Degree Course: Administration, finance and control Syllabus for A.Y. 2019/2020  

The course presents the most common techniques conveniently adaptable to estimate the value of both the listed and unlisted private entities.
After an introduction around both the most relevant topics of the value creation theory and the concept of the economic value of the firm, the primary valuation methodologies, discussed during the course, include, first of all, the indirect methodologies that are:
- the equity-side methods based on the discount of earnings;
- the equity-side and the asset-side methods based on the discount of cash flows;
- the simple and the complex balance sheet methodology;
- the classical mixed methods, included the Union of European accounting experts (UEC) that is compared and contrasted with the Economic Value Added (EVA).

Once presented the indirect methodologies, the course deepens the direct ones, discussing their strengths and weaknesses in the evaluation process. Among the direct methods, the lessons focus on:
- the method based on the use of stock prices;
- the ratio analysis that allows valuing a firm using multiples, both asset-side and equity-side, of comparable firms;
- the method of comparable operations.

Discussion around the methodologies useful to estimate the value of the firm also covers the advantages and disadvantage of adding complexity to a valuation model and identifies various forms of biases that are inherent in most valuations. A source of complexity is due to the consideration in the evaluation process of real options. In this regard, after presenting the theoretical framework of real options, the lessons focus on the most common option pricing models other than the limitations intrinsic in the use of such instruments.
In the last part of the course, the most relevant topics that involve the preparation and the presentation of the consolidated annual reports are discussed, with particular reference to:
1) the elimination of the carrying amount of the parent’s investment in each subsidiary;
2) the combination of items of assets, liabilities, equity, revenues, expenses and cash flows of the parent with those of its subsidiaries,
3) the eliminations of any effects in the income statement and in the balance sheet related to transactions between the entities of the group.

G. Zanda, M Lacchini, T. Onesti, La valutazione delle aziende, V Edizione, Giappichelli, Torino, 2013, (integralmente, con la sola esclusione dei capitoli XIII, XV, XVII e XVIII)
A. Mechelli, Creazione di valore e stima del risultato di periodo. Principi modelli e metodologie, Giuffrè Milano, 2005, Capitoli I (limitatamente ai parr. 1.5, 1.5.1, 1.5.2 e 1.5.3), IV (limitatamente ai parr. 4.4 e 4.5), V, VI, VII, VIII e IX.
Materiale didattico a cura del docente

Definition of Corporate governance, control, governance, internal control system, internal auditing
Legal aspects relating to the internal control system
Corporate best practices on internal control and risk management system
The reference model for understanding internal controls (CoSO Cube)
Internal auditing support for corporate compliance
Methodological aspects for analysis of internal controls
The professional standards of internal auditing
Case study
Specialized seminars

Contents:
Text genre, types and Discourse Analysis. The text as a cultural, polysemic and multimodal communication tool. The course will offer an overview of current and controversial issues debated in the field of international politics and their macro-economic elements, examined from a social, philosophic and linguistic perspective. Students will be required to practice writing video reviews, analytical summaries, critiques and a short essay.
The link to the Moodle course webpage is: https://moodle.unitus.it/moodle/course/view.php?id=1227

Teaching Material:
Handouts from EAP handbooks and specialized journals, and online material uploaded with assignments on Moodle. Students who will not attend the course are encouraged to consult any handbook on academic writing, such as Writing Academic English, available in the Resources section of the Moodle page.

1. An Introduction to Econometrics
2. Probability Primer
3. The Simple Linear Regression Model
4. matrix
5. The Multiple Regression Model
6. Further Inference in the Multiple Regression Model
7. Heteroskedasticity and autocorrelation
8. Regression with instrumental variables
9. Panel Data Models
10. Empirical applications

Carter Hill William E. Griffiths Guay C. Lim. Principles of Econometrics. Fourth edition. Wiley

1. General aspects.
The financial system: markets, intermediaries, instruments, and supervisory authorities
Efficiency of financial markets
The link between non-financial and financial accounts: financial accounts of institutional sectors

2. Financial structure, financial development, and the real economy.
“Direct” and “indirect” finance
“Bank-based” and “market-based” systems
Effects on economic growth

3. Theoretical analysis of agents’ choices.
Intertemporal choices: decisions of savings
Choices under uncertainty
Expected utility theory
Risk attitude
Equilibrium
Demand for insurance
Investment in financial assets
Investment in risky assets
Optimal portfolio’s allocation (Markovitz)
The CAPM

4. Financial innovation and non-bank financial intermediation.
Securitization
Securities financing transactions
Mutual funds
Shadow banking

Teaching material provided by the instructor and available on Moodle.

Suggested textbooks:
- Garofalo G., “Economia politica. Corso intermedio con esercitazioni” (1998), Par. 1.4;
- Saltari E. e Di Pietro M., “Introduzione all’economia finanziaria” (2019), Capp. 1 (only parr. 1.1, 1.2, 1.3, 1.4), 2 (only parr. 2.1, 2.2, 2.3), 3 (only parr. 3.1, 3.2, 3.3, 3.4);
- Bodie Z., Kane A., e Markus A. J., “Investments”, McGraw Hill (2014), Capp. 6 (only parr. 6.1, 6.2, 6.4, 6.5), 7 (exclusing par. 7.5), 9 (only par. 9.1);
- Mishkin, Eakins, e Beccalli, “Istituzioni e mercati finanziari”, Pearson, 2019, ninth edition or previous ones, Chapters 1, 2, 3, 4, 5, 7, 9, 11, 14.4, 18, 19, 20, 21;

