3504072: Investment banking

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Semester:SS 13
Scheduled in semester:2
Semester Hours per Week / Contact Hours:27.0 L / 20.5 h
Self-directed study time:54.5 h

Module coordination/Lecturers


Master's degree programme in Banking and Financial Management (01.10.2008)


  • Definition of Investment Banking
  • Going Public, IPO`s
  • The Cost of Being Public
  • The Cost of Going Public
  • Under pricing and Underperformance
  • Managing the Process Underwriting
  • Merger and Acquisitions
  • Merger Motives
  • Categories of M&A
  • Due Diligence
  • Post-Merger Integration
  • Defence Measures
  • Investment Funds
  • The Role of Investment Funds in Investment Banking
  • Hedge Funds and Private Equity Funds
  • Exchange Traded Funds
  • Stock Repurchase Programmes

Learning Outcomes

  • Demarcating investment banking
  • Evaluating initial public offerings
  • Illustrating responsibilities for capital limited by shares
  • Evaluating motives for mergers and acquisitions
  • Classifying procedures of mergers and acquisitions
  • Determining defence measures for undertakings
  • Demonstrating the role of investment funds in investment banking
  • Describing hedge funds and private equity funds
  • Justifying Exchange Traded Funds
  • Giving reasons for share buyback


Lectures Method

Interactive lecture with exercises, business-scene simulation


Required reading:

  • Hockmann, H.-J. /Thiessen, F.(Hrsg.) (2007). Investment Banking. Stuttgart: Schaeffer-Poeschel.
  • Houston, J. /James, C. (1996). Bank information monopolies and the mix of private and public debt claims. Journal of Finance, Vol. 51 No.5, pp.1863-89.
  • Ritter, J.R. /Welch, I. (2002). A Review of IPO Activity, Pricing and Allocation. In: Journal of Finance, 57 Jg. S. 1795-1828.
  • Perraudin W. /Taylor, A. P. (2002). On the consistency of ratings and bond market yields. Journal of Banking & Finance. Vol. 26. pp. 2769-2788.
  • Brennan, M. /Franks, J. (1997). Underpricing, ownership, and control in initial public offerings of equity securities in the UK. Journal of Financial Economics. Vol. 45. No.3. pp. 391-413.


Lecture slides on moodle

Exam Modalities

  • Assignment with presentation
  • Obligatory class participation


07.03.201309:00 - 16:30H4
08.03.201309:00 - 16:30H4
09.03.201309:00 - 16:30H4