LV EN RU DE FR

Course code Ekon5108

Credit points 4.50

Financial Management

Total Hours in Course120

Number of hours for lectures24

Number of hours for seminars and practical classes12

Independent study hours84

Date of course confirmation16.02.2022

Responsible UnitInstitute of Economics and Finance

Course developer

author Ekonomikas un finanšu institūts

Romēna Šulca

Dr. oec.

Prior knowledge

Ekon5159, Finance and Accounting

Replaced course

EkonM010 [GEKOM010] Financial Management

Course abstract

The study course provides in-depth knowledge and practical skills in understanding the economic processes and financial management of the company, which are necessary for planning the company's operations and determining the best way of financing the company. During their studies, students will gain knowledge in the field of forecasting and analysis of financial statements in accordance with international requirements. The study course provides knowledge of the most important theories and practical aspects of international finance and settlement, the use of Incoterms in international trade transactions and their practical application in international contracts for the supply of goods.

Learning outcomes and their assessment

1. Knows and understands the current international financial management integration processes. Permanent job. Exam.
2. Is able to show structured knowledge about the application of financial management methods in the company's management, how to organize financial management based on increasing the company's value and operational efficiency. Permanent job. Exam.
3. Knows and understands financial management as a management tool for ensuring economic activity. Test with calculations.4.Knows and understands payment methods, international trade rules Incoterms. Test with calculations.
4. Able to analyse the world financial and monetary cooperation and integration processes, their impact on the company's financial management. Independent work, discussions in classes.
Able to calculate the value of a company to improve its performance. Tests with calculations, calculations in classes.
5. Is able to argue about the strategic importance of financial management. Independent work, discussions in classes.
6. Able to calculate and interpret financial and economic indicators of companies. Tests with calculations, calculations in classes.
7. Understands and knows the company's financial management methods. Independent work, discussions in classes.
8. Understands the importance of foreign exchange transactions in market economy in international trade. Independent work, discussions in classes
9. Able to responsibly plan and solve assigned tasks. Permanent job.
10. Able to participate in classes and take responsibility for work results and their analysis. Able to present the results of independent work. Independent work, presentation.
11. Is able to recognize and principally explain modern theoretical concepts and models of financial management, their advantages and disadvantages. Independent works, presentations.
12. Is able to practically apply the acquired theoretical knowledge and practical skills on international trade rules, principles, exchange rates and their impact on international trade transactions, the use of derivative financial instruments. Independent works, presentations.

Course Content(Calendar)

1. The place of financial management in the company's management. (lectures 3 hours).
2. Financial analysis and its role in financial management decision making. Financial analysis and its role in financial management decision making. Use of selected methods for financial analysis. Economic interpretation of results. (lectures 3 hours, practical work 2 hours).
3. Current assets and their management. Working capital management: the production cycle and the movement of working capital. (lectures 3 hours, practical work 2 hours).
4. Inventory management. (lectures 2 hours).
5. Debtor and cash management. (lectures 2 hours).
6. Capital structure management. Capital structure management: principles of creating the optimal capital structure. Determining, analysing and calculating the amount of long-term and short-term financing required. (lectures 3 hours, practical work 2 hours).
7. Management of business financing sources. Choice of long-term and short-term financing: the amount of financing required according to the company's business plans: situation analysis, calculations (lectures 3 hours, practical work 2 hours).
8. Exchange rate forecasting. Derivative financial instruments. (lectures 2 hours).
9. Settlement methods and special types of financing in international settlements. (lectures 2 hours).
10. International Trade Rules Incoterms. Application of international settlement methods and special financing methods in connection with the use of Incoterms. (lecture 1 hour, practical work 4 hours).

Requirements for awarding credit points

The evaluation of the study course consists of:
1) Financial management methods and tools. Working capital and capital structure management. (Test with calculations 15%).
2) Company financial management. (Independent work 15%).
3) Payment methods in international trade and special types of financing in international settlements and their application in practice. (Test with calculations 15%).
4) Use of derivative financial instruments to reduce currency risk, application of international settlement methods in connection with the use of Incoterms (Independent work 15%).
5) All topics (Exam 40%).

Description of the organization and tasks of students’ independent work

Prepare tests, exam, regular assignments and presentations.

Criteria for Evaluating Learning Outcomes

The evaluation of the study course consists of tests and elaboration and presentation of permanent works. 10% corresponds to one point on the 10-point assessment scale.

