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    Essay Topics: Corporate Finance

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    Ben Seto
    This document provides several essay topics related to corporate finance: 1. It discusses how information asymmetries between parties in a takeover affect the dynamics and outcome of the deal, and how deal documentation aims to reduce these asymmetries. 2. It examines reasons for lack of improvement in M&A performance over decades, including choice of integration strategy and cultural differences impacting outcomes. 3. It explains different methods of payment companies can use in M&A deals and why acquiring companies may prefer certain methods depending on context, such as using cash versus stock.

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    Essay Topics: Corporate Finance

    Uploaded by

    Ben Seto
    44 views3 pages
    This document provides several essay topics related to corporate finance: 1. It discusses how information asymmetries between parties in a takeover affect the dynamics and outcome of the deal, and how deal documentation aims to reduce these asymmetries. 2. It examines reasons for lack of improvement in M&A performance over decades, including choice of integration strategy and cultural differences impacting outcomes. 3. It explains different methods of payment companies can use in M&A deals and why acquiring companies may prefer certain methods depending on context, such as using cash versus stock.

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    Essay Topics_Corporate_Finance

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    This document provides several essay topics related to corporate finance: 1. It discusses how information asymmetries between parties in a takeover affect the dynamics and outcome of the deal, and how deal documentation aims to reduce these asymmetries. 2. It examines reasons for lack of improvement in M&A performance over decades, including choice of integration strategy and cultural differences impacting outcomes. 3. It explains different methods of payment companies can use in M&A deals and why acquiring companies may prefer certain methods depending on context, such as using cash versus stock.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    44 views3 pages

    Essay Topics: Corporate Finance

    Uploaded by

    Ben Seto
    This document provides several essay topics related to corporate finance: 1. It discusses how information asymmetries between parties in a takeover affect the dynamics and outcome of the deal, and how deal documentation aims to reduce these asymmetries. 2. It examines reasons for lack of improvement in M&A performance over decades, including choice of integration strategy and cultural differences impacting outcomes. 3. It explains different methods of payment companies can use in M&A deals and why acquiring companies may prefer certain methods depending on context, such as using cash versus stock.

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    Essay Topics: Corporate Finance

    Prof. dr. Joseph McCahery

    Theory of Takeovers

    Explain how various information asymmetries between the parties to a


    takeover affect its dynamics and outcome. For example, the existence of
    information asymmetries may determine the choice in the way a control
    transfer occurs (tender, carve out etc). Explain what terms or provisions often
    appear in deal documentation to reduce information asymmetries.

    M&A Underperformance

    Prior academic research reports that there has been little change in the
    returns to target firms’ shareholders. Explain the possible reasons for the lack
    of improvement in M&A performance over the last few decades.

    Explain the important role that the choice of integration strategy and the
    acquisition process can play on acquisition outcomes. Discuss how different
    integration approaches (as well as cultural differences) may impact the
    ultimate outcome of an acquisition.

    Methods of Payment

    Explain the different methods of payment that companies can choose in an


    M&A transaction. Discuss the different effects on value that the method of
    payment can have on a target companies shares, and why acquiring
    companies might want, for example, to use cash versus stock in different
    contexts (eg, acquiring firm’s shares are overvalued).

    Due Diligence in M&A

    Does screening, due diligence processes, and ultimately premium paid,


    influence the post-acquisition integration approach choice, speed of
    implementation process, transition management structure in the European
    and cross-border M&A?

    Due Diligence in Project Finance

    Discuss the role of project management techniques in identifying the costs


    and benefits of a project. In particular, explain how due diligence and project
    management can help limit risks and remedy planning errors through quality
    control situations. Please provide examples to illustrate your arguments.

    1
    Deal Protection

    Discuss the structure and regulation of negotiated acquisitions in the US and


    UK and the reasons for deal protection measures. Explain the differences
    between deal protection measures available for publicly listed companies in
    negotiated transactions in the US and the UK.

    Takeover Defenses

    Explain the rational for companies to implement antitakeover provisions to


    protect them for a hostile bidder. Discuss whether antitakeover provisions are
    value creating or destroying with respect to the different stakeholders.

    Leveraged Buyouts

    Proponents of LBOs argue that private equity firms apply financial,


    governance and operational engineering to their portfolio companies, and, in
    so doing, improve firm operations and create economic value. In contrast,
    some academics argue that private equity firms take advantage of tax breaks
    and superior information, but do not create any operational value. Finally,
    others argue that private equity is influenced by market timing between debt
    and equity markets. Discuss the proponents’ view and the different criticisms
    about whether private equity creates operational value.

    Venture Capital

    Venture capital investment in New Zealand growth companies has, according


    to recent studies, tended to fluctuate with most investment in a small number
    of major transactions. To be sure, there has been an increase recently in
    investment in venture, early stage and mid-market transactions. Asses the
    strengths and limitations of the legal and regulatory infrastructure for venture
    capital funds and reducing the barriers to investment in emerging growth
    companies. In the context of the current policy setting, discuss what initiatives
    (tax, regulatory, etc) policymakers can take to support further development of
    the New Zealand venture capital industry.

    Shareholder Activism in M&A

    Explain the reasons for the emergence of shareholder activism and why it is
    likely to keep growing. Identity the different category of activist funds. Discuss
    the changing tactics and response of target firms, and discuss potential policy

    2
    response that regulatory could implement to limit short-term activist pressures
    on firms.

    Explain the recent trend of EU member states also to allow loyalty shares to
    long term shareholders and reduce the influence of short term investors in
    takeover contests.

    Takeover Regulation

    Since the implementation of the EU Takeover Directive, European member


    states have adopted laws to protect “strategic sectors”. Discuss the different
    measures that EU member states have implemented and whether the extent
    to which some jurisdictions have reversed the board passivity rule.

    Corporate Venture Capital

    Discuss the differences between corporate venture capital and venture capital.
    Explain why established companies invest in entrepreneurial ventures
    (strategic versus financial returns). Examine the investor outcomes from CVC
    activity. Discuss why some other firms and others (Sovereign wealth funds)
    participate in corporate venture capital activity.

    Fintech

    Peer-to-peer lending is a rapidly developing market worldwide for individuals


    and small-and-medium sized firms that seek to borrow money or obtain loans.
    Discuss the evolution of P2P lending in New Zealand. In particular, assess the
    benefits and costs of the current regulatory approach to P2P lending platforms
    (provide examples). Discuss what changes, if any, may be needed to preserve
    and discipline the P2P approach to lending.

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