2012-2013 Academic Catalog

May 05, 2024

2012-2013 Academic Catalog [ARCHIVED CATALOG]

FIN 5306 - Legal Aspects of Corporate Finance

This course deals with the interface of law and the field of corporate finance. The recent recession brought about the collapse, or “near death” experiences, of several global investment corporations. These developments continue to generate landmark changes in the laws affecting financial investment, including securities and banking law. Criminal laws involving “white collar” crimes in the financial industry also have been toughened. This course will cover these major legal developments, as well as legal aspects of corporate decision-making in financial transactions such as capital structuring, mergers and acquisitions. Students will be exposed initially to basic principles of corporate law and fundamental concepts of corporate finance through actual Court cases and other assigned reading. Legal issues involving debt securities (e.g., bonds, debentures, notes and commercial paper) and equity instruments (e.g., legal distinctions between preferred and common stock, and legal aspects of dividend policy) will be explored through the study of Court cases. Litigation involving the problems of risk assessment and asset valuation also will be studied. The course will conclude with exploration of whether, and to what extent, the legal system can foster ethical behavior in the corporate environment.

Prerequisites: FIN 4200 for MBA students. No prerequisite for MSF students.