Corporate Finance I

Financial management

Econometrics

The curricular unit is a theoretical-practical subject, where, in addition to the transmission of knowledge, there is space for debate and critical reflection on the empirical evidence revealed in previous research (capital structure or distribution of results).

Sensitize the student to a set of essential themes of business finance, specifically:

(i) the capital structure policy. Is there an “optimal” capital structure, that is, an ideal combination of debt and equity?

(ii) The dividend policy. What are the main factors that condition it? How has the effect of the current economic and financial crisis on the profit sharing policy been revealed?

(iii) What is meant by Corporate Governance? How does Corporate Governance condition the ability to create value in companies? Could it be that the capital structure and earnings distribution policy are not conditioned by corporate governance?

Capital Structure: 1. Irrelevance of Capital Structure: Modigliani-Miller; 2. Capital Structure with Taxes; 3. Trade-off models (static and dynamic); 4. The “Pecking Order Theory”; 5. Agency costs and the capital structure.

Dividend Policy: 1. The Issue of Dividend Irrelevance; 2. Alternative Theories of Dividend Policy; 3. Determining factors of the dividend policy.

Corporate governance: 1. The concept of Corporate governance; 2. Main, governance mechanisms; 3. Corporate governance and the institutional and market development context; 4. The central role of governance in explaining the problems of capital structure and distribution of results.

NAO

FUNDAMENTAL

Richard Brealey, Stewart Myers, Franklin Allen and Alex Edmans. (2023). Principles of corporate Finance, McGraw Hill, 14º edition.

Farre-Mensa, Joan and Michaely, Roni and Schmalz, Martin C. and Schmalz, Martin C., Financing Payouts (June 13, 2023). Ross School of Business Paper No. 1263.

Goergen, Marc (2012) International Corporate Governance.

Robertson, C. Diyab, A. and Al-Kahtani, A. (2013). A Cross-National Analysis of Perceptions of Corporate Governance Principles, International Business Review, Vol. 22, No. 1, Pp.315-325.

Augusto, M. G. Gomes, 2006, “Política de Dividendos e Estrutura de Capital – Respostas e Dúvidas do Estado da Arte, Imprensa da Universidade de Coimbra, ISBN: 972-8704-73-9.

COMPLEMENTARY

Soro, M. e Farinha, J. (2012). Dividendos e Recompra de Ações. Editora Vida Económica.

Código de Governo das Sociedades (2014) Instituto Português de Corporate Governance.

Regulamento da CMVM n.º 4/2013, Governo das Sociedades.

Relatório, Índice e Rating de Governo Societário Católica/AEM 2014.