Contents
Section 1 Trends in Finance Theory
Janette Rutterford
1 The World was their Oyster: International Diversification Pre-World War I
Janette Rutterford
CASE STUDY 1 Global Evidence on the Equity Risk Premium
Elroy Dimson, Paul Marsh and Mike Staunton
Jay R. Ritter
CASE STUDY 2 Do Fundamentals – or Emotions – Drive the Stock Market?
Marc Goedhart, Timothy Koller and David Wessels
Section 2 Adding Value Through Investment
Janette Rutterford
3 Why Bad Projects Are So Hard to Kill
Isabelle Royer
4 Realizing the Potential of Real Options: Does Theory Meet Practice?
Alexander Triantis
K. Leslie and M. Michaels
5 Mergers, MNEs and Innovation: The Need for New Research Approaches
Christian Berggren
CASE STUDY 4 Why Most Cross-Border Deals End in Tears
Simon London
Section 3 Adding Value Through Financing
Janette Rutterford
6 The Capital Structure Puzzle: Another Look at the Evidence
Michael J. Barclay and Clifford W. Smith, Jr.
7 Disappearing Dividends: Changing Firm Characteris or Lower Propensity to Pay?
Eugene F. Fama and Kenneth R. French
Richard Dobbs and Werner Rehm
Keith Boyfield
CASE STUDY 6 Death of the Dividend?
Adrian Wood
CASE STUDY 7 Sciona: A Venture Capital Case Study
Colin Bond
Jay R. Ritter
CASE STUDY 8 Google Press Cuttings
(A) Are You About to Get Googled?
Tony Glover
(B) Ignore Wall St's Whining – Google's IPO Worked
James Surowiecki
(C) Google's Earnings More than Double 1st Quarterly Results as Public Firm Strong
Robert Weisman
(D) How High Can Google Fly?
Verne Kopytoff
(E) Bowling for Google
Paul R. La Monica
(F) Google's Rising Share Price is Cold Comfort for Investors
Stephen Schurr
Section 4 Adding Value through Risk Management
Martin Upton
D.R. Lessard and J.B. Lightstone
11 Currency Exchange Trading and Rogue Trader John Rusnak
Sharon Burke
12 Value at Risk: Uses and Abuses
Christopher L. Culp, Merton H. Miller and Andrea M.P. Neves
13 Learning to Live with Fixed Rate Mortgages: An Evolutionary Approach to Risk Management
Martin Upton
John Kiff and Ron Morrow
Jenny Wiggins
CASE STUDY 10 Who Rates the Raters?
The Economist
Section 5 Measuring Performance
Janette Rutterford
15 What can be Expected from Accounting Standards?
Gilbert Gélard
CASE STUDY 11 Queens Moat Houses plc
Queens Moat Houses plc Annual Accounts
CASE STUDY 12 Learn by Numbers
Keith Boyfield
The Economist
17 EVA Implementation, Market Over-Reaction, and the Theory of Low-Hanging Fruit
Barbara Lougee, Ashok Natarajan and James S. Wallace
18 Transforming the Balanced Scorecard from Performance Measurement to Strategic Management: Part I
Robert S. Kaplan and David P. Norton
19 Performance Indicators: 20 Early Lessons from Managerial Use
Andrew Likierman
Section 6 Governance and Ethics
Janette Rutterford
20 It's Time to Rebalance the Scorecard
James M. Higgins and David M. Currie
Will Hutton
CASE STUDY 13 The State of Denial We're In
The Economist
David Cogman and Jeremy M. Oppenheim
CASE STUDY 14 An Interview with Microsoft's CFO
Bertil E. Chappuis and Timothy M. Koller
CASE STUDY 15 Corporate Governance Failures: To What Extent is Parmalat a Particularly Italian Case?
Andrea Melis
CASE STUDY 16 Companies Still Failing to Fill the Funding Gap
Lucy Warwick-Ching