ECTS credits ECTS credits: 3
ECTS Hours Rules/Memories Student's work ECTS: 51 Hours of tutorials: 3 Expository Class: 9 Interactive Classroom: 12 Total: 75
Use languages Spanish, Galician
Type: Ordinary subject Master’s Degree RD 1393/2007 - 822/2021
Departments: Financial Economics and Accounting
Areas: Financial Economics and Accounting
Center Higher Technical Engineering School
Call: Second Semester
Teaching: Sin docencia (Extinguida)
Enrolment: No Matriculable | 1st year (Yes)
The main aim of the subject is to introduce students to the main financial aspects of business management and how making them compatible with sustainability and corporate social responsibility objectives. Knowing how these concepts can affect corporate profitability and risk can help technicians and engineers to propose and design the best actions and projects for the company and to convince their Chief Executive Officers of the suitability to put them into practice. The program will review the main areas of business management, highlighting the importance of risk and innovation management, and will explain how to develop an effective financial management and how to support the strategic management of the company through the assessment of real options. Finally, the relationships between the responsible management of the company and value creation will be analysed.
UNIT 1. FUNDAMENTALS OF CORPORATE MANAGEMENT.
1.1. Business planning. Strategic tactical and operative planning.
1.2. Business organisation. Organisational structure.
1.3. Business direction. Managerial functions.
1.4. Business control. Balanced Scorecard.
1.5. Risk management.
1.6. Innovation management.
UNIT 2. FINANCIAL MANAGEMENT.
2.1. Financial planning.
2.2. Financial management.
2.3. Financial analysis.
2.4. Analysis of value creation.
UNIT 3. ASSESSMENT OF REAL OPTIONS.
3.1. Concept and types of real options.
3.2. Options assessment Methods.
3.3. Option to differ an investment.
3.4. Option to expand an investment.
3.5. Abandonment option.
3.6. Real options management.
UNIT 4. CORPORATE SUSTAINABLE MANAGEMENT VALUE CREATION
4.1. The concept of sustainability.
4.2. The concept of business social responsibility.
4.3. Relations with stakeholders.
4.4. Sustainable management and value creation.
Basic bibliography:
Brealey, R., Myers, S.; Allen, F. (2015): Principios de Finanzas Corporativas (15ª edición). McGraw Hill-Interamericana de España.
Mun, J. (2006). Real Options Analysis. Tools and Techniques for Valuing Strategic Investments and Decisions (2nd ed.). John Wiley & Sons.
Complementary bibliography:
Amram, M.; Kulatilaka, N. (1999): Real Options: Managing Strategic Investment in an Uncertain World. Harvard Business School Press.
Benninga, S. (2008): Financial Modeling, The MIT Press.
Brealey, R. y otros (2007): Fundamentos de Finanzas Corporativas (5ª edición). McGraw Hill-Interamericana de España.
Copeland, T., y Tufano, P. (2004). A real-world way to manage real options. Harvad Business Review, 82(3), 90-99.
Dávila, T. y otros (2007): La innovación que sí funciona. Deusto.
de la Fuente Herrero, G. (2005). Las opciones reales en la estrategia empresarial. El caso del Grupo Antolín. Economía Industrial, (358), 139-148.
Epstein, M.J. (2008): Making sustainability work: best practices in managing and measuring corporate social, environmental and economic impacts. Greenleaf Publishing.
Fernández Fernández, L. (coord) (2007): La práctica de las finanzas de empresa, Delta Publicaciones, Madrid.
Fernández Sánchez, E. (2010): Administración de Empresas. Un enfoque interdisciplinar. Paraninfo.
García Machado, J.J. (2001): Opciones reales: aplicaciones de la teoría de opciones a las finanzas empresariales. Pirámide
García Manjón, J.V. (2010): Gestión de la innovación empresarial: claves para ser una empresa innovadora. Netbiblo.
