2024 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 (Face-to-face)
- Media-enhanced courses
- -
- Day of week/Period
(Classrooms) - 1-2 Mon / 1-2 Thu
- Class
- -
- Course Code
- IEE.D434
- Number of credits
- 200
- Course offered
- 2024
- Offered quarter
- 3Q
- Syllabus updated
- Mar 14, 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, Empirical study
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 | |
| Class 2 | Lecture: Corporate Governance | |
| Class 3 | Paper Presentation and Discussion: Institutional Investors: Field Study | (Assigned Paper) McCahery, J. A., Z. Sautner, and L. T. Starks, (2016), Behind the Scenes: The Corporate Governance Preferences of Institutional Investors, Journal of Finance 71(6), 2905-2932. https://onlinelibrary.wiley.com/doi/abs/10.1111/jofi.12393 |
| Class 4 | Paper Presentation and Discussion: Institutional Investors: Ownership and Innovation | (Assigned Paper) Luong, Hoang, Fariborz Moshirian, Lily Nguyen, Xuan Tian, Bohui Zhang (2017), “How Do Foreign Institutional Investors Enhance Firm Innovation?” Journal of Financial and Quantitative Analysis, 52(4), 1449-1490. https://www.jstor.org/stable/26590449 |
| Class 5 | Paper Presentation and Discussion: Institutional Investor and Corporate Social Responsibility | (Assigned Paper) Alexander Dyck, Karl V. Lins, Lukas Roth, Hannes F. Wagner , (2019), Do institutional investors drive corporate social responsibility? International evidence, Journal of Financial Economics 131(3) https://www.sciencedirect.com/science/article/pii/S0304405X18302381 |
| Class 6 | Paper Presentation and Discussion: Passive Investor and Corporate Governance | (Assigned Paper) Cornelius Schmidt and Rüdiger Fahlenbrach (2017), Do exogenous changes in passive institutional ownership affect corporate governance and firm value? Journal of Financial Economic 124(2), 285-306. https://www.sciencedirect.com/science/article/pii/S0304405X17300053 |
| Class 7 | Paper Presentation and Discussion: Engagement by Institutional Investor | (Assigned Paper) Elroy Dimson and Oğuzhan Karakaş (2015), “Active Ownership,” Review of Financial Studies, 28(12) https://academic.oup.com/rfs/article/28/12/3225/1573572 |
| Class 8 | Paper Presentation and Discussion: Monitoring by Venture Capitals | (Assigned Paper) Shai Bernstein, Xavier Giroud, Richard R. Townsend (2016) “The Impact of Venture Capital Monitoring”, Journal of Finance, 71(4), 1591-1622. https://onlinelibrary.wiley.com/doi/full/10.1111/jofi.12370 |
| Class 9 | Paper Presentation and Discussion: Venture Capital Ownership and Innovation Efficiency | (Assigned Paper) Xuelin Li, Tong Liu, Lucian A. Taylor, (2023) “Common ownership and innovation efficiency,” Journal of Financial Economics 147(3), 475-497. https://doi.org/10.1016/j.jfineco.2022.12.004 |
| Class 10 | Paper Presentation and Discussion: Corporate Governance and IPO | (Assigned Paper) Amini et al. (2022) "Impact of venture capital holding on firm life cycle: Evidence from IPO firms" Journal of Corporate Finance 74, 102224 https://doi.org/10.1016/j.jcorpfin.2022.102224 |
| Class 11 | Paper Presentation: Corporate Governance in Japan | (Assigned Paper) Ikeda, Inoue and Watanabe (2018) Enjoying the Quiet Life: Corporate Decision-Making by Entrenched Managers, Jouranl of Japanese and International Economies 47, 55-69. https://www.sciencedirect.com/science/article/pii/S0889158317300916 |
| Class 12 | Group Presentation: International corporate finance and governance | |
| Class 13 | Group Presentation: International corporate finance and governance | |
| Class 14 | An Optional Extra Date: Summary of the lecture |
Study advice (preparation and review)
To enhance effective learning, students are encouraged to spend approximately 180 minutes preparing for class for each class.
They should do so by referring to textbooks and other course material.
Textbook(s)
n.a.
Reference books, course materials, etc.
Berk and DeMarzo, Corporate Finance: Global Edition, Pearson Education
Evaluation methods and criteria
The grade of this course is based on the report for the assigned paper and discussion participation (70%), and Group Presentation and contribution to the class discussion (30%).
Related courses
- IEE.D302 ： Corporate Finance
Prerequisites
Participants are expected to have basic knowledge of finance such as capital assets pricing model (CAPM) beforehand.