Financial Statement Analysis and Business Valuation
A.Y. 2025/2026
Learning objectives
The course deals with the theme of balance sheet analysis and company valuations both from a theoretical and an applicative point of view, with reference to the main categories of companies (non-financial and banking).
The application part involves the development of the utilization capabilities of the main economic-financial databases such as AIDA and Orbis of Bureau Van Dijk and Thomson Reuter Eikon.
The application part involves the development of the utilization capabilities of the main economic-financial databases such as AIDA and Orbis of Bureau Van Dijk and Thomson Reuter Eikon.
Expected learning outcomes
Knowledge of the purposes of financial statements, valuation criteria and financial statements. Learning methodologies for evaluating economic and financial performance. Approach to problem solving. Ability to analyze different types of companies and use economic-financial databases
Lesson period: Second semester
Assessment methods: Esame
Assessment result: voto verbalizzato in trentesimi
Single course
This course can be attended as a single course.
Course syllabus and organization
Single session
Responsible
Lesson period
Second semester
Course syllabus
The goal of this course is to introduce students to the theoretical and empirical dynamics that link non-financial firms to the financial system, with a particular focus on banks. The course begins by analyzing the financial structure of firms and their financing needs, and then delves into the technical aspects of the main financing instruments offered by the financial system. Special emphasis will be placed on the study of relationship lending and the challenges posed by recent crises (the financial crisis, sovereign debt crisis, and the COVID-19 pandemic), which have often resulted in credit access constraints.
The use of data (including through economic and financial databases such as AIDA, Orbis by Bureau Van Dijk, and LSEG Data & Analytics) and real-world case studies—often presented by industry professionals—is a distinctive feature of the course.
The course is divided into two parts:
The first part is more theoretical and instructional.
The second part is seminar-based and focused on current issues.
Part I - Theoretical Foundations
Introduction to the course. The role of banks and firms in the current economic context. A comparison between relationship-based and arm's-length financial systems.
The structure of financing sources: trade-off theory versus pecking order theory - theoretical aspects.
The structure of financing sources - empirical aspects.
Information asymmetries and financial constraints. Introduction to credit rationing - theoretical and empirical aspects.
Part II - Applied and Seminar-Based
The bank-firm relationship and credit risk.
Credit granting, monitoring, and ESG criteria.
The structure of the banking system.
In-depth seminars (TBA).
The use of data (including through economic and financial databases such as AIDA, Orbis by Bureau Van Dijk, and LSEG Data & Analytics) and real-world case studies—often presented by industry professionals—is a distinctive feature of the course.
The course is divided into two parts:
The first part is more theoretical and instructional.
The second part is seminar-based and focused on current issues.
Part I - Theoretical Foundations
Introduction to the course. The role of banks and firms in the current economic context. A comparison between relationship-based and arm's-length financial systems.
The structure of financing sources: trade-off theory versus pecking order theory - theoretical aspects.
The structure of financing sources - empirical aspects.
Information asymmetries and financial constraints. Introduction to credit rationing - theoretical and empirical aspects.
Part II - Applied and Seminar-Based
The bank-firm relationship and credit risk.
Credit granting, monitoring, and ESG criteria.
The structure of the banking system.
In-depth seminars (TBA).
Prerequisites for admission
In the first part of the course, the main theoretical concepts necessary to follow the course—also without specific prerequisites—will be reviewed.
However, it is recommended that students have taken the exam in Economics of Financial Intermediaries.
However, it is recommended that students have taken the exam in Economics of Financial Intermediaries.
Teaching methods
Traditional lectures supported by PowerPoint presentations. If the number of students allows, practical exercises may be conducted using the databases indicated in the syllabus.
Teaching Resources
Gestione e regole del rapporto banca e impresa. Aspetti teorici ed evidenze empiriche
di Paola Brighi (Autore) McGraw-Hill Education, 2024
di Paola Brighi (Autore) McGraw-Hill Education, 2024
Assessment methods and Criteria
Class Attendance and Exam Information
Attendance is recommended, as specific parts of the program will be explored in greater depth during lectures, both by the instructor and by external speakers. The lecture slides are a teaching tool used by the instructor to summarize the topics covered in class. However, they do not replace the study of the textbook and the additional readings suggested by the instructor, which remain mandatory. In other words, the slides are not exhaustive of the entire course content and should be integrated with the relevant sections of the textbook and/or supplementary readings that address the topics discussed in class.
Exam Format
The exam consists of a written test structured as follows:
Open-ended questions and/or exercises worth a total of 18 points, to be completed in 40 minutes;
10 multiple-choice questions, each worth 1.5 points (total of 15 points), to be completed in 20 minutes.
No penalties are applied for incorrect or unanswered questions (i.e., wrong or blank answers receive zero points, but do not subtract from the total score).
Students who receive an insufficient grade on the written exam (i.e., 17 or below) must retake the exam.
Students who are not satisfied with their final grade may retake the written exam during any subsequent exam session. However, the new grade will automatically replace the previous one, regardless of whether it is higher or lower.
No additional or optional oral exam is offered.
Attendance is recommended, as specific parts of the program will be explored in greater depth during lectures, both by the instructor and by external speakers. The lecture slides are a teaching tool used by the instructor to summarize the topics covered in class. However, they do not replace the study of the textbook and the additional readings suggested by the instructor, which remain mandatory. In other words, the slides are not exhaustive of the entire course content and should be integrated with the relevant sections of the textbook and/or supplementary readings that address the topics discussed in class.
Exam Format
The exam consists of a written test structured as follows:
Open-ended questions and/or exercises worth a total of 18 points, to be completed in 40 minutes;
10 multiple-choice questions, each worth 1.5 points (total of 15 points), to be completed in 20 minutes.
No penalties are applied for incorrect or unanswered questions (i.e., wrong or blank answers receive zero points, but do not subtract from the total score).
Students who receive an insufficient grade on the written exam (i.e., 17 or below) must retake the exam.
Students who are not satisfied with their final grade may retake the written exam during any subsequent exam session. However, the new grade will automatically replace the previous one, regardless of whether it is higher or lower.
No additional or optional oral exam is offered.
Professor(s)