This Bass seminar is designed to develop students' ability to interpret and use financial accounting information in credit and equity valuation contexts. The course will focus on valuing the securities of companies undergoing significant changes as a result of litigation, restructuring, regulatory changes, mergers, spin-offs or significant industry shifts. Throughout the course, students will (1) enrich their understanding of how alternative economic, legal, political and regulatory outcomes affect the value of various components of a company's capital structure and (2) develop their ability to apply financial statement analysis to assess the likelihood and valuation implications of the events of interest. nnnEvent-driven investing follows the life cycle of companies as they revamp their corporate structures in response to economic and regulatory environments. For example, in rising economic periods companies may undertake acquisitions or spin off divisions to enhance shareholder value. During adverse environments, bankruptcy and reorganizations often reshape the capital structure by offering opportunities to create value through the restructuring process. During economic transitions, debt and equity investors may make significantly different assessments of the quality of a company's earnings, its assets, and its likelihood to meet its debt obligations. To assess the probability of corporate events, investors must make judgments about the quality of a company's earnings and assets and understand how accounting policies may influence management's representations. Investors must also interpret how accounting policies function at various points in a firm's life cycle, influencing the quality of earnings for firms differently in different economic environments. nnnIn the first half of the course, we will develop the course framework, and apply it to illustrative cases. Companies featured in past years include Tyco, AIG, CIT, Fannie Mae, Tesla, Pharmasset and Gilead and Commerzbank. Students will interpret information from companies' public financial disclosures to assess the likelihood of different events or outcomes. The course will also feature readings on current accounting standards, articles from the popular press, publicly available financial statement information, and guest speakers with in-depth knowledge of investing strategies vis a vis the case companies. nnnThe latter part of the course will be devoted to project work, with students working in teams to develop an event-driven investing strategy. The aim is to allow students to conduct independent research on a company, industry, economic context, or financial reporting environment of particular interest. Students will develop their investment idea, articulate their sense of the possible outcomes for the components of the firm's capital structure, and explain how they have assessed the likelihood and valuation consequences of those outcomes. At the conclusion of the course, students will present their strategies to the class and a panel of expert judges.
This course focuses on studying a broad set of econometric methods to conduct empirical research in Operations Management and related fields in Management Science. The course complements formal econometrics and statistics classes by focusing on the application of different econometric methods and identification strategies to research problems that are relevant in different areas within Operations Management, including Supply Chain Management, Service Operations, Healthcare and Retail. Although statistics/econometrics classes provide a rigorous revision of the methods, they put less emphasis on how to apply these methods in different settings. This course aims to fill that gap by providing a problem-oriented approach, where the focus is on identifying empirical questions relevant to Operations Management and choosing an appropriate empirical strategy to address them. The course has a seminar format combining paper presentations by students, computer assignments and a short research proposal.
This course is designed for OIT students of all cohorts. It will focus on alternative approaches to modeling the types of problems that arise in OIT research, based on the analysis of papers in the area.