Mikael Keskitalo

Lecturer in Corporate Finance

mikael.keskitalo@bth.se

TIEK: Room: J2223

Presentation

Corporate Finance is both a deeply theoretical and highly practical discipline. Throughout my career as a corporate finance consultant, I have relied on financial theory to solve complex real-world problems. One such instance involved assisting a finance director and his team at a global company in assessing the value and volatility of a real option – that is not traded in a market. A professor at Erasmus University, formerly one of my teachers, provided invaluable insights, leading me to explore the solution through Bayesian Econometrics.

My extensive international business experience in Corporate Finance and Corporate Valuation allows me to bridge the gap between theory and practice for my students. This approach is evident in my teaching of;

Industrial Economics, where you will learn to combine technology and economics to optimise decision-making, resource allocation, and financial management. The course covers cost calculation, budgeting, investment assessment, and strategic planning to enhance business efficiency.

Corporate Finance where we focus on maximising shareholder value through raising money (financing) and making money (investing). This course teaches you about Financial Statements, Capital Budgeting, Bonds & Stocks, Derivatives, Portfolio Theory, Capital Structure and Behavioral Finance.

Corporate Valuation where we use the tools from Corporate Finance, add PwC Corporate Finance “Value Drivers” when determining the intrinsic value of a manufacturing company through cash flow analysis and evaluate the research phase of a pharmaceutical company using real options. We will also develop a business plan from an entrepreneurial perspective.  This course is built on Aswath Damodaran: “Corporate Valuation is not pricing; it is about understanding the industry, the business, cash flows, growth, and risk, and then trying to attach a number to a business based on its value – as a business.”

In my teaching, I also emphasise critical evaluation of financial research. During my studies at Erasmus University (and when JP Morgan introduced Value-at-Risk) we examined groundbreaking work such as Miller and Modigliani’s (1958, 1963) research on capital structure. The field continues to evolve, as highlighted by Fama and French (2005: 581): “It is probably time to stop running empirical horse races between the trade-off and the pecking order as stand-alone stories for capital structures. Perhaps it is best to regard the two models as stable mates, with each having elements of truth that help explain some aspects of financing decisions.” This underscores the importance of continuous learning and a critical approach to financial models.

Drawing on my international business experience, my goal is to equip students with an advanced financial toolbox that prepares them to tackle real-world challenges. My teaching is designed to enhance analytical skills and develop the ability to make strategic financial decisions that drive corporate success.

My journey into finance began as a young man inspired by the movie “Wall Street,” which led me to pursue a career in the field. After earning my Master of Science in Finance from Örebro University, which included studies and a master’s thesis in corporate finance at Erasmus University Rotterdam, I secured a coveted position as a consultant at the prestigious PwC Corporate Finance in Stockholm. This pivotal role marked the beginning of my international career, which I now continue as a lecturer.

Welcome to join my classes in – Industrial Economics, Corporate Finance and Corporate Valuation.

IY2583 Corporate Valuation 7,5 credits  (Course Manager)
IY2633 Corporate Finance (MBA) 7,5 credits  (Course Manager)
IY1429 Corporate Finance 7,5 credits  (Course Manager)
IY1434 Industrial Economics 7,5 credits  (Course Manager)

Recipient of the – Best Teacher Award in 2023

Mikael Keskitalo