MOØ213 Financial Management II

Contents and structure

The main aim of this course is to provide the candidate with a tool for assessing the financial position of an enterprise. The course provides deep insight into financial statement analysis and issues related to weakness in accounting regulations (Norwegian and international) and accounting manipulation. Empirical research on the information value of accounts is a key topic. Various valuation techniques, such as pricing models and use of multipliers are presented. Under the topic of accounting-based risk measurement, models for bankruptcy risk prediction and credit scores are presented, as well as studies that focus on accounting-based measurement of systematic risk.

• Accounts as a source of information/financial statement analysis
• Weaknesses in accounting regulations and accounting manipulation
• Valuation
• Bankruptcy risk prediction and credit scores
• Analysis of profitability, solidity and liquidity
• Financing

Learning Outcome

On completion of the course the candidate:

• has gained insight into the use of accounts as a source of information.
• is familiar with the use of accounts in connection with valuations, bankruptcy risk prediction, and credit scores.

On completion of the course the candidate:

• can assess which conditions may impair the quality of accounting information, such as accounting manipulation and weaknesses in accounting regulations.
• can use accounting information to analyse profitability, solidity, liquidity and financing.

On completion of the course the candidate:

• can discuss and assess the financial position of an enterprise.

Recommended previous knowledge

The compulsory courses in business administration and financial accounting and analysis that are included in the bachelor programme in finance and administration or equivalent.

Teaching methods

Lectures and assignment reviews. The student must actively participate in the classroom sessions and must be prepared to study parts of the learning content independently or in study groups.

Compulsory learning activities

None

Assessment

Written examination, 5 hours. The examination may be digital.

Time and place for the examination will be announced at Studentweb.

Grading scale is A-F where F is fail.