- The data sources: data classifications, population census, civil status, population register, statistical surveys, definition of the collection unit, statistical surveys, methods and techniques for collecting statistical units (face-to-face, telephone, postal) and questionnaire.
- Data sources on international migration.
- The planning of a research: the techniques for collecting statistical units, probabilistic and non-probabilistic sampling.
- Data collection and processing: data collection and classification, tabulation of results, grouping of data into classes, relative frequencies, cumulative frequencies, cumulative relative frequencies, graphical representation, average values, statistical ratios, rates and probabilities.
- The main Italian sample surveys: sampling design, non-response, multi-purpose survey system, Labour Force Survey, Household Consumption and Poverty Survey, European Survey on Income and Living Conditions (Eu-Silc).
- Some probability distributions: Bernoulli v.c., binomial, hypergeometric, sample distribution of mean, relative frequency, median.
- Statistical inference: conceptual aspects.
- Punctual estimates: concepts, properties of the estimators, average estimates, variance and relative frequency in case of Bernoullian sampling, without repetition, the estimate of frequency of randomized answers by incorrelated question.
- The interval estimation: confidence intervals for mean, frequency and variance in the case of small and large samples.
- The sample size: calculation of sample size in case of inference on averages and frequencies.
- Verification of hypothesis with a sample: identification of tests, test requirements, test steps, examples of hypothesis verification, verification of functional hypotheses in the case of large and small samples.
- Measurement of dependency relationships in the case of two or more variables: simple and multiple linear regression.

- For those who attend classes, slides are sufficient

- For those who do not attend classes:

F. Delvecchio, Statistica per la ricerca sociale, ed. 2004, Cacucci editore, Bari, cap. 1 – cap. 2 (paragraphs 1, 2, 3, 4) – cap. 3 – cap. 4 (paragraphs 1, 2) – cap. 6 – cap. 7 – cap. 8 – cap. 9 – cap. 10 – cap. 11 - cap. 12 (paragraphs 1, 2, 3), cap. 14:
https://tuscia.ifnet.it/EOSWebOPAC/OPAC/Search/AdvancedSearch.aspx

Egidi, V. & Ferruzza, A. (eds.) (2009). Navigando tra le fonti demografiche e sociali. Sistema Statistico Nazionale, Istituto Nazionale di Statistica (cap. 1, 2, 3, 4): http://omero.farm.unipi.it/matdidFarm/131/Navigando_tra_le_fonti_demografiche_sociali.pdf

Elements of probability calculus: discrete and continuous random variables (v.a.). Distribution function and probability density of a v.a. Expected value (average) and variance of a v.a. discreet and continuous. Discrete and continuous probability distributions. Bernouilli distribution, binomial, Poisson distribution, uniform, exponential, Gaussian, standard normal. Moment generating function.

Derivative securities. Arbitrage, risk and risk protection. Regulated markets and OTC. Perfect market. Cox Binomial Model Ross Rubinstein (CRR). Forward contracts, futures, floaters, swaps. Put and call options. Derivatives payoff. Profitability of an option. Put-call parity.

Option pricing: discrete model. Cox Monoperiodal Binomial Model Ross Rubinstein: detailed derivation. Absence of arbitrage. Arbitrage theorem. Delta-hedging. Risk neutral assessment. Binomial model with n periods: detailed derivation. Backward method. Generalized formula. Difference between the pricing of European and American options

Stochastic process. Markov process. Wiener process. Generalized Wiener process. Ito process. Brownian Motion. Ito lemma: detailed derivation. Stochastic differential equations. Log-normal property. Option pricing: continuous model. Model Black Scholes (BS): detailed derivation. Heat equation. BS solution. Cumulative distribution N (x). Formula for the approximate calculation of N (x). Greek letters, delta, gamma, vega, theta, rho. Relationship between the Greek letters. Hedging strategies.

Volatility. Implied volatility. Volatility smile. Stochastic volatility models: Hull-White, Scott and Stein-Stein (Ornstein-Uhlenbeck process), Ball-Rome. Cox-Ingersoll-Ross process. Heston model. Girsanov's theorem. Covariance matrix. Cholesky decomposition. Derivation of Heston equations. Solution of the Heston equations. Introduction to numerical calculation methods.
Simulations in Matlab / GNU Octave. Implementations for calculating CRR, BS and Heston model solutions

Opzioni, Futures e altri Derivati, J. Hull, Ed. Pearson, Prentice-Hall.

Growth, economic development, human development
Capitalist development and its phases
Origins and history of underdevelopment
Developing and least developed countries
Economic development and institutions
The problem of development in the history of economic thought
Theories of growth and development economics
The accumulation of capital
International trade
Income distribution, growth and development
Ecological problems and development
Capability Approach and Human Development
Innovative, sustainable and inclusive growth
Mainstream Growth Models
PostKeynesian Growth Models

The textbook is Volpi F. "Lezioni di economia dello sviluppo", FrancoAngeli, the last edition.

The course is divided into two compulsory parts: a. monetary policy and economics; exchange rate policy and economics; b. special topics in international monetary economics.
Classes will be in Italian.

