AcF 702 (Advanced Topics in Corporate Finance)
Advanced Topics in Corporate Finance
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AcF 702 (Advanced Topics in Corporate Finance)
Bank Loan Contracting
Course Outline
1. Contact details
Mahmoud Gad, [email protected]
2. Course overview
During the summer term, you will participate in lectures and workshops designed to introduce
you to the key literature and research methods on which the standard dissertation topic is based.
Both during and following this taught component, you will be required to undertake
independent research that (i) reviews the academic literature relating to your chosen topic and
(ii) reports empirical evidence on the topic.
3. Key dates
5 July 2021: First draft of dissertation submitted for comments
Week commencing 2nd August 2021: Return of first draft of dissertation with comments.
Monday 6th September 2021: Deadline to submit final draft of dissertation.
4. Course objectives
The primary objective of the taught element of AcF 702 is to prepare you for the standard
dissertation topic on debt contracting. In particular, lectures and workshops aim to:
• Introduce the theoretical literature on debt contracting. This material will provide the
basis for the literature review section (Part 1) of the standard dissertation;
• Review the main data used in this research, including data collection and handling,
statistical analysis, and key research methods. This material will provide the basis for the
empirical analysis (Part 2) of the dissertation;
• Assist with the practical issues associated with producing a high quality MSc dissertation,
including dissertation content, structure and style, referencing rules, presentation of
results, etc.
5. Learning outcomes
Following completion of the taught component of AcF 702, you should:
AcF 702: Course Outline
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1. Understand the significance of debt in capital structure.
2. Understand the key theories used in debt contracting literature.
3. Know the main features of debt contracts and the role of financial covenants.
4. Be able to understand, synthesise and critique key research papers.
5. Possess a good working knowledge of the data resources, statistical methods, and
computer software required to undertake empirical research.
6. Be able to understand and handle syndicated loan data.
7. Be able to design and undertake large-sample empirical tests on the topics discussed.
6. Taught course structure
The course will consist of a series of sessions in the Summer Term. Sessions will comprise a
mixture of lectures and online workshops.
Sessions 1.1, 2.1, 3.1 and 4.1 of the course deal primarily with the theoretical and empirical
literatures. Material covered in these sessions will provide the basis for the literature review
section of the dissertation (Part 1). In some sessions, student groups will present previously
assigned papers. Presentation time is 15 minutes. Sessions 1.2, 2.2,3.2,4.2 and 5 cover practical
aspects of the standard dissertation including data, computing skills (STATA, table creating)
and research methods. In Session 6 will we will focus on the dissertation structure, writing
skills and presentation of results.
7. Dissertation Synopsis
To many of you, identifying and refining research questions could be a significant hurdle in
the dissertation writing process. To help you to manage this and other challenges, you are
encouraged to prepare a one-page “Dissertation Synopsis”. It will summarise key aspects of
your dissertation, including key literature, research questions, hypotheses, methodology and
planned sequence of Tables/Figures.
The Dissertation Synopsis will help you in two major ways. First, it will help you to focus and
structure not only your dissertation but also your dissertation writing process. Second, it will
summarise the key aspects of your dissertation and therefore facilitate the process of discussing
your ideas and problems with the course director.
You are strongly encouraged to contemplate research questions as early as possible and you
should start working on the Dissertation Synopsis no later than Session 6, when we will have
covered the majority of the literature.
You are welcome to discuss a draft of the Dissertation Synopsis.
8. Readings
A detailed list of readings for each session is provided below. Much of the reading material for
this course consists of articles published in academic journals. You should note, however, that
these reading lists are not an exhaustive list of everything that you can or should read. In your
dissertation, you should ideally show that you have identified, read and understood a wider
selection of relevant literature than that covered in this course. You may be able to find articles
published in academic journals using e-journal sites available via the university library
AcF 702: Course Outline
Useful e-journal sites are ABI/INFORM GLOBAL, Business Source Premier, ScienceDirect,
JSTOR and main journals whose articles are available in full text are as follows:
E-journal sites:
ABI/INFORM GLOBAL
- The Accounting Review
Business Source Premier
- Journal of Accounting Research
- The Journal of Finance
ScienceDirect
- Journal of Accounting and Economics
- Journal of Financial Economics
- Journal of Monetary Economics
JSTOR (www.jstor.org)
- Journal of Political Economy
Moodle/Teams:
Some course materials and links to useful web sites (including financial databases) will be
made available via Teams/Moodle. Materials will be available to students registered for the
AcF 702 dissertation. You will need your university network username and password to access
the site.
9-Lecture outline
The following section provides a detailed overview of the topics covered in each session,
together with a selection of useful readings. Please remember that the readings provided here
represent only a selection of the relevant material. One of the features of a good literature
review (Part 1) will be evidence that you have independently sourced, read, and understood
material not covered in class.
Week 1
Session 1.1
In this session, I will introduce the course and key dates. In addition, we will discuss some
practical tips on how to manage your time. We will also discuss your presentations.
Session 1.2
In this session, I will introduce you to working with Stata. More specifically, we will cover
some basic Stata commands and data management.
Week 2
Session 2.1
Introduction to the syndicated loan market
An important literature in accounting and finance examines the design of debt contracts and
debt contract terms (e.g. loan price, maturity, collateral, etc.). In addition, prior research focuses
on the determinants of syndicated loan structure (i.e. number of lenders and fraction of loan
retained by each bank). We will focus, in this session, on the theoretical framework that
explains variations in loan terms and syndicate structure.