Educational guide
IDENTIFYING DATA 2017_18
Subject ASSESSMENT OF FINANCIAL INSSTITUTIONS Code 00509038
Study programme
GRADO EN FINANZAS
Descriptors Credit. Type Year Period
6 Optional Fourth Second
Language
Castellano
Ingles
Prerequisites
Department DIREC.Y ECONOMIA DE LA EMPRESA
Coordinador
TASCÓN FERNÁNDEZ , MARÍA TERESA
E-mail mttasf@unileon.es
fjcasg@unileon.es
Lecturers
CASTAÑO GUTIÉRREZ , FRANCISCO JAVIER
TASCÓN FERNÁNDEZ , MARÍA TERESA
Web http://
General description Macroeconomic and financial industry analyses. Selection and application of valuation methods to financial firms. Business valuation report.
Tribunales de Revisión
Tribunal titular
Cargo Departamento Profesor
Presidente DIREC.Y ECONOMIA DE LA EMPRESA FANJUL SUAREZ , JOSE LUIS
Secretario DIREC.Y ECONOMIA DE LA EMPRESA AMOR TAPIA , BORJA
Vocal DIREC.Y ECONOMIA DE LA EMPRESA SIERRA FERNANDEZ , MARIA DEL PILAR
Tribunal suplente
Cargo Departamento Profesor
Presidente DIREC.Y ECONOMIA DE LA EMPRESA GONZALEZ VELASCO , MARIA DEL CARMEN
Secretario DIREC.Y ECONOMIA DE LA EMPRESA VALDUNCIEL BUSTOS , LAURA
Vocal DIREC.Y ECONOMIA DE LA EMPRESA ROBLES GONZALEZ , FRANCISCO JAVIER

Competencias
Code  
A5341
A5345
A5352
A5353
A5355
A5362
A5476
A5480
A5501
A5537
A5543
A5565
A5572
A5585
A5611
A5649
A5663
B698
B701
B702
B703
B704
B705
B706
B708
B709
B710
B711
B713
B714
B715
B717
B719
B721
C2
C3
C4

Learning aims
Competences
Identify those macroeconomic factors that affect the value of an entity and reason the effect of their future evolution. A5353
A5355
A5362
A5501
A5663
B701
B702
B706
B708
B709
B710
B711
B717
C2
C3
Analyze the effect of the cycles in the financial industry over the expected results of the financial firms. A5353
A5572
B701
B702
B704
B705
B706
B708
B709
B710
B713
B714
B717
C2
C3
Identify (in available sources) those internal and external factors of financial firms (banking, investment, insurance) that provide useful information for valuation. A5353
A5355
A5480
A5537
A5543
A5565
A5663
B701
B702
B704
B705
B706
B708
B709
B710
B713
B714
C2
C3
Analyze growth and profitability of real financial firms, starting from their value drivers; Apply the DuPont pyramid to obtain the profitability drivers. A5353
A5537
A5565
B701
B702
B704
B705
B706
B708
B709
B710
B713
B717
C2
C3
Estimate cash flows and other relevant variables for discount methods A5345
A5353
A5355
A5501
A5611
B702
B704
B705
B706
B709
B714
B715
B717
C2
C3
Apply different valuation methods to real financial firms in order to obtain their value. A5355
A5565
A5611
A5649
B704
B709
B713
B714
B715
B717
C2
C3
Select the most suitable valuation methods considering the objectives of valuation and the entity's features. A5345
A5352
A5355
A5611
A5649
B702
B704
B705
B706
B711
B713
B715
C2
C3
Elaborate a valuation report for a real financial firm. A5341
A5355
A5476
A5480
A5501
A5585
B698
B702
B703
B704
B705
B706
B709
B711
B715
B719
B721
C2
C3
C4