Reference for first part is the Textbook P. Krugman M.
Obstfeld M. Melitz, Economia Internazionale, vol. 2 Economia Monetaria Internazionale, Pearson,
chapters 4, 8, 9, 10, 11; Masciandaro D. 2018 Central banks and Monetary Policy. Economics and
Politics. BAFFI Carefin Paper https://papers.ssrn.com/sol3/papers.cfm?abstractid = 3178576
D. Mugge 2019 The Revenge of Political Arithmetick, FickleFormulas Working Paper 2/2019
https://t.co/VhVpfTpLmU
References for the second parts will be uploaded on the course Moodle folder

Elements of microeconomics: firms and consumers, profit maximisation, utility maximisation
Perfect competition, monopoly, monopolistic competition
Market power
Game theory

Static games with complete information
Dynamic games with complete information

Oligopolistic competition

Cournot
Bertrand
Stackelberg
Hotelling
Salop

Firm's strategic behaviour

Pricing and market segmentation
Product differentiation
Advertising
Collusion
Vertically related markets and vertical restraints
Mergers
Entry and exit
Technological innovation
R&D spillovers, absorptive capacity

Oligopoly and R\&D Networks
Industrial policy: Regulation, antitrust and privatization

Belleflamme P., Peitz M. (2015) \textit{Industrial Organization: Markets and Strategies}. Cambridge University Press.

The course presents the most common techniques conveniently adaptable to estimate the value of both the listed and unlisted private entities.
After an introduction around both the most relevant topics of the value creation theory and the concept of the economic value of the firm, the primary valuation methodologies, discussed during the course, include, first of all, the indirect methodologies that are:
- the equity-side methods based on the discount of earnings;
- the equity-side and the asset-side methods based on the discount of cash flows;
- the simple and the complex balance sheet methodology;
- the classical mixed methods, included the Union of European accounting experts (UEC) that is compared and contrasted with the Economic Value Added (EVA).

Once presented the indirect methodologies, the course deepens the direct ones, discussing their strengths and weaknesses in the evaluation process. Among the direct methods, the lessons focus on:
- the method based on the use of stock prices;
- the ratio analysis that allows valuing a firm using multiples, both asset-side and equity-side, of comparable firms;
- the method of comparable operations.

Discussion around the methodologies useful to estimate the value of the firm also covers the advantages and disadvantage of adding complexity to a valuation model and identifies various forms of biases that are inherent in most valuations. A source of complexity is due to the consideration in the evaluation process of real options. In this regard, after presenting the theoretical framework of real options, the lessons focus on the most common option pricing models other than the limitations intrinsic in the use of such instruments.
In the last part of the course, the most relevant topics that involve the preparation and the presentation of the consolidated annual reports are discussed, with particular reference to:
1) the elimination of the carrying amount of the parent’s investment in each subsidiary;
2) the combination of items of assets, liabilities, equity, revenues, expenses and cash flows of the parent with those of its subsidiaries,
3) the eliminations of any effects in the income statement and in the balance sheet related to transactions between the entities of the group.

G. Zanda, M Lacchini, T. Onesti, La valutazione delle aziende, V Edizione, Giappichelli, Torino, 2013, (integralmente, con la sola esclusione dei capitoli XIII, XV, XVII e XVIII)
A. Mechelli, Creazione di valore e stima del risultato di periodo. Principi modelli e metodologie, Giuffrè Milano, 2005, Capitoli I (limitatamente ai parr. 1.5, 1.5.1, 1.5.2 e 1.5.3), IV (limitatamente ai parr. 4.4 e 4.5), V, VI, VII, VIII e IX.
Materiale didattico a cura del docente

Definition of Corporate governance, control, governance, internal control system, internal auditing
Legal aspects relating to the internal control system
Corporate best practices on internal control and risk management system
The reference model for understanding internal controls (CoSO Cube)
Internal auditing support for corporate compliance
Methodological aspects for analysis of internal controls
The professional standards of internal auditing
Case study
Specialized seminars

The Code of business crisis and insolvency in the implementation of law n. 155 of 19 October 2017, (Legislative decree of 12 January 2019, n. 14) - General principles of the reform - Alerting procedures and assisted composition of the crisis - Unitary procedure for access to the procedures for regulating the crisis or insolvency - Procedures for the composition of the over-indebtedness crisis - the arrangement with creditors - judicial liquidation

Bankruptcy law (Royal Decree 16 March 1942, n. 267) - Introduction to insolvency procedures: notion of business crisis and possible solutions. Bankruptcy: the subjects of bankruptcy - quantitative and temporal limits of being subject to bankruptcy - insolvency and the extent of defaults - the pre-bankruptcy preliminary phase - the bodies responsible for handling the bankruptcy - the burdens and the revocation of the bankruptcy - the debtor's assets (assets, rights and contractual relationships) - the reinstatement of the asset guarantee - the enforced implementation of the creditor and real claims and the insolvency regulation of the credits - the bankruptcy procedure - cessation of the bankruptcy procedure and the debts - the bankruptcy of corporations and of individuals. Negotiated regulation of the crisis: out-of-court settlement - agreement with creditors - debt-restructuring agreements. Bankruptcy crimes: fraudulent bankruptcy - simple bankruptcy - crimes committed by persons other than the bankrupt - applicable provisions in the case of an arrangement with creditors, and compulsory administrative liquidation.

