Finance For Strategic Decision Making

Finance for Strategic Decision Making demystifies andclarifies for non-financial executives the basics of financialanalysis. It shows how they can make important financial decisionsthat can critically enhance their institution’s ability torespond to competitive challenges, undertake new projects, overcomefinancial setbacks, and most importantly, create shareholder value.Written by M. P. Narayanan and Vikram K. Nanda—two of thecountry’s leading authorities on financialstrategy—this book offers a practical guide for usingfinancial analysis to enhance strategicdecision making. The bookincludes a coherent framework that outlines practical andintellectually sound guidance for executives who must makestrategic decisions. Finance for Strategic Decision Making Explains the role of finance in corporate strategy Offers guidance on resource allocation decisions Explores how to determine the right balance of debt and equitycapital to maximize firm value Demonstrates how to use payout policy as a strategic tool Clarifies if a merger, acquisition, or divestiture is in thebest interest of an organization Shows how to manage risk Reveals how to measure value created and the effectiveness ofupper level management

Corporate Financial Strategy is a practical guide to understanding the elements of financial strategy, and how directors and advisors can add value by tailoring financial strategy to complement corporate strategy. The book sets out appropriate financial strategies over the key milestones in a company's life. It discusses the practicalities behind transactions such as: * Raising venture capital * Flotation on a stock exchange * Making acquisitions * Management buyouts * Financial restructuring In explaining financing structures, the book sets out the basic building blocks of any financial instrument to enable the reader to appreciate innovations in the field. It also illustrates how and why different types of security might be used. The second edition of this very popular textbook brings to bear the considerable commercial and academic experience of its co-authors. Throughout, the book offers a range of up-to-date case studies, abundant diagrams and figures, and frequent 'Working Insight' sections to provide practical illumination of the theory. This book will enable you to understand the potential value added by the best financial strategy, while fully demonstrating the working role of financial strategy within an overall corporate strategy. An excellent practical guide for senior financial managers, strategic-decision makers and qualified accountants, the text is also invaluable as a clear-sighted and thorough companion for students and senior executives on finance courses (including MBA, MSc and DMS).

Companies' decision-making and planning systems find themselves in a constant tug of war between strategic and financial considerations. The authors analyze these two opposing currents in business thinking, dissecting their differences and identifying their best practices. They also develop an approach that reconciles the two conflicting schools of thought – without watering down their differences. Schwenker und Spremann argue that both strategic and financial perspectives can serve as a compass in management's decision-making processes: Which perspective to choose depends on the phase of business. The authors distinguish four phases in the company lifecycle – phases in which the business must find the proper position, develop, grow and, ultimately, earn. In the first two phases, strategic considerations should take priority; in the latter two phases, financial considerations rule the day.

This handbook in two parts covers key topics of the theory of financial decision making. Some of the papers discuss real applications or case studies as well. There are a number of new papers that have never been published before especially in Part II.Part I is concerned with Decision Making Under Uncertainty. This includes subsections on Arbitrage, Utility Theory, Risk Aversion and Static Portfolio Theory, and Stochastic Dominance. Part II is concerned with Dynamic Modeling that is the transition for static decision making to multiperiod decision making. The analysis starts with Risk Measures and then discusses Dynamic Portfolio Theory, Tactical Asset Allocation and Asset-Liability Management Using Utility and Goal Based Consumption-Investment Decision Models.A comprehensive set of problems both computational and review and mind expanding with many unsolved problems are in an accompanying problems book. The handbook plus the book of problems form a very strong set of materials for PhD and Masters courses both as the main or as supplementary text in finance theory, financial decision making and portfolio theory. For researchers, it is a valuable resource being an up to date treatment of topics in the classic books on these topics by Johnathan Ingersoll in 1988, and William Ziemba and Raymond Vickson in 1975 (updated 2 nd edition published in 2006).

A solid understanding of financial analysis is an essentialbut often overlookedprerequisite to making key strategic decisions.Financial Analysis and Decision Making explains how all professionals can use the tools and techniques of financial analysis to define problems, gather and organize relevant information, and improve problem-solving skills. David E. Vance, C.P.A., is an instructor in the M.B.A. program at Rutgers University School of Business and director of executive development for the Rohrer Center for Management and Entrepreneurship.

This book provides insights into the hidden role of intuitive expertise in financial decision-making. The authors show and discuss how expertise combined with intuitive judgments positively affect decision-making outcomes. The book builds on the latest academic studies in this emergent field. In combination with the academic perspective, the authors provide a field study that they conducted in the context of mergers and acquisitions (M&As), a common and critical strategic investment for companies. The interviews were carried out with experts and decision-makers in large and successful international companies (i.e., M&A experts, CEOs, CFOs, and board members). The book provides a solid theoretical and empirically based grounding of the topic. In addition, it offers suggestions to practitioners on how they can develop and nurture intuitive expertise in strategic investment decision-making. The report of the field study provides examples and quotes from interviews to visualize findings, thus helping practitioners gain understanding and insights from the text. The authors also discuss the downsides of intuitive expertise, such as biases and flawed decision-making. For scholars, students, and professionals, the book offers a concise and up-to-date summary of an emergent stream of research, exploring how cognition and judgment affect financial decision-making.