This session involves the application of modelling and simulation techniques to corporate and financial management issues, which are defined broadly to include all private sectors of an economy including financial institutions. Possible topics include, but are not limited to, the following areas:
modelling corporate, earnings and dividend processes and linkages to stock price behaviour, including market microstructure issues
the modelling and simulation of agency relationships between stake holders in the corporation and the implications for corporate behaviour, contract design and organisational structure
the modelling of asymmetric information and its implications for suppliers and users of finance, including corporate relationships with bankers, debt holders and other financial institutions
the modelling and simulation of corporate investment behaviour, including applications of real option theory to investment and financial management decisions
the modelling of corporate risk, including bankruptcy, credit spreads, loan agreements and bank portfolio decisions
the modelling and assessment of corporate performance, including profitability, and event study design
the benchmarking of financial institutions and investment fund performance, including modelling managed fund performance, the construction of portfolio benchmarks, active versus passive management, tracking error, and related issues.