Lino Guglielmucci, Diritto Fallimentare, Quinta edizione, G. Giappichelli Editore, Turin 2017
Commento al codice della crisi di impresa e dell'insolvenza by D'Arrigo, De Simone, Di Marzio and Leuzzi, published by Executivis.
Giuseppe Fauceglia, Il Nuovo Diritto della Crisi e dell'Insolvenza (d.lgs. 12 gennaio 2019, n.14) G. Giappichelli
Updated bankruptcy law (Regio Decreto 16 marzo 1942, n. 267)

For students of the master's degree course, who have already passed the Bankruptcy Law exam during the three-year degree course, the program to be prepared for the exam is the following:
Roberto Marraffa, Amministrazione straordinaria delle grandi imprese in crisi e tutela dei crediti, Giappichelli Editore, Turin 2012;

Contents:
Text genre, types and Discourse Analysis. The text as a cultural, polysemic and multimodal communication tool. The course will offer an overview of current and controversial issues debated in the field of international politics and their macro-economic elements, examined from a social, philosophic and linguistic perspective. Students will be required to practice writing video reviews, analytical summaries, critiques and a short essay.
The link to the Moodle course webpage is: https://moodle.unitus.it/moodle/course/view.php?id=1227

Teaching Material:
Handouts from EAP handbooks and specialized journals, and online material uploaded with assignments on Moodle. Students who will not attend the course are encouraged to consult any handbook on academic writing, such as Writing Academic English, available in the Resources section of the Moodle page.

-introduction to international accounting;
-worldwide accounting diversity;
-accounting approaches;
-international convergence of financial reporting;
-IFRS financial reporting;
-US GAAP financial reporting ;
-accounting standards codification;
-IFRS in the European Union;
-IFRS in the United States;
-comparative Accounting (America and Europe)

Testo di riferimento:
- A.A.V.V., Il bilancio secondo i principi contabili internazionali IAS/IFRS. Regole e applicazioni, quarta edizione, Giappichelli, 2016.
Testi di approfondimento:
-Memento Pratico. Principi contabili internazionali, Francis Lefebvre, 2018.
-Wiley GAAP 2020, Interpretation and Application of Generally Accepted Accounting Principles.
-IAS/IFRS (a cura di Dezzani, Biancone, Busso), IPSOA WOLTERS KLUWER, 2020

1. General aspects.
The financial system: markets, intermediaries, instruments, and supervisory authorities
Efficiency of financial markets
The link between non-financial and financial accounts: financial accounts of institutional sectors

2. Financial structure, financial development, and the real economy.
“Direct” and “indirect” finance
“Bank-based” and “market-based” systems
Effects on economic growth

3. Theoretical analysis of agents’ choices.
Intertemporal choices: decisions of savings
Choices under uncertainty
Expected utility theory
Risk attitude
Equilibrium
Demand for insurance
Investment in financial assets
Investment in risky assets
Optimal portfolio’s allocation (Markovitz)
The CAPM

4. Financial innovation and non-bank financial intermediation.
Securitization
Securities financing transactions
Mutual funds
Shadow banking

Teaching material provided by the instructor and available on Moodle.

Suggested textbooks:
- Garofalo G., “Economia politica. Corso intermedio con esercitazioni” (1998), Par. 1.4;
- Saltari E. e Di Pietro M., “Introduzione all’economia finanziaria” (2019), Capp. 1 (only parr. 1.1, 1.2, 1.3, 1.4), 2 (only parr. 2.1, 2.2, 2.3), 3 (only parr. 3.1, 3.2, 3.3, 3.4);
- Bodie Z., Kane A., e Markus A. J., “Investments”, McGraw Hill (2014), Capp. 6 (only parr. 6.1, 6.2, 6.4, 6.5), 7 (exclusing par. 7.5), 9 (only par. 9.1);
- Mishkin, Eakins, e Beccalli, “Istituzioni e mercati finanziari”, Pearson, 2019, ninth edition or previous ones, Chapters 1, 2, 3, 4, 5, 7, 9, 11, 14.4, 18, 19, 20, 21;

- The data sources: data classifications, population census, civil status, population register, statistical surveys, definition of the collection unit, statistical surveys, methods and techniques for collecting statistical units (face-to-face, telephone, postal) and questionnaire.
- Data sources on international migration.
- The planning of a research: the techniques for collecting statistical units, probabilistic and non-probabilistic sampling.
- Data collection and processing: data collection and classification, tabulation of results, grouping of data into classes, relative frequencies, cumulative frequencies, cumulative relative frequencies, graphical representation, average values, statistical ratios, rates and probabilities.
- The main Italian sample surveys: sampling design, non-response, multi-purpose survey system, Labour Force Survey, Household Consumption and Poverty Survey, European Survey on Income and Living Conditions (Eu-Silc).
- Some probability distributions: Bernoulli v.c., binomial, hypergeometric, sample distribution of mean, relative frequency, median.
- Statistical inference: conceptual aspects.
- Punctual estimates: concepts, properties of the estimators, average estimates, variance and relative frequency in case of Bernoullian sampling, without repetition, the estimate of frequency of randomized answers by incorrelated question.
- The interval estimation: confidence intervals for mean, frequency and variance in the case of small and large samples.
- The sample size: calculation of sample size in case of inference on averages and frequencies.
- Verification of hypothesis with a sample: identification of tests, test requirements, test steps, examples of hypothesis verification, verification of functional hypotheses in the case of large and small samples.
- Measurement of dependency relationships in the case of two or more variables: simple and multiple linear regression.

