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Frontiers in Corporate Finance for Latin American Executives
Increasing Corporate Value
Through Financial Risk Management

Prof. Ian Giddy
New York University

How can Latin American corporations and their bankers increase shareholder value by better management of the amount and kind of debt they have, and by using derivatives appropriately?

Selected Readings:

Schedule and Case Study Assignments

Increasing Corporate Value
Through Financial Risk Management
Stern School of Business
New York University


Topic Remarks

  • The Emerging Market Crisis: Corporate Financial Bets that Destroyed Value
  • Increasing Value, Part I: Managing Financial Leverage
Discussion of Sammi Steel and TPI cases


  • Increasing Value, Part II: Managing Financial Market Risks
  • Conclusion: A Roadmap for Corporate Value Improvement
Discussion of Frutas Amazonas, Pesces and Ban Pu cases

Case Study: Xerox
Assignment: How should this company finance itself for future survival and growth?

Case Study: Thai Petrochemical Industry
Assignment: TPI, the heavily indebted Thai company, is under pressure to recapitalize. Having completed a restructuring of its debt, the company plans to reduce its debt/equity ratio to below 0.5 by the end of 2000. How can this be done? What method should it use to ensure the company's long run survival? What can be learned from the way Siam Commercial Bank has approached its refinancing?

Case Study: Frutas Amazonas
Assignment: How should this Peruvian company finance its exports to Spain? Should the debt be hedged?

Case Study: Exportadores Pesces de Concepcion
Assignment: In what currency should Chile's salmon exporters finance their exports to Japan? Pesos? Yen? Dollars? Krone? 

Case Study: Ban Pu Coal Company and Exhibits
Assignment: How much debt should this Thai company have? What is the recommended maturity, interest contract, and currency to finance Ban Pu’s Mai Moh project and future expansion?

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Revised 15 February 2001. Copyright © 2001 Ian H Giddy. All rights reserved.