Corporate performance evaluation (6cfu)

Objective

As business decision-makers (leaders, entrepreneurs, managers, or analysts), you will need to measure the performance of organizations and individual activities. This course aims to deepen the concept of performance and to provide students with an understanding of financial and non-financial measures of the performance of corporations. This course is also designed to prepare students to analyze and interpret financial statements effectively, combining strategic, organizational, and accounting perspectives. Students will develop the ability to (1) identify business strategies and associated risks; (2) assess reporting, and disclosure choices given the economic environment in which the organization operates; (3) use ratios and other analytical methods to evaluate and forecast performance; and (4) appreciate the potential of accounting information to assist in valuation.

Topics

 •  The logic of performance measurement 

 • Performance measurement and strategy analysis

• Performance and performance measurement systems

• Decision-making and performance (fact, value, rationality)

• Risk, risk-taking, and performance

• A framework for business analysis and valuation using financial statements

• Accounting analysis: The basics

• Accounting analysis: Accounting adjustments

• Financial analysis

• Prospective analysis: Forecasting

• Prospective analysis: Valuation theory and concepts

• Prospective analysis: Valuation implementation

• Business analysis and valuation applications

Course materials

A) Textbook: Palepu K.G., Healy P.M., Peek E. (2013), Business Analysis and Valuation: IFRS Edition, Cengage Learning, 3rd Edition, Chapters from 1 to 9.

B) Readings on performance measurement:

Mari, L. (2003), «Epistemology of Measurement». Measurement, vol. 34, n.1: 17-30.

Micheli, P, Mari, L. (2014), «The Theory and Practice of Performance Measurement». Management Accounting Research, vol. 25, n.2: 147-156.

Richard et al. (2009), «Measuring Organizational Performance: Towards Methodological Best Practice», Journal of Management, vol. 35, n. 3: 718-804.

Rerup C. (2006), «Success, Failure, and the Gray Zone: How Organizations Learn (or Don’t) from Ambiguous Experience». AOM Best Paper Proceedings.

March J.G., Shapira Z. (1987), «Managerial Perspectives on Risk and Risk Taking», Management Science, vol. 33, n. 11: 1404-1418.

Certain teaching & projects use a variety of open-source finance & economic datasets such as the Alpha Vantage API.

Teachings

Thursday, 10:00 - 12:00 Room 1D (6° Floor)

Friday, 10:00 - 12:00 Room 1D (6° Floor)

Classes are to start on February 23, 2023.

Exams dates

June 12, 2023, 8.30

July 10, 2023, 8.30

September 8, 2023, 8.30

October 16, 2023, 8.30 (reserved)

January 15, 2024, 8.30 

January 29, 2024, 8.30

The exam is written. It will include open (3) and closed questions (7) plus two exercises.