Contents
Topic Sub-topic
First part: The macroeconomic analysis and the financial industry 1. Globalization of the economic variables
2. Effect of the macroeconomic factors on valuation: interest rates, gross domestic product , employment, inflation, taxation, economic cycles.
3. Elements of the financial sector affecting valuation: regulation, sensibility to economic cycles, estructure and funcioning of different types of financial business
(banca, inversión, seguros).
Second part: Selection and application of valutaion methods 4. Diagnóstico de la entidad financiera: fuentes de información; factores internos y externos.
5. Value drivers: profitability and growth; desaggregation of return on equity (DuPont pyramid).
6. Most used methods in valuation of financial firms: patrimonial methods, discount methods, relative valuation real options.
Third part: The valuation report 7. Estructure of a valuation report.
8. Interpretation of the obtained values.

Planning
Methodologies  ::  Tests
  Class hours Hours outside the classroom Total hours
Practicals using information and communication technologies (ICTs) in computer rooms 20 30 50
 
Case study 5 7.5 12.5
Tutorship of group 10 15 25
 
Lecture 20 30 50
 
3 4.5 7.5
Mixed tests 2 3 5
 
(*)The information in the planning table is for guidance only and does not take into account the heterogeneity of the students.

Methodologies
Methodologies   ::  
  Description
Practicals using information and communication technologies (ICTs) in computer rooms Individual work to solve the assigned cases, applying theoretical and practical knowledge adquired during the classes. Reporting on students’ results.
Case study Gathering of real information to be applied in the cases. Selection and elaboration of that information.
Tutorship of group Tutorship oriented to the whole group in which the teacher help the students to Formulate, analyze, solve and debate a problem or exercise related to the topic of the subject.
Lecture Interactive lectures, to communicate core material and to deal with central concepts and models.

Personalized attention
 
Lecture
Practicals using information and communication technologies (ICTs) in computer rooms
Case study
Tutorship of group
Description
Traditional Tutorships: On site, at the teacher’s desk or by phone. Also by e-mail. During the teachers' assistance hours.
Tutorship of group: On site, during the practical classes, in the computer room.

Assessment
  Description Qualification
Within the process of continuous evaluation, it will contribute with 9 points as a maximum. The teacher will propose some (voluntary) individual of group activities that the student will hand in as a written work. Marks obtained may substitute a part of the final exam, at the discretion of the teacher. 9 points as a maximum
Mixed tests A final written exam will assess the assimilation of knowledge. It will contribute with 9 points as a maximum. It will be made up of theoretical questions (4 points) and practical exercises (5 points) similar to those made during the classes. 9 points as a maximum
Others Class attendance and participation will contribute with 1 point as a maximum to the final mark. To qualify participation, the teacher will take into account the documents received on the discussions, cases, exercises, etc. developed during the classes.
The final mark may be increased by making tutored works (0.5 points as a maximum), up to the total 1 point as a maximum
1 point as a maximum
 
Other comments and second call

Sources of information
Access to Recommended Bibliography in the Catalog ULE

Basic

BODIE, Z., KANE, A., AND MARCUS, A.J. (2017): Essentials of Investments, McGraw-Hill.

DAMODARAN, A. (2012): Investment Valuation: Tools and Techniques for Determining the Value of Any Asset, 3rd Edition, Wiley. Chapter 21.

DAMODARAN, A. (2013): Valuing financial services firms. The Journal of Financial Perspectives 1(1), 1-16.

FERNÁNDEZ, P. (2008): Valoración de empresas: Cómo medir y gestionar la creación de valor, Gestión 2000.

GIANFRATE, G., MASSARI, M. AND ZANETTI, L. (2014): The valuation of financial companies. Tools and techniques to measure the value of banks, insurance companies and other financial institutions, Wiley.

MATTEN, C. (2000): Managing bank capital: Capital allocation and performance measurement, John Wiley & Sons.

MILLER, W.D. (1995): Commercial Bank Valuation, John Wiley & Sons.

PALEPU, K.G., HEALY, P.M. y PEEK, E. (2016): Business Analysis & Valuation: IFRS Edition, 4th Ed., Thomson Learning.

