International Financial Management 825
Winter Quarter 2008

INSTRUCTOR:

Ingrid M. Werner

OFFICE:

818 Fisher Hall

CLASS TIMES:

Tuesdays and Thursdays, 3:30-5:18 pm

CLASSROOM:

Gerlach Hall 355

OFFICE HOURS:

Thursdays, 3:30-5:18 pm

E-MAIL:

werner@fisher.osu.edu

PHONE:

(614) 292-6460


Class Updates
Last Updated: March 5, 2008

*Course Outline and Schedule (.pdf)
*Brief Course Description (below)
*Schedule (.htm)
*Links to International Finance Web-Sites

Slides for Session 1 and Session 2

Euro Forecasting Exercise (Due in class 1/15/2008)


Documents to Download for Registered Students

Course Outline

This course provides students with a framework for making corporate financial decisions in an international context. The course will discuss a spectrum of topics in the area of international financial management.  Examples include: how to measure currency exposure; how to structure financial and operational hedges for currency risk; how to structure a global financing program; how to raise capital in international equity and bond markets; how to structure capital budgeting analyses for foreign direct investment; how to incorporate strategic aspects in the globalization process; and how to value target firms for cross border acquisitions. The course discussions primarily focus on solving problems facing a corporate financial manager dealing with today’s global environment.  However, we also consider the challenges facing a portfolio manager or an investor allocating a global portfolio.

Target Audience 

The course is targeted primarily to second-year MBA students who are specializing in Finance by way of the Corporate Financial Management and the Investment Management Majors.  Also second-year students majoring in International Business and other non-Finance majors will find this course an excellent complement to their required course work.  MACC students who have the necessary pre-requisites are also welcome to take the course.  PhD students need to have the instructor’s permission to enroll. 

Instructor 

Ingrid Werner is an Associate Professor of Finance at Ohio State University.  She joined the university in 1998.  She has also taught at Stanford Business School, at the Wharton School, and at the Stockholm School of Economics.  She has an MBA and an Economics Licentiate degree from the Stockholm School of Economics, and a MA and a PhD in Economics from the University of Rochester.   Professor Werner does research in international finance and market microstructure.  She was the visiting research economist at the New York Stock Exchange in 1997, and the visiting academic fellow at the Nasdaq Stock Market in 2001-2002.

Pedagogy

This course uses a combination of cases, assignments, classroom lectures and discussions to convey the material.  Each student is expected to contribute regularly to classroom discussion.  This is particularly true when we work with cases, but also during lectures and general discussions.  There will be an in-class midterm during week 6, and a common final exam during the exam week.

Requirements

The prerequisite for Business Finance 825 is Business Finance 810 (Analyzing Investment Decisions) and/or Business Finance 811 (Financial Decision Making).  In addition, Business Finance 821 and 822 are recommended.

Course Evaluation

The final course grade will be allocated according to the following formula:

Individual Class Participation                                                                             20%

Four Group Case Write-Ups (the cases marked with an *)                                20%

Exams                                                                                                              60%

There will be an in-class midterm on Thursday, February 7, 2008 and a non-cumulative final exam on Tuesday, March 11, 2008 during the regular class period.

 

Course Material

The required textbook is Cheol S. Eun and Bruce G. Resnick, 2007, International Financial Management 4th edition, Irwin McGraw-Hill, Boston.  Note that you can also use the 3rd edition, but if you do, you are responsible for figuring out which page numbers to read for each class.  A packet of readings and cases will be available from Uniprint (Tuttle Parking Garage location).  Slides and other materials will be distributed over the class web-page.

Class Participation

A substantial portion of your grade (20%) will be based on class participation.  Class participation will mainly be graded based on your contributions to case discussions, but general participation in the form of questions and comments during lectures is also welcome and will be rewarded.  To facilitate record-keeping, a seating chart will be provided at the beginning of the class on Thursday, January 10, 2008.  The seating arrangement might be changed partway through the quarter.  A combination of cold-calling and soft-calling will be used to maximize participation.  Each student will be given ample opportunity to contribute to the classroom discussion.  I will monitor contributions daily, and will cold-call students who need encouragement to speak up in class.

International Finance Web-Sites:

International Financial Markets:

Stock Markets:                                   Nasdaq
                                                           NYSE (has links to all world markets)

Stock Market Indices:                         Morgan Stanley Capital International
                                                           International Finance Corporation (Emerging Markets)

Exchange Traded Index Funds:            Indexfundsonline
                                                           Nasdaq's Web-side

American Depository Receipts:            Bank of New York

Exchange Rates:                                  UBC daily and historical data
                                                           Federal Reserve Bank of New York

Currency Options:                               Philadelphia Stock Exchange
 

Resources and Readings in International Finance:

International Finance Resources:          Yahoo Finance
 

Readings in International Finance:         The Economist
                                                           Financial Times