This course introduces participants to issues related to the financing of corporations and financial markets, including the evaluation of financial positions and ways of raising capital. Topics include the origin of firms’ financial needs and the types of financing sources, the use of financial statements to evaluate a company’s financial position and profitability, and how firms raise capital.
As part of the "Embedding communications in management" module, this course introduces participants to issues related to the financing of corporations and financial markets, including the evaluation of financial positions and ways of raising capital. Topics include the concepts of cash flow and value; the valuation of basic financial securities; the concept of informational efficiency; behavioral finance and its implications for financial communication.
Class participation is highly encouraged in this course that allows communication professionals to gain a solid understanding of the issues faced by financial managers of corporations—namely capital investment decisions and financing decisions. The key concept of informational efficiency and its implications for financial communication will be emphasized. The course begins with examination of the interplay between shareholders, managers, stakeholders and the aims of the firm and moves on to explore financial statements (income statement and balance sheet), net present value, stocks and bonds, informational efficiency and financing decisions.
By the end of the course, participants should be able to interpret financial statements in at least broad terms; understand from where a company value comes, the principles for determining the value of shares and other financial assets, and the concept of informational efficiency; and have basic knowledge of the corporate events that determine a major release of information to the public.