上海交通大学：《公司金融学 Corporate Finance》课程教学资源（英文课件）01 Corporate Governance

Chapter 1 Corporate Governance

Chapter 1 Chapter 1 Corporate Governance Corporate Governance

What is Finance Finance: the study of markets and instruments that deal with cash flow over time Corporate Finance Investment Banking ■ Insurance ■ Real estate Public Finance slide 1

slide 1 What is Finance What is Finance ƒ Finance: the study of markets and instruments that deal with cash flow over time ƒ Corporate Finance ƒ Investment ƒ Banking ƒ Insurance ƒ Real estate ƒ Public Finance

The balance Sheet Current Liabilities Current Assets Long-term debt Fixed Assets Shareholders'equity slide 2

slide 2 The balance Sheet The balance Sheet Current Assets Current Liabilities Fixed Assets Long-term debt Shareholders’ equity

Key Questions In what long-lived assets should the firm invest? --Capital budgeting and expenditure How can the firm raise cash for required capital expenditure? --Capital structure How should short-term operating cash flows be managed? --Net working capital slide 3

slide 3 Key Questions Key Questions ƒ In what long-lived assets should the firm invest? --Capital budgeting and expenditure ƒ How can the firm raise cash for required capital expenditure? --Capital structure ƒ How should short-term operating cash flows be managed? -- Net working capital

Primarily a Corporate Finance Point of View SAVERS/INVESTORS Investment The Corporate Management Financial Corporation Financial Markets Manager -Real Assets -financial assets slide 4

slide 4 Primarily a Corporate Finance Point of View Primarily a Corporate Finance Point of View SAVERS/INVESTORS The Corporation -Real Assets Financial Markets -financial assets Investment Corporate Management Financial Manager

The interplay of the firm's finance with the financial market (A) Firm invests In assets (E) Financial Market (B) Short-term debt Long-term debt Current Assets (C) (F) Fixed Assets Equity Shares Government (D) slide 5

slide 5 The interplay of the firm The interplay of the firm ’s finance with the s finance with the financial market financial market ƒ (A) ƒ (E) ƒ (C) (F) Firm invests In assets (B) Current Assets Fixed Assets Financial Market Short-term debt Long-term debt Equity Shares Government (D)

The Corporate Firm The Sole Proprietorship The Partnership General partnership Limited partnership -The Corporation slide 6

slide 6 The Corporate Firm The Corporate Firm ƒ The Sole Proprietorship ƒ The Partnership General partnership Limited partnership ƒ The Corporation

The Sole Proprietorship The cheapest business No corporate income taxes,but individual income taxes Unlimited liability -The life of sole proprietorship is limited The equity money is limited to the proprietor's personal wealth slide 7

slide 7 The Sole Proprietorship The Sole Proprietorship ƒ The cheapest business ƒ No corporate income taxes, but individual income taxes ƒ Unlimited liability ƒ The life of sole proprietorship is limited ƒ The equity money is limited to the proprietor’s personal wealth

The Partnership (1) General partnership -- all partners agree to provide some fraction of the work and cash and to share the profits and losses. Limited partnerships -the liability of some of the partners to be limited thethe amount of cash each has contributed. slide 8

slide 8 The Partnership (1) The Partnership (1) ƒ General partnership -- all partners agree to provide some fraction of the work and cash and to share the profits and losses. ƒ Limited partnerships -- the liability of some of the partners to be limited the the amount of cash each has contributed

The Partnership (2) Partnerships are inexpensive and easy to form. General partners have unlimited liability. The life of general partnership is limited Raising large amount of cash is difficult ■ Personal income tax Management control reside with the general partners slide 9

slide 9 The Partnership (2) The Partnership (2) ƒ Partnerships are inexpensive and easy to form. ƒ General partners have unlimited liability. ƒ The life of general partnership is limited ƒ Raising large amount of cash is difficult. ƒ Personal income tax ƒ Management control reside with the general partners