Hitchcock, D. y Willard, M. (2006): The business guide to sustainability: practical strategies and tools for organizations. Earthscan.
Johnson, E. (2012): Sustainability in the Chemical Industry. Springer.
Mascareñas, J. (2005): “La valoración de un proyecto biotecnológico como una opción real compuesta”, Monografías de Juan Mascareñas sobre Finanzas Corporativas.
Mascareñas, J. y otros (2004): Opciones reales y valoración de activos. Prentice Hall.
McDonald, R.L. (2006). The Role of Real Options in Capital Budgeting: Theory and Practice. Journal of Applied Corporate Finance, 18(2), 28-39.
Pindado, J. (2012): Finanzas Empresarialies. Paraninfo.
Robbins, S. y Coulter, M. (2010): Administración (10º edición). Pearson – Prentice Hall.
Rodríguez Sandiás, A. (2013): Modelos de Análisis y Valoración de Proyectos, Ed. Andavira.
Rodríguez Sandiás, A. (2016): Dirección Financiera Aplicada: Inversiones, 3ª ed. Editorial Andavira.
Romero Castro, N. (2009): Financial Implications of Sustainability for Companies and Capital Markets. Universidad de Santiago de Compostela.
Ross, Westerfield y Jaffe (2008): Finanzas Corporativas (8ª edición). Mc-Graw Hill-Interamericana de España.
Sengupta, C. (2004): Financial Modeling. John Wiley & Sons.
Smit J.T.J., y Trigeorgis, L. (2004). Strategic Investment: Real Options and Games. Princeton University Press.
Trigeorgis, L. (1998): Real Options: Managerial Flexibility and Strategy in Resource Allocation. The MIT Press.
The subject contributes to reach the competences collected in the memory of the Master’s Degree:
- General and basic skills: CB8, CG3, CG4, CG5, CG10, CG12, CG14, and, with greater intensity, CG11 and CG15.
- Specific skills: CE9.
- Transferable skills: CT2, CT3, CT5, and, with greater intensity, CT4 and CT6
The program develops the contents considered essential to provide students with the necessary skills to plan and evaluate the creation of a company. In the lecture hours teachers will focus on the most important and new concepts, making a more superficial review of those already reviewed in other subjects. During the course development teachers will make reference to the specific bibliography to use to expand the knowledges acquired in each unit. Lectures will be essentially practical, resorting to the use of real cases to exemplify and clarify theoretical concepts, or the participation of specialists on relevant issues (eg, the protection of intellectual or industrial property), using the appropriate computer tools and boosting both autonomous work and in team. The USC Virtual Campus will be used to facilitate study and work material and to the delivery of essays and the communication with the professors.
In the lecture hours the teachers will try to follow these methodological guidelines:
- To combine the logical rigor of the Economic and Financial Theory with the necessary clarity that allows a better understanding of the concepts treated, by means of the use of examples and real cases.
- Theoretical demonstrations and the mathematical construction of analysed models will be object of attention in numerous occasions with the aim of introducing the students into their knowledge before using the computer tools.
- Support of the suitable computer tools in each moment.
- Solving exercises that allow students to put into practice and check the understanding of the exposed contents.
- To promote teamwork both inside and outside the classroom.
- To promote debate and an active role in the classroom.
The development of the following activities is planned, and will contribute to the development of the following competences:
- A: Analysis of the organisational structure and innovation strategy of a company and search fo examples of intellectual or industrial property protection (CE9,CB8, CG3, CG11, CG12, CT2, CT3).
- B: Financial analysis of a company (CE9, CG11, CT3).
- C: Assessment of a biotechnology project by means of the application of the real options theory (CE9, CG10, CG11, CG15, CT3).
- D: Proposal of solutions of improvement of corporate sustainability (CG3, CG4, CG12, CG14, CG15, CT4, CT5).
