Slezská univerzita v Opavě
Obchodně podnikatelská fakulta Karviná

Guarantor: Department of Finance

Course Range: :
Program unit "Doing business in Central Europe A" in bachelors and masters study specialization.

Extension:          1+2, 5 credits (ECTS)

Lecturer:     

Ing. Michaela Roubíčková, Ph.D.

Objectives:
The purpose of this course is to develop an understanding of the rapidly evolving situation in the field of Corporate Finance in the former centrally planned economies of Central Europe. Students will be able to understand not only the major topics of Corporate Finance, but also to evaluate the influence of privatization processes on corporate culture in these countries, and to evaluate consequences of these processes.

Topics covered:

1. Privatization Processes and Corporate Finance – An Overview
Starting lines, current situation, ongoing integration of Central European capital markets, the necessity of the harmonization with other European countries, European corporate tax systems.

2. Structure of Ownership in Privatized Firms
Development of ownership during the 90th, a continuation of privatization of remaining strategic companies.

3. Foreign Investments
Structure of foreign investment in Central European countries, an incoming of foreign investors.

4. Risk Concepts and Valuation, Hedging
Risk statistics, normal distribution and its implications for standard deviation, risk during privatization processes.

5. Capital Structure of Privatized Firms
Influence of financial market in Central Europe on capital structure of the firms, financial leverage in privatized firms.

6. Long–Term Financing in Central Europe
Issuing Equity Securities to the Public – Initial Public Offering, Long-Term Debt, Leasing, European lease accounting.

7. Short-Term Financing in Central Europe
Tracing cash and net working capital, defining cash in terms of other elements, managing the collection and distribution of cash.

8. Foreign Trade in Central European Countries
International exposure of Central European firms.

Basic Literature:
block, sb, geoffrey, ga Foundations of Financial Management. Boston: McGraw-Hill, 2005. ISBN 0-07-284229-6.
BUrKLEY, A., Ross, SA., Westerfield, RW., Jaffe, JF. Corporate Finance Europe. Cambridge: McGraw-Hill, 2004. ISBN 0-256-13473-1.
ross, sr, westerfield, rw, Jordan, bd Fundamentals of Corporate Finance 7th Edition, Boston: McGraw-Hill, 2006. ISBN 0-07-319262-7.
Various readings from The Economist, The Euro and other financial magazines.

Assessment:
claswork, test

Validity of acreditation:
Subject was accredited on the faculty on 19. 4. 2006, the validity of the accreditation lasts till the end of academnic year (session) 2007/2008.