The course aims to provide the student with in-depth understanding of the role and function of the financial markets in a market economy. It highlights the structure of the financial markets, interest rate formation in the economy, the significance of risk in the pricing of financial and non-financial assets, the understanding of financial imbalances and how they affect the pricing of financial assets, and risk management in financial institutions. The course also focuses on what determines corporate ownership and control structures, as well as the associations between corporate financing, ownership and control. This includes issues relating to principal-agent conflicts, agent costs for loan financing, incentive contracts, and mergers and acquisitions.

This course is only open for exchange students.