The final quarter of the 20th century saw the beginnings of a transformation with the decline of industrial economy and rise of the information economy. Today the economy is increasingly centered around intangible assets and services, intellectual assets, new business models, open innovation and network economies. The central issue however is still the same, delivering firm value in both the short and long term while maintaining a sustainable competitive advantage. These issues are examined within the context of innovation, the evolution of industry sectors, and advanced financial analysis, corporate finance, quantitative finance and risk management concepts. Financial analysis includes the financial statements, stocks and flows, and ROCE and ROIC ratios, while corporate finance covers DCF and real options investment analysis methods. Advanced derivatives methods are applied to real assets in case studies that cover IT, energy, pharmaceutical, climate change, media and commercial real estate to illustrate the issues.
List of Figures and Tables Preface Acknowledgements Introduction The external environment Strategy, value and risk References THE EVOLUTION OF STRATEGY, VALUE AND MEASURING RISK Strategy Innovation and the entrepreneur The evolution of industry sectors From corporate planning to shareholder value Strategy and value Appendix - The classification of industry sectors References Value Overview The accounting foundations Stocks and flows Ratio analysis Investments References Risk Investment risk Why manage risk Defining and measuring risk The risk drivers Value and risk References THE ANALYSIS OF PERFORMANCE AND INVESTMENTS The Analysis of Performance Valuation Firm Asset Debt Equity Residual earnings Free cash flows Pro forma analysis References The Analysis of Investments Introduction A corporate software upgrade An energy natural gas power plant Pharmaceutical research and development Growth, adaption and continuity Firm abandonment The sale of corporate real estate assets References QUANTITATIVE ANALYTICS AND METHODS Data Analysis Data and information Time series analysis Volatility The lognormal distribution Which volatility? References Derivatives Futures, forwards and options The replicating portfolio and risk-neutral valuation References Option Pricing Methods A model for asset prices The Black-Scholes formula Numerical techniques References Implementing Derivative Models Spot price models Forward curve models Alternative real options methods Model risk Real option portfolios and complex payoffs References Conclusion and Practical Implications Index
(0 Comentarios)
