I currently teach the Corporate Finance Master Course (Fall Semester) at the Norwegian School of Economics.
The first part of the course covers optimal capital structure theories, payout policy, and equity and debt issues. The second part of the course covers valuation methods such as the Adjusted Present Value (APV), the Weighted Average Cost of Capital (WACC), and the Flow-to-Equity (FTE) method. The third part of the course focuses on the role of (real) options for corporate finance. Aditionally, we cover more specialized topics such as risk management and mergers and acquisitions.
Over the past decade, there has been a rapid increase in the amount of assets managed by index funds. Even large mutual fund families traditionally known for their active style, such as Fidelity, have started to offer index funds. Unlike active funds, which aim at generating returns above a benchmark, index funds have the sole objective of replicating a benchmark’s returns. This raises concerns about their role in corporate governance and, consequently, the impact of the rise of passive ownership on firm value.
In my research, I try to understand the consequences of the recent developments in the asset management industry.
"Do index funds' family ties benefit the firms they own?"
- Financial Management Association (FMA) Annual Meeting 2019, New Orleans, USA
- Financial Management Association (FMA) Annual Meeting 2017, Boston, USA
Long-term finance matters because it stimulates economic growth. While the emphasis of policymakers and the donor community during the past two decades has predominantly been on enhancing financial inclusion, there is a growing realization that this is only one side of the coin. As much as inclusion is important in reaching the marginalized or informal economy, long-term financing is needed to support growth of productive activities in key economic sectors.
Since 2016, I have been a consultant for the Africa Long-Term Finance Initiative.
In cooperation with Financial Sector Deepening Africa (FSD Africa) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, the African Development Bank (AfDB) has set up the Africa Long-Term Finance Initiative. The initiative aims to enable similar progress as regards long-term finance (LTF) in Africa as has been achieved in the past decade on financial inclusion.