ENSAE Paris - École d'ingénieurs pour l'économie, la data science, la finance et l'actuariat

Corporate Finance Theory (HEC)



This course covers a wide variety of themes in Corporate Finance Theory. While Economic Theory will constitute the core of the course, we will also discuss some of the evidence supporting (or not) the theories, and link the academic work to real business decisions.


The following topics, in no particular order, should be (more than) enough to keep us busy. We will pick and choose which ones we will cover in depth :

  • Financing and Pay-out Policy
  • Behavioural Corporate Finance
  • Banking and Financial Intermediation
  • Corporate Debt Structure
  • Financial Restructurings and Bankruptcy
  • Initial Public Offerings (IPOs)
  • Mergers and Acquisitions (M&A) and Leveraged Buyouts (LBOs)
  • Corporate Finance and Product Market Competition (IO)
  • Entrepreneurial Finance and Venture Capital (VC)
  • Corporate Governance
  • CEO Pay and Implicit Incentives
  • Family Firms
  • Stock Prices and Corporate Policy
  • Corporate Finance, Law and Politics


The only required readings are the lecture notes. These will include references to academic articles for student interested in further readings on specific topics.

Good book: Tirole (2006), The Theory of Corporate Finance, Princeton University Press.