7	Managerial Compensation Cai and Vijh (2007), Incentive Effects of Stock and Option Holdings of Target and Acquirer CEOs, Journal of Finance	(Assigned Paper) Cai and Vijh (2007), Incentive Effects of Stock and Option Holdings of Target and Acquirer CEOs, Journal of Finance http://faculty.lebow.drexel.edu/CaiJ/JF2007.pdf
Class 8	Large Shareholders Jay Dahyaa, J., O. Dimitrovb, J.J. McConnell (2008) Dominant shareholders, corporate boards, and corporate value: A cross-country analysis	(Assigned Paper) Jay Dahyaa, J., O. Dimitrovb, J.J. McConnell (2008) Dominant shareholders, corporate boards, and corporate value: A cross-country analysis http://www.sciencedirect.com/science/article/pii/S0304405X07001389
Class 9	Managerial Overconfidence Malmendier and Tate (2005), CEO Overconfidence and Corporate Investment, Journal of Finance, 2005, 60, 2261-2700	(Assigned Paper) Malmendier and Tate (2005), CEO Overconfidence and Corporate Investment, Journal of Finance, 2005, 60, 2261-2700 http://www.nber.org/papers/w10807
Class 10	Cash Holdings Opler, T., L. Pinkowitz, R. M. Stulz, and R. Williamson (1999), “The Determinants and Implications of Corporate Cash Holdings,”Journal of Financial Economics 52 (1), 3-46.	(Assigned Paper) Opler, T., L. Pinkowitz, R. M. Stulz, and R. Williamson (1999), “The Determinants and Implications of Corporate Cash Holdings,”Journal of Financial Economics 52 (1), 3-46. http://fisher.osu.edu/supplements/10/10402/Determinants-cash-holdings.pdf
Class 11	Initial Public Offering Derrien and Womack (2003), "Auctions vs. Bookbuilding and the Control of Underpricing in Hot IPO Markets,'' Review of Financial Studies, 16 (1), 31-61.	(Assigned Paper) Derrien and Womack (2003), "Auctions vs. Bookbuilding and the Control of Underpricing in Hot IPO Markets,'' Review of Financial Studies, 16 (1), 31-61. http://www.jstor.org/stable/i253959
Class 12	Mergers and Acquisitions Jesse Ellis, Sara B. Moeller, Frederik P. Schlingemann, René M. Stulz (2012)　Globalization, Governance, and the Returns to Cross-Border Acquisitions	(Assigned Paper) Jesse Ellis, Sara B. Moeller, Frederik P. Schlingemann, René M. Stulz (2012)　Globalization, Governance, and the Returns to Cross-Border Acquisitions http://www.erim.eur.nl/fileadmin/erim_content/documents/EMSS_May_31_Final.pdf
Class 13	Innovation JAN BENA and KAI LI(2014) “Corporate Innovations and Mergers and Acquisitions,” Journal of Finance 69(5)	(Assigned Paper) JAN BENA and KAI LI(2014) “Corporate Innovations and Mergers and Acquisitions,” Journal of Finance 69(5) http://onlinelibrary.wiley.com/doi/10.1111/jofi.12059/pdf
Class 14	Case 1: Seagate Technology Topic: Efficient Market and Behavioral Corporate Finance To be distributed in the class.	Prepair for case discussion in the class

Study advice (preparation and review)

To enhance effective learning, students are encouraged to spend approximately 100 minutes preparing for class and another 100 minutes reviewing class content afterwards (including assignments) for each class.
They should do so by referring to textbooks and other course material.

Textbook(s)

n.a.

Reference books, course materials, etc.

Principles of Corporate Finance, Brealey, Myers, and Allen, McGraw-Hill

Evaluation methods and criteria

The grade of this course is based on the report for the assigned paper and discussion participation (80%), and class participation in the case study classes (20%).　　

Related courses

IEE.D302 ： Corporate Finance

Prerequisites

Participants are expected to have basic knowledge of finance such as capital assets pricing model (CAPM) beforehand.