- For those who attend classes, slides are sufficient

- For those who do not attend classes:

F. Delvecchio, Statistica per la ricerca sociale, ed. 2004, Cacucci editore, Bari, cap. 1 – cap. 2 (paragraphs 1, 2, 3, 4) – cap. 3 – cap. 4 (paragraphs 1, 2) – cap. 6 – cap. 7 – cap. 8 – cap. 9 – cap. 10 – cap. 11 - cap. 12 (paragraphs 1, 2, 3), cap. 14:
https://tuscia.ifnet.it/EOSWebOPAC/OPAC/Search/AdvancedSearch.aspx

Egidi, V. & Ferruzza, A. (eds.) (2009). Navigando tra le fonti demografiche e sociali. Sistema Statistico Nazionale, Istituto Nazionale di Statistica (cap. 1, 2, 3, 4): http://omero.farm.unipi.it/matdidFarm/131/Navigando_tra_le_fonti_demografiche_sociali.pdf

Section A: General part

1) Introduction to the basis of planning and control in public sector organizations
2) Typical aspects of decision-making, management, strategic and management control in public sector organizations
3) Introduction to Accounting in the public sector
4) Performance management and performance measurement

1) Pavan A., Reginato E., Programmazione e controllo nelle amministrazioni pubbliche, Giuffrè, 2012 (Chapter 1, Chapter 2, § 3.8, § 4.1, § 4.2, § 4.5, § 4.6, § 5.1).
2) Teaching materials available on the course web site

Section B: monographic theme
1) Planning and Control in Central Governments and Local Government Entities
2) Planning and Control in Public Healthcare Organizations and Hospitals
3) Planning and Control in Public Higher Education Institutions

1) Pavan A., Reginato E., Programmazione e controllo nelle amministrazioni pubbliche, Giuffrè, 2012 (Chapter 1, Chapter 2, § 3.8, § 4.1, § 4.2, § 4.5, § 4.6, § 5.1).
2) Teaching materials available on the course web site

The course focuses on the process of analyzing the company's fundamental value, the phases of which culminate in the preparation of the pro-forma or pro-forma financial statements (Balance Sheet, Income Statement and Cash Flow Statement), which represents a crucial step in this analysis.
In the first part, the course focuses attention on the reclassification models of the financial statements, on the indices and flows. In the second part, the course deals with the construction and analysis of the budget. This is a financial statement prepared by translating certain hypotheses for future management operations into economic and financial quantities. The use of this tool allows you to recreate, as in a sort of laboratory, the business operation and to simulate the effects that different management policies are destined to produce in the future on the economic, financial and equity structures of the company. The logic of the budget estimate finds multiple areas of use. It applies, in fact:
- to companies already in operation, to guide future management programs;
- in project financing operations, which are increasingly numerous today, to judge the self-sustainability of the planned initiative;
- to companies being set up or starting a new company branch (start up), to identify the most appropriate management structures;
- to individual investment projects, to judge their feasibility and convenience.

Summary of topics.
Among the topics that will be treated in the context of the budget analysis for the construction of the pro-forma, we note:
• the logic of reclassification of the balance sheet and income statement;
• the logical construction plan of the Cash Flow Statement;
• the estimate of the EBITDA and the MON;
• the estimate of the commercial net working capital (CCNc);
• the budget for operational self-financing;
• the free cash flow estimate (FCF);
• the estimate of the Net Invested Capital (CIN);
• the estimate of the Net Financial Position (NFP);
• the estimate of the financial requirement.

Among the topics that will be dealt with in the context of the construction of the pro-forma and its evaluation, the following should be noted:
• the general logic and phases of the construction of the pro-forma;
• the basic pro-forma model;
• the development of the basic model: current operating management, structural operational investments and the financial structure;
• the formulation of assumptions: the forecast of sales, operating costs and net working capital, structural investments;
• assessment of assumptions;
• sensitivity analysis;
• the financial sustainability of the pro-forma and its "bankability".

To prepare for the exam, the student has a textbook and other teaching materials prepared by the teacher and delivered during the lessons.

The textbook is:
F. Giunta-M. Pisani, Analysis of the financial statements, APOGEO, Maggioli Editore, 2016.

Chapters of the book:
1. Fundamental analysis and intrinsic value of the company (to be studied)
2. The information base for fundamental analysis
3. Analysis of the competitive environment
4. Analysis of strategies
5. Verification of accounting quality and information collected (to be studied)
6. The management analysis model (to be studied)
7. Budget comparisons
8. The reclassification of the Balance Sheet (to be studied)
9. Reclassification of the Income Statement (to be studied)
10. Preparation of the Financial Statement (to be studied)
11. Business growth (to be studied)
12. Operational profitability (to be studied)
13. Creditworthiness (to be studied)
14. Net profitability (to be studied)
15. Analysis of the consolidated financial statements
16. The pro-forma financial statements: rationale, phases and necessary information (to be studied)
17. The pro-forma financial statements: hypotheses and calculation formulas (to be studied)
18. Evaluation of the pro-forma financial statements

1) Knowledge and understanding Knowing the tools of analysis, about groups accounts, extraordinary operations (M&A) and financial statements analysis both in their theoretical construction and in their implementation. Civil code regulation, national and international financial reporting standards. 2) Applied knowledge and understanding Learning of group analysis tools, extraordinary operations (M&A) and interpreting financial statements. Analysis of case studies. 3) Autonomy of judgment To be able to apply instruments for analyzing business groups, extraordinary transactions (M&A) in a critical and independent way in order to be able to write a report on financial position and performance of operations of a group of companies. 4) Communication skills To be able to express the results of a group of companies analyses, extraordinary transactions (M&A) by preparing a report and accounting documents. 5) Ability to learn Reading published accounting information of business groups in order to express an assessment of the financial positions and performance evaluation.

A. Montrone, Il bilancio consolidato dei gruppi aziendali, F. Angeli, II edizione, 2018. I seguenti capitoli sono inclusi nel programma: I, V escluso par. 6, VI, VII, VIII.
C. Corsi, P. Farinon, Le operazioni straordinarie d’impresa, Giappichelli Editore, II edizione, 2018. I seguenti capitoli sono inclusi nel programma: I escluso par. 1.5., II, III.

