Undergraduate Course: Economic analysis of corporate finance law (LAWS10153)
Course Outline
| School | School of Law |
College | College of Arts, Humanities and Social Sciences |
| Credit level (Normal year taken) | SCQF Level 10 (Year 3 Undergraduate) |
Availability | Available to all students |
| SCQF Credits | 20 |
ECTS Credits | 10 |
| Summary | This course aims to examine fundamental concepts and theories concerning corporate financing and investing decisions. It is an in-depth study of some aspects of corporate law and corporate finance. Some seminars have a strong theoretical focus and engage in detail with various theories explaining the interactions between various corporate constituencies. At the same time, the course as a whole has very significant practical relevance.
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| Course description |
Topics covered include:
First part:
1. An introduction to corporation law and economics (including theories of the firm)
2. Limited liability and shareholders' voting rights
3. Dividend policy and agency costs
Second part:
4. Nature and organisation of securities and derivatives markets
5. Introduction to the economic theories underpinning capital markets
6. Issuer disclosure and market transparency
7. Capital raising: IPOs and private equity
8. Capital raising: Crowdfunding and ICOs
9. Legal and economic analysis of market abuse
10. The market for corporate control
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Information for Visiting Students
| Pre-requisites | None |
| High Demand Course? |
Yes |
Course Delivery Information
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| Academic year 2021/22, Available to all students (SV1)
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Quota: 25 |
| Course Start |
Semester 1 |
Timetable |
Timetable |
| 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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| Assessment (Further Info) |
Written Exam
0 %,
Coursework
100 %,
Practical Exam
0 %
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| Additional Information (Assessment) |
The course will be assessed by:
(i) one written critical review of one of the mandatory readings, of no more than 1000 words in length, counting for 25% of the final mark;
AND
(ii) one written essay of no more than 4000 words in length, counting for 75% of the final mark.
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| Feedback |
The formative assessment consists of a critical analysis of one of the mandatory readings for week 3 or week 9. The handouts for week 3 and 9 will be distributed one week in advance, with the mandatory reading that could be selected for formative assessment clearly indicated.
Students are expected to summarise the prescribed reading very briefly and to comment on article's strengths and weaknesses and on its significance in the context of the themes covered in the course up to that point. Participating in the formative assessment is optional.
Collective feedback on submissions will be given in class, in week 3 or 9, and will be posted on the course website. Individual feedback will be sent to each student via email within two weeks from the submission date.
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| No Exam Information |
Learning Outcomes
On completion of this course, the student will be able to:
- Demonstrate a critical understanding of the main economic theories of the corporation and their implications on corporate finance.
- Compare and contrast the legal and economic approaches to fiduciary duties and the business judgement rule.
- Analyse the main economic functions of capital markets and of capital market instruments.
- Demonstrate a critical understanding of the main economic theories relating to the operation of capital markets and prohibition of market abuse.
- Be able to analyse critically primary and secondary source materials and use them to present a logical and well-structured oral or written argument.
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Reading List
The following titles offer background information on company law:
Reiner Kraakman et al., The Anatomy of Corporate Law, 2nd ed. (New York: Oxford University Press, 2009), chapters 3-6
John Lowry and Arad Reisenberg, Pettet's Company Law: Company Law and Corporate Finance, 4th ed. (Essex: Pearson, 2012), chapters 7 - 11
Specific materials and resources for each class will be indicated in the course handouts which will be made available on a weekly basis in advance of each class.
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Additional Information
| Graduate Attributes and Skills |
By the end of the course the students will:
1) develop their ability to work independently under fixed deadlines, seeking relevant advice and support when necessary
2) develop their ability to work constructively as a member of a group or team, assert leadership or follow instructions
3) participate effectively in seminars, workshops and discussions
4) 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
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| Keywords | Theory of the Firm; Shareholder Primacy; Stakeholders; Fiduciary Duties; Market for Coporate Control |
Contacts
| Course organiser | Dr Longjie Lu
Tel: (0131 6)50 2336
Email: Longjie.Lu@ed.ac.uk |
Course secretary | Ms Angela Jones
Tel: (0131 6)51 4550
Email: Angela.Jones@ed.ac.uk |
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