INVESTMENT MANAGEMENT AND FUNDING OF TRANSPORT COMPANIES
The course, paving on a managerial approach, aims to analyse the role of the finance function in the transport enterprises domain. The course focuses on main theoretical concepts and perspectives related to investment and financial decisions, financial planning and risk management. Moreover, the course examines indepth the most salient managerial tools for managing and supervising financial activities in shipping firms, in the port domain, in the air and rail transport sectors as well as in the cruise industry.
AIMS AND LEARNING OUTCOMES
The course, paving on a managerial approach, aims to analyse the role of the finance function in the transport enterprises domain. The course focuses on main theoretical concepts and perspectives related to investment and financial decisions, financial planning and risk management.
Moreover, the course examines in-depth the most salient managerial tools for managing and supervising financial activities in shipping firms, in the port domain, in the air and rail transport sectors as well as in the cruise industry.
Lectures, case studies and seminars.
The programme of the course includes the following issues:
PART I – GENERAL
- The evolution of the “Finance” Department: responsibilities and tasks
- Finance as a tool for supporting strategic decisions in firms: investments; evaluation process, financial criteria for evaluating business decisions (Net Present Value – NPV; Internal Rate of Return – IRR; pay back period – PBP).
- Decisions related to finance and funding: capital structure, financial leverage, financial needs, investment analysis, etc.
- Programming and controlling financial cash flows: the role of financial and managerial tools.
- Risk management: risk categories, main source of risks for firms, financial derivatives for hedging (forward contracts; futures; options; swap contracts).
PARTE II – EMPIRICAL APPLICATIONS
- Investment decisions and cash flow analysis in the shipping sector
- Shipping finance
- Financial and investment decisions for logistics and transport infrastructures (ports, airports, rail stations, logistics centres, highways, etc.), with particular emphasis on: the strategic, managerial and governance settings related to public-private partnerships; alternative source for funding and subsidies.
- Financial management for airline companies.
- Airline companies and risk management: exposure towards exchange rate risks and fuel price shifts.
- Financial dimensions related to the management of railways (infrastructures and services).
For the First Part of the course the recommended textbook is:
- Brealey R.A., Myers S.C., Allen F., 2013, Principles of Corporate Finance, Eleventh Global Edition, McGraw-Hill Education, London (UK). (Please, contact the instructor for the list of the selected Chapters).
For the Second Part of the course the recommended textbook are:
- Stopford M., 2009, Maritime Economics, Third Edition, Routledge, New York. (Chapters 6 and 7)
- Morrell P.S., 2001, Airline Finance, Second Edition, Ashgate Publishing, Aldershot (UK). (Chapters 7, 8 and 9)
- Selected resources provided by the instructor on Aulaweb.
Ricevimento: When: Wednesday at 14.30 a.m. (or by contacting the professor via e-mail) Where: Department of Economics & Business (DIEC) - level I Contacts Phone: (+39) 010209 5074 E-mail: firstname.lastname@example.org
GIOVANNI SATTA (President)
Lectures, case studies and seminars.
Written exam with open-ended questions.
The exam aims to assess the awareness and the know-how of the student concerning main issues related to financial and investment decisions in logistics and transport sector, predominantly assuming a private perspective.
Also the knowledge and core competences developed by the student with regards managerial tools for managing port-related and shipping companies, airlines and railway companies as well as firms operating in the cruise industry along with a strategic and financial perspective will be evaluated.
The exam, therefore will include both semi-structured open questions and fixed questions.
- Economia Aziendale