The course presents the most common techniques conveniently adaptable to estimate the value of both the listed and unlisted private entities.
After an introduction around both the most relevant topics of the value creation theory and the concept of the economic value of the firm, the primary valuation methodologies, discussed during the course, include, first of all, the indirect methodologies that are:
- the equity-side methods based on the discount of earnings;
- the equity-side and the asset-side methods based on the discount of cash flows;
- the simple and the complex balance sheet methodology;
- the classical mixed methods, included the Union of European accounting experts (UEC) that is compared and contrasted with the Economic Value Added (EVA).

Once presented the indirect methodologies, the course deepens the direct ones, discussing their strengths and weaknesses in the evaluation process. Among the direct methods, the lessons focus on:
- the method based on the use of stock prices;
- the ratio analysis that allows valuing a firm using multiples, both asset-side and equity-side, of comparable firms;
- the method of comparable operations.

Discussion around the methodologies useful to estimate the value of the firm also covers the advantages and disadvantage of adding complexity to a valuation model and identifies various forms of biases that are inherent in most valuations. A source of complexity is due to the consideration in the evaluation process of real options. In this regard, after presenting the theoretical framework of real options, the lessons focus on the most common option pricing models other than the limitations intrinsic in the use of such instruments.
In the last part of the course, the most relevant topics that involve the preparation and the presentation of the consolidated annual reports are discussed, with particular reference to:
1) the elimination of the carrying amount of the parent’s investment in each subsidiary;
2) the combination of items of assets, liabilities, equity, revenues, expenses and cash flows of the parent with those of its subsidiaries,
3) the eliminations of any effects in the income statement and in the balance sheet related to transactions between the entities of the group.

G. Zanda, M Lacchini, T. Onesti, La valutazione delle aziende, V Edizione, Giappichelli, Torino, 2013, (integralmente, con la sola esclusione dei capitoli XIII, XV, XVII e XVIII)
A. Mechelli, Creazione di valore e stima del risultato di periodo. Principi modelli e metodologie, Giuffrè Milano, 2005, Capitoli I (limitatamente ai parr. 1.5, 1.5.1, 1.5.2 e 1.5.3), IV (limitatamente ai parr. 4.4 e 4.5), V, VI, VII, VIII e IX.
Materiale didattico a cura del docente

Part I: Risk management.
Market risk. Definition, parametric VaR and empirical estimation of variances and covariances.
Simulation Monte Carlo, historical simulation
Stress testing and Backtesting
The limits of VaR and the expected shortfall
II part: applications for the Market Risk
Non-frontal activity _ review of topics from previous exams (financial engineering, statistics for finance, VBA): volatility estimation, correlations, vol estimation models, VBA MATLAB).
Quantitative insights for risk management
Downside risk in non-Normal contexts: Filtered Historical, Cornish-Fisher, t-distribution and EVT.
RM for portfolios with complex optional content - Beyond BSM: Local Vol Models, Displaced Diffusion and CEV. Stochastic volatility valuation models: Heston, SABR. Volatility surface estimation for equity and FX.

A. RESTI, A. SIRONI, Rischio e valore nelle banche, Milano, EGEA, 2008.
Teaching materials by the teachers available on the course website in Moodle

Part I: Risk management.
Market risk. Definition, parametric VaR and empirical estimation of variances and covariances.
Simulation Monte Carlo, historical simulation
Stress testing and Backtesting
The limits of VaR and the expected shortfall
II part: applications for the Market Risk
Non-frontal activity _ review of topics from previous exams (financial engineering, statistics for finance, VBA): volatility estimation, correlations, vol estimation models, VBA MATLAB).
Quantitative insights for risk management
Downside risk in non-Normal contexts: Filtered Historical, Cornish-Fisher, t-distribution and EVT.
RM for portfolios with complex optional content - Beyond BSM: Local Vol Models, Displaced Diffusion and CEV. Stochastic volatility valuation models: Heston, SABR. Volatility surface estimation for equity and FX.

A. RESTI, A. SIRONI, Rischio e valore nelle banche, Milano, EGEA, 2008.
A. Resti, A. Sironi, Basilea 3 e 3.5: le principali novità, capitolo 26, Rischio e valore nelle banche.
A. Sironi, The evolution of banking regulation since the financial crisis: a critical assessment, Working Paper, November 2018
Teaching materials by the teachers available on the course website in Moodle

Contents:
Text genre, types and Discourse Analysis. The text as a cultural, polysemic and multimodal communication tool. The course will offer an overview of current and controversial issues debated in the field of international politics and their macro-economic elements, examined from a social, philosophic and linguistic perspective. Students will be required to practice writing video reviews, analytical summaries, critiques and a short essay.
The link to the Moodle course webpage is: https://moodle.unitus.it/moodle/course/view.php?id=1227

Teaching Material:
Handouts from EAP handbooks and specialized journals, and online material uploaded with assignments on Moodle. Students who will not attend the course are encouraged to consult any handbook on academic writing, such as Writing Academic English, available in the Resources section of the Moodle page.

Elements of probability calculus: discrete and continuous random variables (v.a.). Distribution function and probability density of a v.a. Expected value (average) and variance of a v.a. discreet and continuous. Discrete and continuous probability distributions. Bernouilli distribution, binomial, Poisson distribution, uniform, exponential, Gaussian, standard normal. Moment generating function.

Derivative securities. Arbitrage, risk and risk protection. Regulated markets and OTC. Perfect market. Cox Binomial Model Ross Rubinstein (CRR). Forward contracts, futures, floaters, swaps. Put and call options. Derivatives payoff. Profitability of an option. Put-call parity.

