Advanced Corporate Finance

Primarily intended as a text for postgraduate students of management and those pursuing postgraduate courses in finance, this well-organised and deeply researched study explains corporate finance as an area of finance dealing with the financial decisions corporations make and the tools and analyses used to make these decisions.

The book discusses the theoretical and practical tools essential to a Chief Financial Officer (CFO). It introduces advanced valuation techniques and provides a rigorous understanding of what creates value and why. Organised into seven parts, Part I of the text provides a rationale for value-based management as the overriding objective of the firm as well as highlighting how a CFO can increase the value of the firm by fine-tuning financial policies.

Part II introduces real options, a new methodology for valuing corporate investments. Part III explores old and new financial instruments, and stresses the objective and methods of active risk management. Part IV examines the structuring, financing and valuation of large-scale, standalone projects. Part V deals with agency problems, and how finance managers can address these problems using incentives.

Part VI reviews some of the most popular restructuring methods and presents empirical evidence on such issues. The concluding part, Part VII, tries to integrate the contents of the book since good corporate governance is essential for effective implementation of policies. As well as students, practising managers and finance professionals who want to upgrade their knowledge on corporate finance will find the text extremely useful.