This class exists in these courses :
• IÉSEG > IESEG Degree - Programme Grande École > Semester 1 > 4,00 ECTS

Prerequisites

Financial ratio analysis, investment decision rules, financing and investment decisions in a financial and non-financial corporation, payout policy, analysis of stock returns.

Learning outcomes

ASSET & RISK MANAGEMENT SUBTRACK:
Understand and get hands-on experience of the front and back office operations of a bank, their interaction in a competitive environment
Develop analytical skills related to asset and liability management in a banking operating environment. (AACSB Learning Goal)

CORPORATE FINANCE SUBTRACK:
Manage the finances and the production of a company by planning, formulating strategies, and making sets of sound decisions sequentially through time. (AACSB Learning Goal)

Course description

This course teaches decision-making skills required of managers with varying financial responsibilities in a company (industrial company, or financial company). The course is divided in two sections.
Section 1 is based on a business game implemented in both subtracks, i.e. Asset and Risk Management (ARM) and Corporate Finance (CF). In the ARM subtrack, students are managers of a bank and should take investment decisions to well anticipate and manage the risks associated to a financial institution and end up with the most profitable business for shareholders. FinGame 5.0 is used in the CF subtrack and is a comprehensive multiple-period finance case/simulation. Students play a decision-making role in a hypothetical company over numerous periods of operation by controlling major financial and operating decisions in the company. Students support each decision with a sound finance theory and thereby develop and enhance skills in financial management, financial accounting statement analysis, and general decision making.
Section 2 consists in presentations by professionals in the finance industry. Through these presentations, students acquire a broader knowledge of jobs in the finance industry, sove case studies, and make practical financial decisions.

Class type

Class structure

Teaching methods

• Case study
• E-learning
• Interactive class
• Presentation
• Project work
• Seminar

Assessment

60% of the final grade is related to the simulation game. A first assignment will aim at learning how the game works and testing financing and production strategies. Second, in several written documents, students will be asked to present their hypothetical company to a group of investors, describe the tactical and strategical choices made during the course of the game. The financial results of the hypothetical company at the end of the simulation will also be used to grade the managerial skills of the students.
40% of the final grade comes from case studies related to the presentation made by a profesional from the industry, and effective class participation during presentations.

Recommended reading

• Brooks, FinGameONLINE 5.0: Participants Manual, McGraw-Hill. -

• Berk, DeMarzo, Corporate Finance, Pearson -

• Vernimmen, Corporate Finance, Wiley - -

• Casu, B. Girardone, C. and Molyneux P. (2015). Introduction to Banking. Pearson Education, 2nd edition - Casu, B. Girardone, C. and Molyneux P. (2015). Introduction to Banking. Pearson Education, 2nd edition