Option pricing: discrete model. Cox Monoperiodal Binomial Model Ross Rubinstein: detailed derivation. Absence of arbitrage. Arbitrage theorem. Delta-hedging. Risk neutral assessment. Binomial model with n periods: detailed derivation. Backward method. Generalized formula. Difference between the pricing of European and American options

Stochastic process. Markov process. Wiener process. Generalized Wiener process. Ito process. Brownian Motion. Ito lemma: detailed derivation. Stochastic differential equations. Log-normal property. Option pricing: continuous model. Model Black Scholes (BS): detailed derivation. Heat equation. BS solution. Cumulative distribution N (x). Formula for the approximate calculation of N (x). Greek letters, delta, gamma, vega, theta, rho. Relationship between the Greek letters. Hedging strategies.

Volatility. Implied volatility. Volatility smile. Stochastic volatility models: Hull-White, Scott and Stein-Stein (Ornstein-Uhlenbeck process), Ball-Rome. Cox-Ingersoll-Ross process. Heston model. Girsanov's theorem. Covariance matrix. Cholesky decomposition. Derivation of Heston equations. Solution of the Heston equations. Introduction to numerical calculation methods.
Simulations in Matlab / GNU Octave. Implementations for calculating CRR, BS and Heston model solutions

Opzioni, Futures e altri Derivati, J. Hull, Ed. Pearson, Prentice-Hall.

1. General aspects.
The financial system: markets, intermediaries, instruments, and supervisory authorities
Efficiency of financial markets
The link between non-financial and financial accounts: financial accounts of institutional sectors

2. Financial structure, financial development, and the real economy.
“Direct” and “indirect” finance
“Bank-based” and “market-based” systems
Effects on economic growth

3. Theoretical analysis of agents’ choices.
Intertemporal choices: decisions of savings
Choices under uncertainty
Expected utility theory
Risk attitude
Equilibrium
Demand for insurance
Investment in financial assets
Investment in risky assets
Optimal portfolio’s allocation (Markovitz)
The CAPM

4. Financial innovation and non-bank financial intermediation.
Securitization
Securities financing transactions
Mutual funds
Shadow banking

Teaching material provided by the instructor and available on Moodle.

Suggested textbooks:
- Garofalo G., “Economia politica. Corso intermedio con esercitazioni” (1998), Par. 1.4;
- Saltari E. e Di Pietro M., “Introduzione all’economia finanziaria” (2019), Capp. 1 (only parr. 1.1, 1.2, 1.3, 1.4), 2 (only parr. 2.1, 2.2, 2.3), 3 (only parr. 3.1, 3.2, 3.3, 3.4);
- Bodie Z., Kane A., e Markus A. J., “Investments”, McGraw Hill (2014), Capp. 6 (only parr. 6.1, 6.2, 6.4, 6.5), 7 (exclusing par. 7.5), 9 (only par. 9.1);
- Mishkin, Eakins, e Beccalli, “Istituzioni e mercati finanziari”, Pearson, 2019, ninth edition or previous ones, Chapters 1, 2, 3, 4, 5, 7, 9, 11, 14.4, 18, 19, 20, 21;

1
PLAIN VANILLA OPTIONS. Plain vanilla options, definitional aspects. The opening of long and short positions in options (long and short call, long and short put). The Building Block. Lego Approach. Intrinsic value and time value. The intrinsic value and moneyness of the option. The factors that determine the time value. The American-style option and early exercise. The put-call parity. The put-call parity for European-style options. The put-call parity for American-style options.

2
MODELS OF OPTION VALUATION. Introduction. The dynamics of stock prices. The formula of Black and Scholes with and without the presence of dividends. Estimation of volatility. The historical volatility. Empirical rules on volatility. Implied volatility. The volatility smile. The relationship between the distribution of returns and the smile. The binomial model with n steps. The hypotheses at the base of the model. The Monte Carlo simulation. Definition of the number of run of the simulation. The generation of random numbers. The method of the inverse transformation.

3
THE GREEKS AND THE DELTA HEDGING. The Greeks. The delta. The gamma. The vega. The rho. Theta. Use of the Greeks: a summary example. The Greeks of a portfolio of options. Option book hedging. Dynamic delta hedging. Delta-gamma hedging. Delta-vega hedging. Delta-gamma-vega hedging. Higher order greeks. The Vanna. The Volga. Vomma (or gamma-vega. volgamma). The delta bleed (charm). The calculation of sensitivities using Monte Carlo simulation: finite difference method.

4
COMPLEX STRATEGIES. The Building Block Approach. The bull spread (call spread, bullish vertical spread). The collar. The straddle. The strangle. The butterfly.

5
ASIAN OPTIONS. Asian options (or average options). The put-call parity for Asian options. The factors affecting the payoff (and price). The type of average. The sampling frequency. The period of calculation of the average. The weight attributed to the individual surveys. The evaluation of average price options with geometric average. Geometric mean and continuous monitoring of the mean (Kemna and Vorst). Geometric average and discrete monitoring of the average (Haug, Haug and Margrabe). The case of non-constant periodicity between successive fixings. The evaluation of options with arithmetic mean. Arithmetic mean and continuous monitoring of the mean (Turnbull Wakeman model). Arithmetic mean and continuous monitoring of the mean (Levy approximation).

