Objectives and competences
To enable the student to analyse and assess the specificities and circumstances of a company in crisis and to be able to use legal and financial knowledge to enable the company to prevent crises in time or to be able to rescue the company successfully. Understand and apply corporate finance standards, legal procedures and restructuring, and understand the role of the finance function and analytics in the company.
Content (Syllabus outline)
- Legal and financial dimensions of the crisis
- Legal restructuring and financial distress
- (Pre)Insolvency proceedings
- Financial analysis of a company's business
- Techniques for classifying and predicting corporate financial crises
- Z test analysis and other attempts to classify and predict business failure
- Application of crisis prediction models and the concept of mortality in banking
- Prediction models as catalysts for constructive change
- Restructuring of claims on financiers, suppliers, workers and owners.
Learning and teaching methods
- Interactive lectures with and group discussions.
- Practical tutorial based on case studies.
- Independent research and critical study of materials.
- Practice of communication skills through presentations.
Intended learning outcomes - knowledge and understanding
Students in this course:
1. Demonstrate an understanding of key financial principles and techniques and their application to crisis management in business. Apply financial models and techniques to design and implement effective financial restructuring solutions (PILO 1a, PILO 2b),
2. acquire advanced knowledge and understanding of legal parameters, financial theories and models that are fundamental to making informed decisions in firms in crisis (PILO 2a)
3. develop a deep understanding and awareness of ethical dilemmas in the financial industry and the ability to find and apply legal and ethical solutions in the context of crisis management (PILO 4c).
4. critically evaluate financial information and data related to crisis management. Effectively communicate complex financial analysis and risk assessments to a variety of stakeholders (PILO 3a, PILO 3b).
5. Integrate and synthesise financial and legal information to develop innovative approaches to financial and legal decision-making in the context of crisis management (PILO 1a)
6. demonstrate independence, creativity and originality in analysing and solving financial and legal problems in crisis situations, taking into account relevant financial, ethical and legal frameworks (PILO 4a)
7. master how to operate in complex and unpredictable financial circumstances, following best practices and standards in risk assessment and corporate governance to ensure the ethical and sustainable development of the business (PILO 4b)
The PILO label (i.e., Programme Intended Learning Outcomes) defines the contribution of each listed intended learning outcome of a course towards achieving the general and/or subject-specific competencies or learning outcomes acquired through the programme.
Intended learning outcomes - transferable/key skills and other attributes
Students in this course:
1. Demonstrate an understanding of key financial principles and techniques and their application to crisis management in business. Apply financial models and techniques to design and implement effective financial restructuring solutions (PILO 1a, PILO 2b),
2. acquire advanced knowledge and understanding of legal parameters, financial theories and models that are fundamental to making informed decisions in firms in crisis (PILO 2a)
3. develop a deep understanding and awareness of ethical dilemmas in the financial industry and the ability to find and apply legal and ethical solutions in the context of crisis management (PILO 4c).
4. critically evaluate financial information and data related to crisis management. Effectively communicate complex financial analysis and risk assessments to a variety of stakeholders (PILO 3a, PILO 3b).
5. Integrate and synthesise financial and legal information to develop innovative approaches to financial and legal decision-making in the context of crisis management (PILO 1a)
6. demonstrate independence, creativity and originality in analysing and solving financial and legal problems in crisis situations, taking into account relevant financial, ethical and legal frameworks (PILO 4a)
7. master how to operate in complex and unpredictable financial circumstances, following best practices and standards in risk assessment and corporate governance to ensure the ethical and sustainable development of the business (PILO 4b)
The PILO label (i.e., Programme Intended Learning Outcomes) defines the contribution of each listed intended learning outcome of a course towards achieving the general and/or subject-specific competencies or learning outcomes acquired through the programme.
Readings
Obvezna študijska literatura (Compulsory textbooks):
1. Ross, S.A., Westerfield, R.W., Jaffe, J.(2015) Corporate finance, 11th ed., McGraw-Hill Education
2. Altman, E. I., Hotchkiss, E. (2010). Corporate Financial Distress and Bankruptcy: Predict and Avoid Bankruptcy, Analyze and Invest in Distressed Debt. Germany: Wiley.
3. Jovanovič, D., Bratina, B., Črešnik, D. (2023) Podjetniško (korporacijsko) in davčno pravo. 1. izd. Maribor: Založba WD: Poslovna založba, 645 str. ISBN 978-961-94599-7-3.
4. ZGD-1, ZFPPIPP, študentom je ostalo gradivo na voljo v e-obliki v spletni učilnici.
Dopolnilni viri (Additional textbooks):
5. Stubelj, I., Dolenc, P., Laporsek, S. (2016); Poslovne finance s primeri in z rešitvami, FinKin, Ljubljana
6. Brigham, E.F., Daves, P.R. (2021); Intermediate Financial Management, 14th edition, Boston, Cengage
7. Oplotnik, Z.J., Mlinarič, F. (2007); Zbornik predavanj FUVII (na voljo v e-učilnici)
8. Kodeks poklicne etike poslovnega finančnika. 2001. Ljubljana: Zveza RFRS,
9. Kodeks poslovnofinančnih načel. 1997. Ljubljana: Zveza RFRS.
10. Baze podatkov bonitetnih agencij in javnih evidenc (E-Bonitete, AJPES, ipd)
Additional information on implementation and assessment • written exam
• seminar paper
• active cooperation at lectures and tutorials
Written exam - individual written exam
Seminar paper - writing and presenting of seminar paper
Active cooperation at tutorials - short tasks based on case studies
