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Summary Updated Tutorial on Corporate Finance - The Cost of Capital Corporation Finance and the Theory of Investment. EBC 4057 $7.99   Add to cart

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Summary Updated Tutorial on Corporate Finance - The Cost of Capital Corporation Finance and the Theory of Investment. EBC 4057

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Updated Tutorial on Corporate Finance - The Cost of Capital Corporation Finance and the Theory of Investment. EBC 4057. I used this and scored high in the final exam.

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  • February 5, 2022
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  • 2021/2022
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Corporate Finance
Maastricht University (Universiteit
Maastricht)
Updated: EBC 4057

, Contents

Tutorial 1: Introduction & Empirical Methods ................................................................................ 3
1.1 Corporate Governance ....................................................................................................... 3

1.2 Endogeniety in Corporate Finance, in George Constantinides, Miltion Harris, and Rene

Stulz, eds. ..................................................................................................................................... 7

1.3 Event Studies in Economics and Finance .............................................................................. 9



Tutorial 2: Capital Structure I ........................................................................................................ 10
2.1 The Capital Structure Puzzle: Another Look at the Evidence.............................................. 10

2.2 Capital Structure Choices ..................................................................................................... 14



Tutorial 3 Capital Structure II ........................................................................................................ 17
3.1 Financing Major Investments: Information about Capital Structure Decisions ................... 17

3.2 As certain as debt and taxes: Estimating the tax sensitivity of leverage from state tax

changes ....................................................................................................................................... 19



Tutorial 4 Security Offerings I ....................................................................................................... 22
4.1 IPO first-day returns, offer price revisions, volatility and form S-1 language ..................... 22

4.2 Where Have All the IPOs Gone? ......................................................................................... 24



Tutorial 5 Security Offerings II ...................................................................................................... 27
5.1 Seasoned Equity Offerings, Corporate Governance, and Investments ................................ 27

5.2 When do high stock returns trigger equity issues? ............................................................... 29



Tutorial 6: Case “Bank Capital Regulation” .................................................................................. 31
6.1 Fallacies, Irrelevant Facts, and Myths in the Discussion of Capital Regulation .................. 31

,6.2 Liquid-claim production, risk management, and bank capital structure .............................. 35

6.3 Bank Bailouts and Moral Hazard: Evidence from Germany ............................................... 36

6.4 Do Strict Capital Requirements Raise the Cost of Capital? Bank Regulation, Capital

Structure, and the Low Risk Anomaly ....................................................................................... 37



Tutorial 7: Mergers & Acquisitions I ............................................................................................. 39
7.1 Investment Banks as Insiders and the Market for Corporate Control .................................. 39

7.2 When It Pays to Pay Your Investment Banker ..................................................................... 42

Tutorial 8 Mergers & Acquisitions II ............................................................................................. 44

8.1 Wealth Destruction on a Massive Scale? A study of Acquiring-Firm Returns in the Recent

Merger Wave .............................................................................................................................. 44

8.2 Winning by Losing: Evidence on the Long-Run Effects of Mergers .................................. 46



Tutorial 9 Buyouts .......................................................................................................................... 48
9.1 Bondholder Losses in Leveraged buyouts ........................................................................... 48

9.2 The Evolution of Capital Structure and Operating Performance after Leveraged buyouts:

Evidence from U.S. Corporate Tax Returns............................................................................... 50




Tutorial 10 Corporate Risk Management ....................................................................................... 52
10.1 The Real and Financial Implications of Corporate Hedging .............................................. 52

10.2 Hedging and Value in the U.S. Airline Industry ................................................................ 54

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