6
ASIAN OPTIONS. Vorst's model. Arithmetic mean and discrete mean monitoring (Levy modified by HHM). Curran's approximation. Asian options pricing and the volatility term structure. The binomial model and Asian options. The Monte Carlo simulation. The payoff and the sensitivities of the Asian option. The delta hedging of the Asian options. Delta hedging of average price options. Delta hedging of the average strike options. Static hedging of the Asian option. Use of Asian options.



7)
BINARY OPTIONS. Binary options: cash or nothing, asset or nothing, gap. Binary options: European and American style. Use of binary options. The analytical evaluation of European binary options. Asset or nothing pricing. Cash or nothing pricing. The gap option pricing.

8
BINARY OPTIONS. The analytical evaluation of the American binary options (one touch deferred binary). Payoffs and sensitivities of digital options. Hedging techniques for European binary options. Payoffs and sensitivities of American digital options. The hedging of one touch options. One touch digital delta hedging. The static replication of digital one touch.

9
BARRIER OPTIONS. Types of barrier options. Barrier parity. Use of barrier options. Valuation of European barrier options The closed formula of Rubinstein and Reiner. Evaluation of knock-in barriers. Valuation of knock-out barriers. The binomial model and barrier options. Evaluation of barrier options with Monte Carlo. Valuation of American barrier options The closed formula of Haug. The risks of barrier options. Payoffs and sensitivities of regular barrier options. Greeks of down and in call. Greeks of up and in put. Greeks of the down and out call. Greeks of the up and out put.

10
BARRIER OPTIONS. Hedging regular barrier options: static replication techniques. The replication of the knock-down & in option. The replica of the knock-down & out option. Static replication and put-call symmetry. Static replication - Overcoming the basic assumptions. The payoffs and sensitivities of barrier-reverse options. The greeks of the up and in call (HK). Greeks of the up and out call (HK). The methodologies of risk mitigation of the reverse knock out. The choice of the volatility parameter. The coverage of the reverse knock in/out.

11
FORWARD START AND CLIQUET OPTIONS. Forward start options. Forward start options: the valuation in closed formula. The pricing of forward start options: some key factors. The calculation of the forward implied volatility. The payoff and the sensitivity of the forward start option. Cliquet options. The valuation of the closed formula cliquet. The binomial model. The payoff and sensitivity of the cliquet options. Types of cliquet structures. The simple cliquet bond. Cliquet bond with barrier. The pure digital cliquet bond. The reverse cliquet bond. The protected reverse cliquet bond. Structured Napoleon. Reverse cliquet and Napoleon: critical aspects.




12
LOOKBACK OPTIONS. Fixed and floating strike lookback options. The pricing of the lookback options. The valuation of floating strike lookback calls. The analytical formula of Goldman, Sosin & Gatto. The valuation of fixed strike lookback calls. Payoff and sensitivity of lookback options. Static replication of lookback options. The use of lookback options.

13
OPTIONS ON TWO UNDERLYINGS AND MULTI-ASSET OPTIONS. Types of multi-asset options. Mountain Range Options. Multiasset options Pricing issues. Exchange-one-asset-for-another options. The variables that affect the value of the option. Analytical valuation. Spread options. Variables affecting the value of the option. Analytical valuation. Use of spread options. Best of and worst of options (or min-max options). Min-max options The analytical valuation. The role of correlation in the value of best of and worst of options. Correlation risk in best of options. Correlation risk in worst of options.

14
THE VOLATILITY SURFACE FOR FX OPTIONS- Criteria for efficient and convenient representation of the volatility surface; approaches to constructing the surface, interpolation of the smile between strikes: the Vanna-Volga approach, calculation of Vanna-Volga weights and option pricing, construction of the volatility matrix in practice; extensions of the Vanna-Volga model.

15
VOLATILITY TRADING Options and trading, Call overwriting; Hedging strategies with options, complex options; Volatility trading with options; Variance and volatility; volatility, variance and gamma swaps; options on variance; the relationship between IV and realized volatility; Forward Start products and vol indices; Light exotics. Relative value & correlation trading: trades on earnings announcements/jumps; Skew & Term Structure trades: the relationship between skew and term structure; the "Square root of time" rule; Term structure trading; Measurement of skew and smile; skew trading.

16
STOCHASTIC VOLATILITY OPTION VALUATION MODELS.
The model of Heston The SABR model and the volatility surfaces
17
Interest rates: valuation of interest rate derivatives. Curve estimation with pre-2008 and dual method. Interest rate hedging for corporate clients
18
FX derivatives: valuation of FX derivatives. Curve estimation with Vanna Volga . FX hedging for corporate clients

Teaching materials available on the course site
Academic and Professional Articles
Exotic Options and Hybrids: A Guide to Structuring, Pricing and Trading (The Wiley Finance Series Book 507) (English Edition) 1st Edition, English Edition by Mohamed Bouzoubaa , Adel Osseiran

The course is divided into two compulsory parts: a. monetary policy and economics; exchange rate policy and economics; b. special topics in international monetary economics.
Classes will be in Italian.

Reference for first part is the Textbook P. Krugman M.
Obstfeld M. Melitz, Economia Internazionale, vol. 2 Economia Monetaria Internazionale, Pearson,
chapters 4, 8, 9, 10, 11; Masciandaro D. 2018 Central banks and Monetary Policy. Economics and
Politics. BAFFI Carefin Paper https://papers.ssrn.com/sol3/papers.cfm?abstractid = 3178576
D. Mugge 2019 The Revenge of Political Arithmetick, FickleFormulas Working Paper 2/2019
https://t.co/VhVpfTpLmU
References for the second parts will be uploaded on the course Moodle folder