Argumentation in Finance

 As a discourse aimed at justifying a claim on reasonable grounds, argumentation intervenes in finance to achieve two main goals, which are both considered in this course:
(1) Support sound decision-making. Both corporate managers and investors make use of argumentation to improve the quality of their decisions through informal inferences connecting available information to evaluations and investment decisions. For instance, arguments are made to assess the credibility of signals, the reliability of a prediction, biases in corporate disclosure, to evaluate the prospects of a new venture, a change in business strategy or the rationale of a merger.
(2) Persuade investors and other market actors. The legitimation, diffusion and success of financially-relevant corporate initiatives significantly depend on management’s ability to offer convincing reasons that persuade investors, regulators, analysts and media in relation to the firm’s valuation and to various issues emerging in corporate life.

The course will introduce instruments supporting the analysis and evaluation of argumentation strategies in the context of several market activities, with a special attention to:

• Arguments in the financial news, commentary and analysis
• Basic argumentative patterns of the investment case
• Argumentative strategies of analysts and executives in earning conference calls
• Argumentative strategies of friendly and hostile takeovers
• Argumentative strategies of the start-up pitch.
• Argumentative strategies of activist investors and proxy contests
• Trust-oriented argumentative strategies and corporate crises

The analysis of argumentation strategies will be based on a systematic theory-informed approach to the reconstruction and evaluation of arguments in context introduced step by step in the course. The conceptual tools gradually introduced in the course include:

• Contexts of argument and incentives to argue
• Issues, standpoints and starting points.
• Argumentation structure (with OVA-based reconstruction)
• Argumentative inference: practical reasoning (with AMT reconstruction)
• Argumentative inference: trust-based arguments (with AMT reconstruction) 
• Critical questions and counterarguments
• Rhetorical persuasion: ethos, pathos and logos.
• Complex discussions: argumentative polylogue. 

The course introduces the argumentative dimension of financial interactions. Students will learn methods for analyzing and evaluating arguments exchanged in the financial arena, applying them to a case study of their choice. Students will also practice the design and delivery of persuasive argumentation in the context of a start-up pitch.

In presenza

The course is based on theoretical lectures, presentations of extended examples and case studies, argumentation analysis exercises, a group activity focused on argumentative production, and an individual case study of argumentation analysis and evaluation.
Regular attendance (at least 75% of the course) is highly recommended as the course systematically builds on previously introduced concepts, employs a good deal of technical concepts and jargon. Classes also include hands-on exercises that will be included in the exam. Attendance to in-course evaluated activities is mandatory.

To map arguments, a theory-based argument visualization software for collaborative analysis (OVA) will be employed: http://ova3.arg.tech/

A detailed syllabus and reading list will be made available via the iCorsi platform at the start of the course. 

30% of the grade will be assigned during the course:

Start-up pitch (10%). This group activity centered on designing a pitch-deck for a start-up venture, presenting the pitch, defending it in the face of critical questions and explaining the rationale of  the strategy used. The activity assigns 10% of the grade and requires the full in-person participation of each member to the activity to obtain the group score.

Intermediate written test (20%). This written intermediate exam is designed to test the students’ grasp of the basic concepts of argumentation analysis. The test is held during class hours and it will not be possible to repeat the test during exam sessions.

Oral exam (70%). The rest of the grade will be based on a final oral exam consisting of an oral presentation of a case study research of argumentative analysis and evaluation of financial communication, followed by questions on the concepts and analytical tools employed.