Compulsory reading

1. Alexander J. Financial Planning & Analysis and Performace Management. Hoboken, New Jersey: John Wiley & Sons, 2018., 612 p.
2. Brooks R. Financial Management: Core Concepts third edition. Boston: Pearson, 2016., 643 p.
3. Madura J., Fox R. International financial management. Andover: Cengage Learning EMEA, 2014. , 671 p.
4. Pike R. Corporate Finance and Investment: Decisions and Strategies. 8th ed. New York: Pearson Financial Times / Prentice Hall, 2015., , 844 p.
5. Rurāne M. Finanšu pārvaldība un analīze. Rīga: Avots, 2019., 258 lpp.

Further reading

1. Bekaert G., Hodrick R. International Financial Management. International Editon, 2014., 800 p.
2. Cheol S.E., Resnick B. G. International Financial Management. New York, 2008., 482 p.
3. Eiteman D.K, Stonehill A. I., Moffett M.H. Fundamentals of Multinational Finance. 4th ed., Prentice Hall, 2012., 544 p.
4. Grath A. The Handbook of International Trade and Finance: The Complete Guide to Risk Management, International Payments and Currency Management, Bonds and Guarantees, Credit Insurance and Trade Finance. Glasgow, 2008., 198 p.
5. Januška M. Firmas finansiāli ekonomiskā stāvokļa analīzes metodika: praktisks palīglīdzeklis. Rīga: Inovācija, 2002., 40 lpp.
6. Jimenez G. ICC Guide to Export/Import: Global Standarts for International Trade. 4th ed., Paris, France: ICC Publishing, 2012., 270 p.
7. Moosa, I. International finance: an analytical approach. 3rd edition, 2010., 560 p.
8. Praude V. Finanšu instrumenti. I: ieguldījumi, darījumi, analīze. Rīga: Burtene, 2009., 446 lpp.
9. Praude V. Finanšu instrumenti. II: ieguldījumi, darījumi, analīze. Rīga: Burtene, 2010., 487 lpp.
10. Ramberg J. ICC Guide to Incoterms 2010. Understanding and practical use. International Chamber of Commerce The world business organization. France, 2011., 215.p.
11. Rupeika-Apoga R., Zelgalve E. Finanšu tirgus un tā analīzes metodes. Rīga: LU Akadēmiskais apgāds, 2009., 117 lpp.
12. Rupeika-Apoga R. Tirdzniecība ar valūtu kā uzņēmējdarbības veids. Rīga, 2006., 335 lpp.
13. Zariņa V., Strēle I. Finanšu plānošana uzņēmumā. Rīga: Lietišķās informācijas dienests, 2009, 106 lpp.
14. Šneidere I. Finanšu analīzes metodes uzņēmuma maksātnespējas prognozēšanai. Rīga: Lietišķās informācijas dienests, 2009., 232 lpp.

Periodicals and other sources

1. Business Week [tiešsaiste]. Bloomberg L.P. Businessweek ISSN 0007-7135. Pieejams: https://www.bloomberg.com/businessweek.
2. Dienas Bizness: nedēļas laikraksts: Latvijas biznesa avīze. Rīga: Diena: Dagens Industri, 2005.
3. European Business Journal. International Business Verlag GmbH. ISSN 0955-808X. Pieejams: http://www.european-business-journal.com.
4. Financial Times. England based finance newspaper. London: The Financial Times Ltd. Pieejams: http://www.ft.com/home/europe.
5. Forbes: / žurnāls. Rīga: SK Media, 2010. ISSN 1691-6018.
6. Incoterms. Pieejams: http://www.incoterms.org.
7. Kanādas Eksporta kreditēšanas aģentūras materiāli par eksporta finansēšanu. Pieejams: http://www.edc.ca/english/index.htm
8. Starptautiskā Tirdzniecības kamera. („Incoterms” piegādes nosacījumu nomenklatūras apraksts) Pieejams: http://www.iccwbo.org/incoterms.
9. Starptautiskā tirdzniecības palāta. The World Trade organization (WTO). Pieejams: http://www.wto.org
10. The Economist. London: Economist Newspaper Ltd. Pieejams: http://www.economist.com.

Notes

Restricted elective study course for the specialization direction “Financial Management and Accounting” of the academic master's study program “Economics”.