Corporate Financial Policy and R&D Management
2nd Edition
Published on 1. June 2005
Book
Hardback
304 pages
978-0-471-45823-4 (ISBN)
Description
A timely guide for those investing in research and development.
Completely updated and expanded, this edition examines the relationship between managing research development (R&D) and sustaining sound financial policy. Through their extensive fieldwork and consulting, the authors' demonstrate how to balance and manage R&D efforts, capital investment, and new debt financing decisions. They also offer a framework for understanding the interdependence between these elements and the tools that include financial modeling techniques for determining resource allocation.
Completely updated and expanded, this edition examines the relationship between managing research development (R&D) and sustaining sound financial policy. Through their extensive fieldwork and consulting, the authors' demonstrate how to balance and manage R&D efforts, capital investment, and new debt financing decisions. They also offer a framework for understanding the interdependence between these elements and the tools that include financial modeling techniques for determining resource allocation.
More details
Series
Edition
2., Auflage
Language
English
Place of publication
New York
United States
Publishing group
John Wiley and Sons Ltd
Target group
Professional and scholarly
Edition type
Revised edition
Illustrations
Illustrations
Dimensions
Height: 24.2 cm
Width: 16.1 cm
Thickness: 26 mm
Weight
637 gr
ISBN-13
978-0-471-45823-4 (9780471458234)
Schweitzer Classification
Other editions
Previous edition
John B. Guerard | Alden S. Bean
R & D Management and Corporate Financial Policy
Book
02/1998
1st Edition
Wiley
€115.00
Article exhausted; check for reprint
Persons
JOHN B. GUERARD JR. is a faculty member at Rutgers University and a financial consultant to several financial institutions and money managers, including serving on the Virtual Research team of GlobeFlex Capital Management, Inc. Guerard has served on the faculty of the University of Virginia and Lehigh University, as well as in research departments at Drexel, Burnham, Lambert, Daiwa Securities Trust Company, and Vantage Global Advisors, Inc. While serving as director of quantitative research at Vantage Global Advisors, Inc, Guerard was awarded the first Mosokowitz Prize for research in socially responsible investing. He has published several articles in the International Journal of Forecasting, Management Science, Research in Finance, the Journal of Forecasting, the Journal of Investing, and the Financial Analysts Journal. Guerard is a coauthor of several textbooks, including the Handbook of Financial Modeling, and Quantitative Corporate Finance. He serves as an Associate Editor of the International Journal of Forecasting and the Journal of Investing and as an adjunct faculty member in the Graduate School of Management at Rutgers University and the Executive Master's in Technology Management (EMTM) at the University of Pennsylvania.
Content
Preface.Biography.Chapter 1. R&D Management and Corporate Financial Policy.Chapter 2. An Introduction to Financial Statements.The Balance Sheet.Assets.Current Assets.Fixed Assets.Other Assets.Liabilities and Capital.Current Liabilities.Long Term Debt.Capital Section of the Balance Sheet.Book Value of Common Stock.Consolidated Balance Sheets.The Operating Statements: The Income Statement and Sources and Uses of Funds.Consolidated Statements.Sources and Uses of Funds.Chapter 3. Ratio Analysis.Ratio Analysis and the Firm's Perceived Financial Health.Current Analysis Ratios.Leverage Ratio.Sales Efficiency Ratio.Profitability Ratios.Financial Ratios and the Perceived Financial Health of Firms.The Time Series of Ratios in the U.S., 1970-2003.Limitations of Ratio Analysis.Chapter 4. Debt, Equity, Financial Structure, and the Investment Decision.Definition of Leverage - Profits and Financial Risk.The Pure Theory of the Optimal Financial Structure.Modigliani and Miller - Constant Capital Costs.The Optimal Capital Structure and the M&M Hypothesis.Empirical Factors Influencing Financial Structures.The Cost of Capital.Real Options and the Investment Decision.Abandonment Value.The Option to Delay a Project.Implications of Viewing the Right to Delay a Project as an Option.Chapter 5. An Introduction to Statistical Analysis and Simultaneous Equations.The Linear Regression Model.Multiple Regression.Least Squares Estimates of the Regression Coefficients.Multiple Coefficient of Determination.Estimation of Simultaneous Equations Systems.Two Stage Least squares (2SLS).Three Stage Least Squares (3SLS).Chapter 6. The Interdependencies among Corporate Financial Policies.The Model.The Data.Estimated Simultaneous Equation Results.Chapter 7. Comparing Census/NSF R&D Data with Compustat R&D Data.Innovation, R&D, and Stockholder Wealth.Financial Decision Estimation Results.Comparison of R&D Expenditure Data.Comparison of Regression Results.Relation of Current Results to Prior Research.Extensions of the Simultaneous Equation Approach.Summary and Conclusions.Suggestions for Future Research.Chapter 8. The Use of Financial Information in the Risk and Return of Equity.An Introduction to Modern Portfolio Theory.Expected Returns: More than Historic Mean Returns.Further Estimations of a Composite Equity Valuation Model.Appendix A: Multi-Factor Risk Models.BARRA Model Mathematics.Appendix B: US-E3 Descriptor Definitions.Chapter 9. The Optimization of Efficient Portfolios: How the R&D Quadratic Term.Enhances Stockholder Wealth.Efficient Portfolio Optimization Results.Chapter 10. The (Not So Special) Case of Social Investing.Stock Selection in Unscreened and Screened Universes.Stock Selection and the Domini Social Index Securities.Recent Socially Responsible Research.Summary and Conclusions.Chapter 11. R&D Management and Corporate Financial Policy: Conclusions.Exercises.Endnotes.References.Figures.Tables.