Capital market financing has recently become increasingly important for German companies. Many large companies are forced to use the global capital market in order to raise the necessary funds. But many small and above all young, high-growth companies also make use of the capital market. With the increasing capital market orientation of German companies, the relationship between the company and the other market participants also plays an increasingly important role.

 

The long-term success of a company depends on its ability to identify new investment opportunities and on the perception of investors such as shareholders or banks who have to assess these opportunities.

 

Therefore, not only the procurement of information about investment opportunities is of fundamental importance, but also the credible transfer of relevant information about the company to the capital market. The latter requires an understanding of the functioning of (capital) markets, in particular with regard to the information processing processes taking place there.

 

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The investors use the communicated information as a basis for their investment decisions. To do this, they analyse the information provided using business methods such as equity analysis, company valuation and rating. As a result, investors only provide long-term capital to those companies that meet their expectations. This includes both the expected return and the risk associated with the investment.


In order to meet investors' expectations, the company's strategies must be aligned and implemented accordingly. This requires the creation and maintenance of the company's own earning power. A holistic and balanced corporate development as a prerequisite for stable returns and the hedging of business risks relies on the expansion of strategic success potentials (possibly taking into account diverging interests of the stakeholders) and the maintenance of a healthy asset and capital structure. Both investment planning and the earnings and liquidity situation of the company require ongoing planning, management and control within the framework of corporate controlling, whereby internal analyses of the net assets, financial position and results of operations are used to support decision-making. With regard to capital market orientation, controlling systems must be established in the company that support investor-oriented decision-making, which is often referred to as value-oriented controlling. At the same time, incentive systems must be created that encourage management to act in the interests of the owners. On the other hand, alternative balance sheet representation options and various forms of corporate communication (investor relations) of the company's events influence the decision-making process on the capital market.


Financial and information flows are thus directly interrelated. Due to the increasing importance of capital market communication, a strongly growing demand for specialists with relevant interface skills is to be expected. The aim is to provide future decision-makers and managers with a holistic view of the interaction between companies and the capital market. By combining this with elective courses offered by other chairs, it is possible to prepare students for a wide range of individual careers. Possible specializations are banking, controlling, financial analysis, tax consulting, management consulting, auditing.

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