Complementary

ANSÓN LAPEÑA, J.A. (1997): Valoración de empresas: Análisis de los métodos utilizados en la práctica, Instituto de Auditores - Censores Jurados de Cuentas de España.

ARZAC, E.R. (2005): Valuation for Mergers, Buyouts, and Restructuring, John Wiley & Sons.

ASOCIACIÓN ESPAÑOLA DE CONTABILIDAD Y ADMINISTRACIÓN DE EMPRESAS (AECA) (1989): Métodos prácticos de valoración de empresas, AECA.

ASOCIACIÓN ESPAÑOLA DE CONTABILIDAD Y ADMINISTRACIÓN DE EMPRESAS (AECA) (1989): Principios de valoración de empresas: Propuesta de una metodología, AECA.

ASOCIACIÓN ESPAÑOLA DE CONTABILIDAD Y ADMINISTRACIÓN DE EMPRESAS (AECA) (2006): Aplicabilidad del modelo de Ohlson para la valoración de acciones, AECA.

ASOCIACIÓN ESPAÑOLA DE CONTABILIDAD Y ADMINISTRACIÓN DE EMPRESAS (AECA) (2010): El análisis contable del rendimiento y la valoración de empresas: actividades financieras y operativas, AECA.

BROYLES, J. (2003): Financial Management and Real Options, John Wiley & Sons.

COPELAND, T., KOLLER, T. y MURRIN, J. (2000): Valuation: Measuring and Managing the Value of Companies, John Wiley & Sons, New York (Traducción al castellano: (2007): Valoración de empresas: Medición y gestión del valor. Ediciones Deusto).

EASTON, P.D., MCANALLY, M.L., FAIRFIELD, P.M., ZHANG, X.J. and HALSEY, R.F. (2014) Financial Statement Analysis and Valuation, 4th Ed., Cambridge Business.

FERNÁNDEZ, P. (2008): 201 errores en la valoración de empresas. Diagnóstico para conocerlos y prevenirlos. Ediciones Deusto, Barcelona.

JOHNSON, H.J. (1996): The Bank Valuation Handbook, Irwin.

KOLLER, T., M. GOEDHART Y D. WESSELS (2015): Valuation: Measuring and Managing the Value of Companies, Wiley Finance.

MARTÍNEZ CONESA, I., y GARCÍA MECA, E. (2005): Valoración de empresas cotizadas, AECA.

ONTIVEROS, E. y VALERO, F. J. (1997): Introducción al Sistema Financiero español, Civitas.

PEDRAJA GARCÍA, P. (1996): Contabilidad y análisis de balances en la Banca. Tomo I: Principios generales y contabilización de operaciones, Centro de Formación del Banco de España.

PENMAN, S.H. (2011): Accounting for Value, Columbia Business School.

PETTIT, J. (2011): Strategic Corporate Finance: Applications in valuation and Capital Structure, John Wiley & Sons.

ROJO RAMÍREZ, A. (2007): Valoración de empresas y gestión basada en valor, Thomson.

SCHROECK, G. (2002): Risk Management and Value Creation in Financial Institutions, Wiley.

TASCÓN FERNÁNDEZ, M.T. (1998): Valoración contable en los procesos de fusión y escisión: Análisis de la legislación mercantil y de la normativa profesional en la Comunidad Europea, Tesis Doctoral, Universidad de León.

TASCÓN, M.T., POLANTINOS, S. y AMOR, B. (2006): Primeros efectos del cambio de normativa contable para la valoración de las entidades financieras españolas, Partida Doble, 178, junio, pp. 50-63.


Recommendations


Subjects that it is recommended to have taken before
BANK MANAGEMENT / 00509014
ASSESSMENT OF FINANCIAL ASSETS AND COMPANIES / 00509032
 
Other comments
3 credits in Spanish and 3 credits in English will be taught.