Financial Studies
[ECGE1314]
[30h + 10h] 4 credits
This course is taught in the 1st semester.
Teacher(s): Nihat Aktas, Etienne Chalmagne(supplée Nihat Aktas)
Language: French
Level: First
Aims
Analysis will thus be restricted to maximisation of a company's value and more particularly maximisation of shareholders' wealth. Within this theoretical framework, the financial approach can provide precise answers that make it possible to structure the decision-making process. Limiting the theoretical framework in this way by no means indicates that the final decisions taken by companies should be limited to this single dimension without considering the interests of the numerous parties involved in the life of the company (shareholders, managers, employees, suppliers, etc.)
It is also recognised these days that businesses have a social responsibility and that their thinking needs to include an ethical dimension. However, the Finance course focuses only on the financial dimension of the decision-making process, whilst acknowledging that businesses are not guided simply by this one dimension.
Analysing business financing decisions requires an understanding of the mechanisms of price formation at play in a financial market and more specifically, of the relation in the market between expected profit and risk taken.
The final part of the course, which aims to meet the course's initial objective of providing students with a " broad cultural overview" of Financial Studies, introduces students to models that do not fit into the traditional approach.
Other information (prerequisite, evaluation (assessment methods), course materials recommended readings, ...)