Agricultural
University of Athens
Department of Regional
& Economic Development

[6633] Investment evaluation & Financial decisions

Course Content

Funding Decision Making Framework. Capital structure theory. Capital purchases. Sources of long-term, medium-term and short-term financing. Greece, the European Union and the financing of small and medium-sized tourism enterprises. Interpretation of key financial indicators. Introduction to investment appraisal methods. Investment, growth and the role of the financial system: concept of investment, Investment planning and investment decisions. Financial development and economic development. Criteria for investment decisions under conditions of certainty, Modified Internal Rate of Return, Benefit-Cost Ratio. Special investment decisions and risk: Budgeting special investment decisions Investment budgeting and risk: return and risk, uncertain cash flows, Criteria for evaluating investments in risk status. Cost-benefit analysis: market failures and state interventions, assessment of costs and benefits within a project.

Learning results

After completing the course, it is expected that students will be able to:

To present the central characteristics of private enterprises and their basic financing needs based on these characteristics.

To expose the financing needs especially of small and medium enterprises according to the stage of their life cycle.

List alternative capital markets.

Expose the importance of considering risk in making financing decisions.

To analyze and present the basic theories of capital structure.

List and analyze sources of long-term, medium-term and short-term financing.

To present and analyze financing programs, especially for small and medium enterprises, in Greece and in the European Union.

Interpret and analyze key financial indicators of private businesses.

Analyze and present basic investment appraisal methods.

To use investment evaluation methods under certainty as a key tool in the investment decision-making process.

To explain the advantages and disadvantages of each method, as well as to interpret the results for the acceptance or rejection of an investment project.

To evaluate investment plans by incorporating risk into his analysis. He will also be able to choose the most appropriate evaluation method after he will become familiar with the advantages and limitations of each one.

The course emphasizes the sources of financing a business, especially in the first steps of its course, which play a decisive role in its evolution and subsequent development. But the financing possibilities are not only important for start-ups but also for companies that are going through a different stage of their life cycle. The main purpose of the course is for students to gain knowledge about the self-financing of businesses as well as the financial tools and financing programs that private and public organizations provide to private businesses, especially small and medium-sized, nationally, internationally and European level. In addition, students will acquire knowledge about the interpretation and analysis of economic indicators and investment evaluation methods under certainty, as a key tool in the investment decision-making process. But the course aims to convey to the student to evaluate investment plans by incorporating risk into his analysis. To be able to choose the most appropriate evaluation method, since he will become familiar with the advantages and limitations of each

Bibliography

Βασικά διδακτικά εγχειρίδια:

  • Φώτης, Π. (2015) Χρηματοοικονομική Ανάλυση Επενδύσεων: Κοινωνικο-οικονομική αξιολόγηση επενδυτικών προγραμμάτων, Αθήνα: Εκδόσεις Προπομπός
  • Θάνος, Γ. (2017) Χρηματοδότηση Επιχειρήσεων. Εκδόσεις: Τσότρας Αθανάσιος.
  • Κιόχος, Π. & Κυρμιτζόγλου Π. (2019). Χρηματοδότηση των Επιχειρήσεων. Εκδόσεις: Ελένη Κιόχου.

Ξενόγλωσση Βιβλιογραφία

  • Brayley, R. E., & McLean, D. D. (2008). Financial resource management: Sport, tourism, and  leisure services. Sagamore Pub.
  • Damodaran, A. (1996). Corporate finance. Wiley.
  • Eiteman, D. K., Stonehill, A. I., Moffett, M. H., & Kwok, C. (1989). Multinational business finance (pp. 574-575). Reading, MA: Addison-Wesley.
  • Hyytinen, A., & Väänänen, L. (2002). Government funding of small and medium-sized enterprises in Finland (No. 832). ETLA Discussion Papers, The Research Institute of the Finnish Economy (ETLA).
  • McLaney, E. (2006). Business finance: theory and practice. Pearson Education: USA.
  • Mian, A., & Sufi, A. (2018). Finance and business cycles: the credit-driven household demand channel. Journal of Economic Perspectives, 32(3), 31-58.
  • Titman, S. (2016). Financing Enterprises. Pearson: USA.
  • Young, D. R. (2017). Financing nonprofits and other social enterprises: A benefits approach.Edward Elgar Publishing.

Ενδεικτική Αρθρογραφία

  • Abdulsaleh, A. M., & Worthington, A. C. (2013). Small and medium-sized enterprisesfinancing: A review of literature. International Journal of Business and Management, 8(14), 36.
  • Cull, R., Davis, L. E., Lamoreaux, N. R., & Rosenthal, J. L. (2006). Historical financing of small-and medium-size enterprises. Journal of Banking & Finance, 30(11), 3017-3042.
  • Czarnitzki, D. (2006). Research and development in small and medium‐sized enterprises: The role of financial constraints and public funding. Scottish journal of political economy, 53(3), 335-357.
  • Mian, A., & Sufi, A. (2018). Finance and business cycles: the credit-driven household demand channel. Journal of Economic Perspectives, 32(3), 31-58.

Συναφή επιστημονικά περιοδικά

Journal of Finance

Journal of Financial Economics

Journal of Economics and Finance

Review of Financial Studies

Annual Review of Financial Economics

Review of Finance

Journal of International Money and Finance Economic Outlook

Educational Staff

Sotirios J. Trigkas

Sotirios.Trigkas@aua.gr
PhD in Accounting and Finance Panteion University Master's degree in Finance and […]

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Incorporated into the Agricultural University of Athens (AUA), Law 4589 - Government Gazette 13/A/29.01.2019. Originally it belonged to the School of Management and Economics of the former Technical University of Central Greece. 
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