Quantitative Corporate Finance

The textbook covers corporate finance, including capital raising, fund management, and risk distribution. It is updated with new chapters on APT portfolio selection, time series modeling, and forecasting using SAS, SCA, and OxMetrics programming. It is intended for graduate-level courses and could be used as a primary text in MBA and Financial Engineering programs.

Format: Hardback
Length: 611 pages
Publication date: 22 November 2020
Publisher: Springer Nature Switzerland AG

The corporation's legal framework is thoroughly explored in this comprehensive textbook, which also delves into the tools and institutions used to raise capital, the management of funds within individual firms, and the strategies employed to distribute risks and rewards among fund contributors. In its second edition, the book encompasses a diverse range of topics in corporate finance, including time series modeling and regression analysis, multi-factor risk models, and the Capital Asset Pricing Model. Authors Guerard, Gultekin, and Saxena have significantly expanded upon the first edition, while maintaining the core chapters on fundamental concepts such as mergers and acquisitions, regulatory environments, bankruptcy, and other essential aspects of corporate finance.

New additions to the second edition include in-depth examinations of APT portfolio selection and time series modeling and forecasting through SAS, SCA, and OxMetrics programming. FactSet fundamental data templates are also provided to enhance the learning experience. This textbook is designed as a graduate-level resource, suitable for use as a primary text in upper-level MBA and Financial Engineering courses, as well as a supplementary text for graduate courses in financial data analysis and financial investments.

The text begins by providing an overview of the corporate finance landscape, including the historical development and evolution of the field. It then delves into the key components of corporate finance, such as capital structure, investment decisions, and financing strategies. The book discusses the role of financial institutions in corporate finance, including banks, investment banks, and hedge funds. It also explores the various valuation methods used to assess the worth of companies, such as discounted cash flow analysis and asset-based valuation.

The second chapter focuses on the capital budgeting process, which involves evaluating potential investment projects and determining their viability. The chapter discusses the criteria used to evaluate investment projects, such as the net present value (NPV) and internal rate of return (IRR). It also covers the risk-return trade-off and the importance of risk management in corporate finance.

The third chapter explores the concept of financial statements, including the balance sheet, income statement, and cash flow statement. It explains how these statements are used to evaluate the financial performance of a company and to make investment decisions. The chapter also discusses the financial reporting standards and regulations that govern.

The fourth chapter delves into the topic of mergers and acquisitions, which are a significant aspect of corporate finance. It discusses the different types of mergers and acquisitions, such as asset acquisitions, stock acquisitions, and mergers of equals, and the factors that affect the success of mergers and acquisitions. The chapter also covers the valuation methods used in mergers and acquisitions, such as the discounted cash flow analysis and the comparable company analysis.

The fifth chapter explores the role of financial institutions in corporate finance, including banks, investment banks, and hedge funds. It discusses the different functions of these institutions and their role in providing capital to companies. The chapter also covers the regulatory environment surrounding financial institutions and the impact of regulations on corporate finance.

The sixth chapter focuses on the capital markets, including the stock market, bond market, and derivatives market. It explains how these markets work and the factors that affect their performance. The chapter also discusses the different types of investors in these markets, such as individual investors, institutional investors, and hedge funds.

The seventh chapter explores the concept of financial risk management, including the different types of risks that companies face the face, such as market risk, credit risk, and operational risk. It discusses the methods used to manage these risks, such as diversification, hedging, and risk transfer. The chapter also covers the role of financial derivatives in managing risk.

The eighth chapter explores the concept of financial investments, including the different types of investments, such as stocks, bonds, and mutual funds. It discusses the factors. The chapter also covers the factors that affect the performance of financial investments, such as market conditions, economic indicators, and political factors. The chapter also discusses the different investment strategies used by investors, such as value investing, growth investing, and momentum.

The ninth chapter explores the role of financial technology in corporate finance, including the different types of financial technology, such as blockchain, artificial intelligence, and machine learning. It discusses the potential benefits and challenges of these technologies and their impact on corporate finance. The chapter also covers the different regulatory frameworks surrounding financial technology and the impact of regulations on corporate finance.

The tenth chapter explores the future of corporate finance, including the potential trends. The chapter discusses the potential trends and challenges facing corporate finance in the future, such as the impact of globalisation, technological advancements, and regulatory changes. It also covers the different strategies that companies can use to adapt to these trends and challenges, such as digital transformation, sustainability, and innovation.

The eleventh chapter explores the role of corporate finance in society
The role of corporate finance in shaping the future of the world is immense. As businesses continue to evolve and adapt to the changing landscape of the global economy, corporate finance plays a crucial role in driving innovation, growth, and sustainability. In this chapter, we will explore the various ways in which corporate finance is shaping the future of the world.

One of the most significant ways in which corporate finance is shaping the future of the world is through its impact on innovation. Corporate finance is a key driver of innovation, as it provides the capital and resources necessary for businesses to invest in research and development (R&D) and other innovative activities. By investing in R&D, businesses can create new products and services that can improve the lives of people around the world, while also generating new sources of revenue and driving economic growth.

Corporate finance also plays a crucial role in driving sustainability. As businesses become increasingly aware of the impact of their activities on the environment, they are increasingly looking for ways to reduce their carbon footprint. Corporate finance can help businesses achieve this by providing the capital and resources necessary to invest in sustainable practices, such as renewable energy, waste management, and sustainable supply chain management. By investing in sustainable practices, businesses can reduce their environmental footprint and help create a more sustainable future for all.

Another way in which corporate finance is shaping the future of the world is through its impact on growth. Corporate finance is a key driver of economic growth, as it provides the capital and resources necessary for businesses to expand and grow. By investing in growth, businesses can create new jobs and generate new sources of revenue. This, in turn, can help reduce poverty and improve the quality of life for people around the world.

Corporate finance also plays a crucial role in driving social responsibility. As businesses become increasingly aware of the impact of their activities on society, they are increasingly looking for ways to give back to their communities. Corporate finance can help businesses achieve this by providing the capital and resources necessary to invest in social responsibility programs, such as education, healthcare, and poverty alleviation. By investing in social responsibility programs, businesses can help create a more just and equitable society.

Finally, corporate finance plays a crucial role in driving globalisation. As businesses become increasingly globalised, they are increasingly looking for ways to navigate the complex web of regulations and policies that govern international trade. Corporate finance can help businesses achieve this by providing the capital and resources necessary to invest in globalisation programs, such as cross-border mergers and acquisitions, and international trade agreements. By investing in globalisation programs, businesses can help create a more interconnected and integrated global economy.

In conclusion, corporate finance is a powerful tool that can be used to shape the future of the world in a positive way. By investing in innovation, sustainability, growth, social responsibility, and globalisation, businesses can create a more sustainable, just, and equitable society. As businesses continue to evolve and adapt to the changing landscape of the global economy, corporate finance will play an increasingly important role in driving innovation, growth, and sustainability.

Weight: 1078g
Dimension: 162 x 242 x 43 (mm)
ISBN-13: 9783030435462
Edition number: 2nd ed. 2021