COURSE DESCRIPTION

 

Business ethics is a specialized branch of ethics focusing on how moral standards apply to business organizations and behaviour As such, it cannot be understood separately from the general ideas of ethics, and the general ethical theories apply to business ethics as well. Normative ethical theory offers different moral theories, each prescribing a set of moral rules that individuals can apply in the process of deciding whether an action is morally right or wrong in various situations. Research on the role of ethical theories in business usually focuses on the application of ethical guidelines in human resources practices, corporate social responsibility policies and the assessment of managers’ ethical evaluations. This course is designed to provide the students with an overview of concept of business ethics and its application in decision making process in the day to day business decision making. Students will also be able to realize the importance of ethical decision making in a business organisation and its contribution towards the society.

 

COURSE OBJECTIVES

 

Understanding of the concept of business ethics and its role in modern management. Students will be able to analyse various ethical theories and the application of the same in business decisions. This course will enable the readers to identify, analyse and resolve ethical issues that arise in various business domains such as finance, marketing, human resource management and general management practices. Concepts such as corporate social responsibility and corporate governance will be discussed and an interlinkage among the concept of business ethics, corporate social responsibility and corporate governance is presented as a part of this course. The role of ethical decision making in effective business practices will be examined and analysed in detail.

 

KEY LEARNING POINTS:

 

The student will be able to:

 

1.    Understand ethical concepts and theories related to ethics. Branches of ethics and its application to business firm.

2.    Understand the interlinkage between management theories and ethical theories

3.    Analyse the steps involved in ethical decision making by managers in a business concern and resolving ethical dilemmas.

4.    Understand role of ethics in various disciplines like HR, Marketing, Finance and IT

5.    Understand the role of ethics in CSR activities of a business concern

6.    Understand the link between ethics and corporate governance.

7.    Understand the concept of sustainability in a business concern and learn how ethics is an important construct for a sustainable business concern

 

 


Course Description

This course delves into the structure, management and practices of investment banking (IB)—from larger more universal players to boutique operations. It covers the business activities of raising equity capital, valuation, financing and investment; and, the creation of value through advisory services and the choices of client business models. It looks into the business practices of private equity, hedge funds and trading operations; and, the role of each in facilitating investment, the deployment of capital and the changing face of risk-taking activities.

Performance Objectives

At the end of this course, the student should have improved competencies and specific knowledge in

  1. Understanding the emergence and development of investment banking

  2. Appreciating the varied functions of investment banks

  3. The jargon used by investment bankers

  4. The types of long term financing – equity and debt

  5. Different methods used by investment bankers to value companies

     

    No of Credits                 1.5

    No of Sessions  10

    Course Outline / Session Plan

  1. The World of Investment Banking (1 session)

  • Structure of Banking Industry, History and Major developments in investment banking, the players in the business, commercial banking and investment banking.

  1. Investment Banking Solutions (3 sessions)

  • Nature of Long Term Financing; the institutional setting for raising capital; the nature of equity, debt, and other instruments

     

  • The Business of Equity

    • Equity financing; Equity issues; Public vs. Private equity business; Initial Public Offerings; Alternative issue methods; rights issues; underwriting;

    • The role of private equity firms, Exit strategies, The venture capital elevator pitch

       

  • The Business of Debt / Fixed Income

    • Various structures of debt financing / investments, hybrid debt – equity warrants and convertibles, The perspective of the issuer, investor and investment bank, Credit-rating agencies, high-yield debt, the world of financial leverage, LBO financing model.

  1. Investment Banking Valuation Solutions (4 sessions)

  • Indirect valuation methods - Comparable Companies Analysis

  • Direct valuation methods - Discounted Cash Flow, Free Cash Flow, Adjusted Present Value; Relative valuation methods – Economic value analysis

  • Valuing companies – Case Study

  1. The Business of Trading and Secondary Markets (2 session)

  • The evolution of trading, liquidity and secondary markets, the structure of the business – brokers, traders, sales desk, Market makers, hedge funds, speculators, Volatility trading, Trading derivatives, How traders make money – spreads, positions, speculation, arbitrage and market manipulation, The new ‘boys’ on the street – dark pools, algorithmic high-frequency trading, Financing trade positions, the role of Value-at-Risk (VAR),

     

Methodology

  • Lecture based, Group discussion, Numerical problem solving

  • Case analysis

  • Course requirements include a familiarity in basic financial concepts / financial management

     

Evaluation

Assignments (4)                                                                                              40 Marks

Term Paper                                                                                                      30 Marks

Case Study Presentation                                                                                 30 Marks

Total                                                                                                              100 Marks

 

BOOKS (For reference purposes)

Hand-outs and reading material will be provided for important topics. PPTs of lectures will be distributed (as pdf files) after class.

 

In addition, below are some books for reference:

1.      J. Rosembaum and J. Pearl. Investment Banking

2.      S.A Ross, R.W. Westerfield and J.F Jaffe. Corporate Finance

3.      R. Brealey and S. Myers. Principles of Corporate Finance

Choose between 3 & 4 for the Corporate Finance books. Both these books are probably the most widely used texts in finance at the graduate level.