Undergraduate Studies
Academic Year 2025-26
Banking Laboratory
Files and Links
- Course Outline .pdf (Greek)
- Course Outline .pdf (English)
- Full Description @courses.xrh
- Link to e-class
6th or 8th Semester
ΧΡΕΤΡ01
Course id
7,5
ECTS
Elective
Course type
This course focuses on the empirical literature of capital structure, the expected support of governments to banks as well as presentations of related scientific papers.
The aim is to cultivate critical thinking and familiarity with empirical literature and related sources of information. The focus will be on topics such as the capital structure of firms, trade-off and pecking order theory, determinants of financial leverage, implicit guarantees for bank debt and the effect of market discipline in the financial sector.
Upon successful completion of the course, a student:
- Will have the knowledge to analyse the capital structure of a firm, to understand how governments can indirectly support banks so that the latter fulfil their intermediary role, as well as the risks firms face due to business cycles.
- Will be able to understand the theoretical framework and apply the necessary tools to choose the right mix of debt and equity capital.
- Will be able to study scientific papers and make presentations of the most important points, focusing on motivation, the empirical literature, and the employed theoretical and empirical models.
- Search for, analysis and synthesis of data and information, with the use of the necessary technology.
- Decision-making.
- Working in an international environment.
- Production of free, creative and inductive thinking
- Capital Structure: Empirical Literature
- Capital Structure Theory
- Modigliani and Miller’s irrelevance proposition
- Trade – off theory
- Pecking order theory
- Static Trade-off Tests
- Pecking Order Tests
- Dynamic Trade-off Tests
- Identification of Leverage Determinants
- New Test for Detecting Leverage Determinants
- Capital Structure Theory
- Implicit Guarantees for Bank Debt
- Implicit guarantees: policy issues
- Adverse feedback effects from sovereign to bank debt values and vice versa
- Credit ratings as an indirect measure of the value of implicit guarantees
- Market Discipline in Banking
