Undergraduate Course: Economic analysis of corporate finance law (LAWS10153)
Course Outline
| School | School of Law |
College | College of Humanities and Social Science |
| Course type | Standard |
Availability | Available to all students |
| Credit level (Normal year taken) | SCQF Level 10 (Year 3 Undergraduate) |
Credits | 20 |
| Home subject area | Law |
Other subject area | None |
| Course website |
None |
Taught in Gaelic? | No |
| Course description | This course aims to examine fundamental concepts and theories concerning corporate financing and investing decisions. The course is structured in two parts. The first part (seminars 1-5) covers the economic structure of corporate law and governance, with a focus on legal rules governing financing, investment and dividend decisions. Furthermore, this part explores the links between the theory of the firm and corporate finance and the main legal and economic relationships that shape managerial business decision-making.
The second part (seminars 6-10) is an analysis of legal and economic issues arising out of the relationship of the corporation with capital markets through IPOs, stock exchange listings, and other forms of raising finance through equity and debt markets. It will examine the theories underpinning the operation of debt and equity markets and the legal prerequisites of efficient markets. As such it will focus on issuer disclosure mechanisms used to diminish information asymmetries and securities fraud. It will also discuss economic theories relating to the market for corporate control and welfare gains and losses associated with corporate takeovers. Finally, it will examine abusive market practices in securities markets, such as insider dealing and market manipulation, and the ways legal regulation is used to protect investors and market integrity.
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Information for Visiting Students
| Pre-requisites | None |
| Displayed in Visiting Students Prospectus? | Yes |
Course Delivery Information
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| Delivery period: 2013/14 Semester 1, Available to all students (SV1)
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Learn enabled: No |
Quota: 27 |
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Web Timetable |
Web Timetable |
| Course Start Date |
16/09/2013 |
| Breakdown of Learning and Teaching activities (Further Info) |
Total Hours:
200
(
Seminar/Tutorial Hours 20,
Programme Level Learning and Teaching Hours 4,
Directed Learning and Independent Learning Hours
176 )
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| Additional Notes |
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| Breakdown of Assessment Methods (Further Info) |
Written Exam
0 %,
Coursework
100 %,
Practical Exam
0 %
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| No Exam Information |
Learning Outcomes
On completion of this course, the student will be able to:
1. Knowledge and Sources of Law:
By the end of the course, students will be able to:
a) demonstrate a critical understanding of the main economic theories of the corporation and their implications on corporate finance
b) analyse the main tools used by corporations to raise capital and critically evaluate the costs and benefits of each of them
c) compare and contrast the legal and economic approaches to fiduciary duties and the business judgment rule
d) analyse the main economic functions of capital markets and of capital market instruments
e) understand in depth the different types of corporate takeovers and critically evaluate the conflicting interests, objectives, and outcomes underpinning the operation of the market for corporate control
f) demonstrate a good understanding of the main economic theories relating to the operation of capital markets and prohibition of market abuse
2. Subject-specific Skills:
By the end of the course, students will:
a) be able to analyse critically source materials and use them to present a structured argument
b) be able to plan and draft an extended piece of independent research
c) develop their ability to adapt and apply analytical tools derived from law, economics and finance to new problems and to suggest practical solutions
d) develop their ability to critique systematically existing legal standards and policy choices in corporate finance law, with a view to appraising their effectiveness and suitability to tackle current problems
3. General Transferable Intellectual Skills:
By the end of the course the students will:
a) be able to make a reasoned choice between rival answers to legal questions
b) develop the ability to engage systematically and creatively with complex theoretical work
c) develop the ability to assemble information derived from a number of different sources, distinguish the relevant from the irrelevant, and create a coherent synthesis
d) acquire the essential legal research skills and drafting techniques necessary to produce highly structured policy reports and legal documents
4. Key Personal Skills:
By the end of the course the students will:
a) develop their ability to work independently under fixed deadlines, seeking relevant advice and support when necessary
b) develop their ability to work constructively as a member of a group or team, assert leadership or follow instructions
c) participate effectively in seminars, workshops and discussions
d) develop their capacity of reflecting on the outcomes of individual research efforts with a view to identifying strengths and weaknesses and furthering their own learning
5. Subject-specific Legal and Ethical Values:
The course aims to raise students¿ awareness of, inter alia, the following issues:
a) the critiques of the shareholder primacy model of the firm
b) the ethical rationales for prohibiting insider dealing and market abuse
c) issues of market fairness in a capitalist economy
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Assessment Information
Details of the components of assessment used.
1. 75% take home essay of 4,000 words words excluding cover page, footnotes and bibliography
o the essay titles will be released on the first day of the exam diet immediately following course delivery. The essays must be submitted via PebblePad on or before the last day of the exam diet.
2. 25% assessed element
o this component of assessment may consist of a presentation in class, a blog entry, a critical review or a poster presentation, as selected by the course organisers. The assessment technique selected will be indicated in the course guide, together with detailed guidelines and assessment criteria
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Special Arrangements
| None |
Additional Information
| Academic description |
Not entered |
| Syllabus |
Indicative teaching programme
Part I: Corporate law and governance issues
1. The theory of the firm
2. Capital structure and corporate financing methods
3. Limited liability and the firms¿ cost of capital
4. The role of dividend policy
5. Fiduciary duties and the business judgment rule
Part II: Capital markets issues
6. Introduction to the economic theories underpinning capital markets
7. The market for corporate control
8. Nature and organization of securities and derivatives markets
9. Issuer disclosure, market transparency, and the cost of capital
10. Legal and economic analysis of market abuse |
| Transferable skills |
Not entered |
| Reading list |
Not entered |
| Study Abroad |
Not entered |
| Study Pattern |
Not entered |
| Keywords | Not entered |
Contacts
| Course organiser | Prof Emilios Avgouleas
Tel: (0131 6)50 2028
Email: eavgoule@exseed.ed.ac.uk |
Course secretary | Mrs Susan Leask
Tel: (0131 6)50 2344
Email: susan.leask@ed.ac.uk |
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© Copyright 2013 The University of Edinburgh - 13 January 2014 4:33 am
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