3504072: Investment banking

Description

• Definition of Investment Banking
• Going Public, IPO`s
• The Cost of Being Public
• The Cost of Going Public
• Under pricing and Underperformance
• Managing the Process Underwriting
• Merger and Acquisitions
• Merger Motives
• Categories of M&A
• Due Diligence
• Post-Merger Integration
• Defence Measures
• Investment Funds
• The Role of Investment Funds in Investment Banking
• Hedge Funds and Private Equity Funds
• Exchange Traded Funds
• Stock Repurchase Programmes

Learning Outcomes

• Demarcating investment banking
• Evaluating initial public offerings
• Illustrating responsibilities for capital limited by shares
• Evaluating motives for mergers and acquisitions
• Classifying procedures of mergers and acquisitions
• Determining defence measures for undertakings
• Demonstrating the role of investment funds in investment banking
• Describing hedge funds and private equity funds
• Justifying Exchange Traded Funds
• Giving reasons for share buyback

Lectures Method

Interactive lecture with exercises, business-scene simulation

Literature

Required reading:

• Hockmann, H.-J. /Thiessen, F.(Hrsg.) (2007). Investment Banking. Stuttgart: Schaeffer-Poeschel.
• Houston, J. /James, C. (1996). Bank information monopolies and the mix of private and public debt claims. Journal of Finance, Vol. 51 No.5, pp.1863-89.
• Ritter, J.R. /Welch, I. (2002). A Review of IPO Activity, Pricing and Allocation. In: Journal of Finance, 57 Jg. S. 1795-1828.
• Perraudin W. /Taylor, A. P. (2002). On the consistency of ratings and bond market yields. Journal of Banking & Finance. Vol. 26. pp. 2769-2788.
• Brennan, M. /Franks, J. (1997). Underpricing, ownership, and control in initial public offerings of equity securities in the UK. Journal of Financial Economics. Vol. 45. No.3. pp. 391-413.

Materials

Lecture slides on moodle