Financial Strategy

Adding Stakeholder Value

Janette Rutterford

Publisher: Wiley, 2000, 344 pages

ISBN: 0-471-98349-7

Keywords: Finance, Open University Business School, MBA

Last modified: Sept. 11, 2022, 9:46 p.m.

Recent developments in financial strategy have concentrated on adding value to organisations. Financial Strategy gives an overview of these developments can be used to improve performance in private and public sector organisations around the world.

The key themes addressed are:

  • Trends in finance theory
  • Adding value through investment
  • Adding value through financing
  • Adding value through risk management
  • Measuring performance
  • Corporate governance

Innovations such as financial restructuring, the role of real options, financial engineering and economic value added are included, as is discussion of the changed relationship between accounting and finance within the organisation.

Financial Strategy features:

  • articles which pinpoint future trends in both finance and accounting
  • a practical rather than overly theoretical approach
  • case studies and examples with a global emphasis

Financial Strategy: Adding Stakeholder Value is a Course Reader for the Open University Business School MBA Course: B821 Financial Strategy.

  • Section 1: Trends in Finance Theory
    1. The Efficient Market Theory Thrives on Criticism
      D. R. Lee and J. A. Verbugge
    2. Risk and Return
      The Economist
    3. Estimating Expected Return
      F. Black
  • Section 2: Adding Value Through Investment
    1. Investment Appraisal Criteria and the Impact of Low Inflation
      A. Wardlow
    2. Selling of Capital Investments to Top Management
      O. P. Limijärvi
    3. The Options Approach to Capital Investment
      A. K. Dixit and R. S. Pyndyck
      • Case Study 1: Real Options
        K. Leslie and M. Michaels
    4. Solving the New Equity Puzzle
      P. Dechow, A. Hutton and R. Sloan
      • Case Study 2: Valuation and New Issue: Deutsche Telekom
        T. Jackson/W. Münchau/W. Mümchau and A. Fisher
  • Section 3: Adding Value Through Financing
    1. The Search for Optimal Capital Structure
      S. C. Myers
      • Case Study 3: Brand Owners and Capital Structure
        Corporate Finance
      • Case Study 4: Project Finance: Making the Right Financial Connections for Melbourne
        M. Carapiet
      • Case Study 5: Dividend Cut: The Case of FPL
        D. Soter and P. Evanson
  • Section 4: Adding Value Through Risk Management
    1. The Use of Risk Analysis Techniques in Capital Investment Appraisal
      S. S. M. Ho and R. H. Pike
    2. Operating Exposure
      R. R. Lessard and J. B. Lightstone
    3. Modules for Standardizing the Process
      A. Steyn and A. Boessenkool
    4. How Financial Engineering Can Advance Corporate Strategy
      P. Tufano
    5. New Ways with Derivatives
      S. Brady
    6. Rethinking Risk Management
      R. M. Stultz
      • Case Study 6: Ring of Confidence
        G. Cooper
  • Section 5: Measuring Performance
    1. Using Earnings and Free Cash Flow to Evaluate Corporate Performance
      R. G. Sloan
      • Case Study 7: The Case of UK Convertible Securities: Creative Compliance in Financial Reporting
        A. K. Shah
      • Case 8: Queens Moat Houses P.L.C.
    2. Making Accounting More International: Why, How, and How Far Will It Go?
      R. Ball
      • Case Study 9: International Accounting and Daimler-Benz
        D. Hawkins
    3. The Balanced Scorecard: Measures That Drive Performance
      R. S. Kaplan and D. P. Norton
    4. Performance Indicators: 20 Early Lessons from Managerial Use
      A. Likierman
    5. A Star to Sail By?

      The Economist

  • Section 6: Who Should Benefit
    1. Stakeholder Capitalism
      W. Hutton
    2. Islamic Banking: An Overview
      S. A. Arar


Financial Strategy

Reviewed by Roland Buresund

OK ***** (5 out of 10)

Last modified: May 21, 2007, 3:04 a.m.

MBA litterature. Only for the people that must read it.


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