Financial Management 2600-MSMdz1ZF
Lectures:
1. Principles, Objectives, and Functions of Financial Management: The interdependency between finance and other business functional areas.
2. Capital Market Efficiency: Theoretical frameworks and market anomalies.
3. Introduction to Business Valuation and Value-Based Management (VBM): Core concepts and value drivers.
4. Investment Decision-Making and Appraisal: Integration of financial and ESG (Environmental, Social, and Governance) criteria.
5. Risk and Return: Risk diversification, portfolio theory, and the Capital Asset Pricing Model (CAPM).
6. The Linkage between Investment and Financing Decisions: Interaction and strategic alignment.
7. Real Options in Corporate Finance: Application of option pricing theory to capital budgeting.
8. Short-term Financial Management: Assessing the impact of short-term operational decisions on the firm's financial standing.
9. Selected Topics in Financial Management: International markets and behavioral finance perspectives.
Exercises:
1. Introduction to Business Valuation and Value-Based Management
• Drivers of value creation.
• Value-Based Management (VBM) vs. Shareholder Value (SHV) concepts.
• Intrinsic value vs. current stock price – market disequilibrium factors.
• Business valuation methodologies (Income, Market, and Asset-based approaches).
• Testing capital market efficiency.
2. Corporate Investment and Financing Decisions – Linkage Analysis
• Capital structure and dividend policy.
• Modigliani-Miller theorems and Miller’s model.
• Trade-off theory (substitution theory).
• Signaling effects and information asymmetry.
• Agency costs in corporate finance.
• Pecking Order Theory (Financing hierarchy).
• Equity and debt issuance: principles and efficiency.
3. Risk and Return Analysis
• Quantitative assessment of risk and expected returns in corporate practice.
4. Investment Appraisal: Financial and Non-Financial (ESG) Criteria
• Valuation of incremental cash flows.
• Capital rationing under budget constraints.
• Impact of price fluctuations, inflation, and taxation on investment viability.
5. Mergers, Acquisitions, and Corporate Restructuring
• M&A theory and motives for business combinations.
• Determining the value of a merger (synergy valuation).
• Defensive tactics against hostile takeovers.
• Rationale, types, and tools for corporate restructuring.
6. Short-term Financial Management and Liquidity Assessment
• Concept of Working Capital and Net Working Capital (NWC).
• Managing the structure of current assets.
• The Operating Cycle and Cash Conversion Cycle (CCC).
• Financial liquidity vs. solvency analysis.
• Management of inventory, cash holdings, and marketable securities.
• Accounts receivable management (credit policy).
• Financing strategies for current assets.
• Cash Budgeting and forecasting.
Type of course
Mode
Course coordinators
Learning outcomes
In the scope of knowledge:
K_W01 – Know and understand in depth the research methodology and terminology in the discipline of management and quality science as well as in complementary disciplines (economics and finance, legal sciences).
K_W02 – Know and understand complex processes and phenomena occurring in different types of organizations and their environment, using management theory and complementary disciplines (economics and finance, legal sciences) to recognize, diagnose, and solve problems related to key organizational functions (operational, marketing, financial, personnel management) and their integration within organizational strategies.
K_W03 – Know and understand advanced economic theories and models related to the functioning of organizations and the entire economy.
In the scope of skills:
K_U01 – Be able to use the theory of management and quality science, as well as complementary disciplines (economics and finance, legal sciences), to recognize, diagnose, and solve complex and atypical problems related to key organizational functions and integrate them within organizational strategies, using appropriate sources and adapting existing or developing new methods.
K_U06 – Have the ability to self-educate and improve acquired qualifications.
K_U09 – Be able to support others in preparing analyses and projects related to organizational functioning and advise on the application of methods and tools in management practice.
In the scope of social competences:
K_K01 – Be ready to critically assess situations and phenomena related to financial activity.
K_K05 – Be ready to adhere to and promote ethical standards and to make responsible decisions in organizational activities.
Assessment criteria
Forms of Assessment
• Lectures: Written examination, test.
• Tutorials: Graded credit (based on final marks).
Bibliography
Basic Literature:
Brigham E., Houston J. (2015) Zarządzanie finansami, Wydawnictwo Naukowe PWN Warszawa
• Cieślik F., Postuła M.(red.) (2020), Zarządzanie finansami przedsiębiorstwa – teoria i praktyka, Wydawnictwo Naukowe Wydziału Zarządzania UW, Warszawa 2020.
Supplementary Literature:
Czerwonka L., (2018) Zarządzanie finansami. Wprowadzenie przykłady i zadania, C.H. BECK Warszawa
• Rutkowski A. (2016) Zarządzanie finansami, PWE Warszawa
• Brigham E.F, Ehrhardt M.C. (2023) Financial Management: Theory & Practice, Cengage Learning
Additional information
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: