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KAFP 3835 - Management of Public Funds

Type d'enseignement : Lecture alone

Semester : Spring 2017-2018

Number of hours : 24

Language of tuition : English

Pre-requisite

The course requires students to be familiar with both Macro and Micro-economics, as well as understanding of basic concepts of Public Laws and Regulation. Knowledge in the fields of Corporate Finance, Corporate Strategy, and Regulation are warmly welcomed.

Course Description

At the era of global capitalism and digitalization, Public Funds might appear as odd, if not old-fashioned. Management of private industries through public intervention or ownership bangs as an old drum dating back to a post war era, when planning was at the heart of public macroeconomics. Yet, this approach is misleading, as Public Funds –whether “State-Owned Entreprises” (SOE), “Government-Linked Companies” (GLCs) or Sovereign Wealth Funds- account for a great portion of today's economy, not only in advanced economies but as well in emerging markets. This importance of Public Funds raises several questions: - How can we track and trace the place, weight and impact of Public Funds in the World Global economy? - How comes that Public Funds are so diverse and present whereas capitalism equals to private ownership and entrepreneurship? What do we learn on public interventions in the economy through these assets? - Are state-owned companies as efficient, innovative, successful as private ones? - The internal perspective: seen from the inside, how do CEOs and top managers succeed or fail balancing Public Policies' objectives together with those of private companies? - The market perspective: how can one set level playing fields so that private and public companies compete on fairground basis? (“economics of regulation”) This course will articulate the angled views on these Public Funds from a shareholder, a management and a regulatory perspective.

Teachers

STORCH, Olivier (Directeur financier)

Pedagogical format

The lecture is mainly composed of lessons and possibly case studies. Guest speakers might be planned occasionnally.

Course validation

Each student will be asked to complete two personal works - An oral presentation (“exposé”) OR a press review - A 2 pages memorandum on a technical point OR a book review Besides, the students will take one written examinations, serving as final exam. These exams will be structured around Q&A exercises and will be on Moodle. Work “Exposé”: - One student - One presentation of 10 minutes in PowerPoint (PPT to be sent by email to the lecturer before the session at which the presentation is made). Press Review: - Two students working together, - At the beginning of each session, about 10 minutes, 3-4 major news topics related to the theme of the session and published in the international press (also press in emerging countries) in the 3 to 4 previous weeks, in PowerPoint (PPT to be sent by email to the lecturer before the session at which the press review is presented). Note: - One student - 4 pages paper on a subject as a brief record of facts, topics and main challenges, written down as an aid to memory, in word document (word document to be sent by email to the lecturer before the session at which the note is dealt with). Book review: - Two students working together - 4 pages paper on a book with the main ideas and the thesis developed by the author(s), in word document (word document to be sent by email to the lecturer before the session at which the reading sheet is dealt with) The lecturers provide methodological assistance in the preparation of each of the works requested. To be successful, each student must get an average of 10/20 on the required works weighted as follows: Works Weight Work “Exposé” OR Press review 25% Note OR Book Review 25% Final exam 50%

Workload

The students having registered for the specific works (oral presentation, press review, note or book review) related to a given lecture will be expected an individual preparation. The rest of the class is expected to listen carefully and join the debates. All students are expected to review the main concepts and topics detailed during the lectures, so as to pass midterm and final exams.

Required reading

  • VERNIMMEN (Pierre), QUIRY (Pascal), LE FUR (Yann), Corporate Finance : Theory and Practice, John Wiley & Sons, 2014 (French edition : 2018)
  • HARARI (Yuval Noah), Sapiens : A Brief History of Humankind, Vintage, 2015
  • CUERVO-CAZURRA (Alvaro), State-owned Multinationals : Governments in Global Business, Springer International Publishing, 2017
  • LE MERLE (Matthew) Corporate innovation in the 5th Era, Cartwright Publishing, 2017
  • STUDWELL (Joe), How Asia works, Profile Books, 2014