Both lectures and interactive teaching will be developed at classroom, considering the possibility that, in an exceptional and justified way, virtual teaching will be combined with classroom teaching up to a maximum of 10% of the hours of the subject.
To determine the final grade in the two opportunities (March and July), a continuous assessment of the students’ learning will be developed by means of the assessment of activities, essays or projects made individually and/or in group. Likewise, the students will have to make a final exam with theoretical questions and resolution of problems that will allow an individualisation of the final mark of each student.
Distribution of the assessment weights
Exam (for the assesssment of the competences CB8, CG11, CG10, CG12, CG14, CG15 and CE9): 45%
Activities B and C (for the assessment of all the competences): 50%
Group tutorial/Teachers' report: 5%
Students with official exemption of assistance to class (following the Instruction Number 1/2017 on exemptions of assistance to class in specific circumstances of the USC General Office), will obtain their final grade with a specific final exam that will suppose 100% of the mark.
The criteria to apply in the students’ performance assessment is concreted in the following:
- Direct and systematic observation of the work developed in the classroom by the student.
- Assessment of the capacity of participation in class of the student both to formulate or answer questions and to debate on topics related with the subject.
- Final exam, to be done in the dates fixed in the official calendar of the school, with a test of 10-20 questions with only answer and a practical part with two questions of reasoning/resolution of problems.
- On the other hand, during the course a series of exercises and practical cases will be proposed, with the purpose to boost the participation of students in class and to approach theoretical knowledges to the reality of the evaluation of projects. In particular, the development of the economic-financial analysis of a company and the assessment of a biotechnology project by means of the application of real options will be requested.
The assessment system will be the same in all the opportunities (March and July and first and successive academic years).
The students will have right to a review of his final grade in the terms planned in the USC regulations.
All evaluation activities will be carried out in person and synchronously, except for those for which a delivery deadline is set.
In cases of fraudulent performance of exercises or tests, the provisions of the Regulations for the evaluation of student academic performance and review of grades will apply.
Theory: 6 hours
Seminars: 3 hours
Practice (computer room): 12 hours
Tutorials: 1 hour
Exam and revision: 2 hours
Individual work: 51 hours
Student total work: 75 hours
It is recommended a basic level of knowledge related with economy and business management and it is required basic knowledge of computer tools like text editors, spreadsheets and/or simulation software. Particularly, taking into account the fundamental role that the work on the spreadsheet plays in this subject, students should try to improve their skills both with his personal effort and doing use of the group or individualized tutorials.
It is also recommended that the student consult the wide bibliography offered to consolidate and expand the contents of the subject, especially in those points of the program in which, by reasons of time availability, is not possible to deep in the development of lectures.
The teaching will be developed in Spanish. The USC Virtual Campus will be used to facilitate study and work material to the students as well as the delivery of essays and the communication with the teachers. Excel spreadsheets will be used for the explanation and put into practice of the contents of the program.
Juan Ramon Piñeiro Chousa
Coordinador/a- Department
- Financial Economics and Accounting
- Area
- Financial Economics and Accounting
- j.pineiro [at] usc.es
- Category
- Professor: University Lecturer
| Wednesday | |||
|---|---|---|---|
| 11:00-14:00 | Grupo /CLE_01 | Spanish | Classroom A5 |
| Friday | |||
| 11:00-14:00 | Grupo /CLE_01 | Spanish | Classroom A5 |
| 02.24.2023 10:00-12:00 | Grupo /CLIS_01 | Classroom A5 |
| 02.24.2023 10:00-12:00 | Grupo /CLE_01 | Classroom A5 |
| 02.24.2023 10:00-12:00 | Grupo /CLIL_01 | Classroom A5 |
| 07.04.2023 10:00-12:00 | Grupo /CLIL_01 | Classroom A5 |
| 07.04.2023 10:00-12:00 | Grupo /CLIS_01 | Classroom A5 |
| 07.04.2023 10:00-12:00 | Grupo /CLE_01 | Classroom A5 |