Quantitative Corporate Finance

by John B. Guerard Jr., Anureet Saxena, Mustafa N. Gïltekin

Overview

This textbook presents a comprehensive treatment of the legal arrangement of the corporation, the instruments and institutions through which capital can be raised, the management of the flow of funds through the individual firm, and the methods of dividing the risks and returns among the various contributors of funds.

Now in its third edition, the book covers a wide range of topics in corporate finance, from time series modeling and regression analysis to multi-factor risk models and the Capital Asset Pricing Model. Guerard, Gultekin and Saxena build significantly on the first edition of the text, but retain the core chapters on cornerstone topics such as mergers and acquisitions, regulatory environments, bankruptcy and various other foundational concepts of corporate finance.

New to the third edition are examinations of APT portfolio selection and time series modeling and forecasting through SAS, SCA and OxMetrics programming, FactSet fundamental data templates. This is intended to be a graduate-level textbook, and could be used 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.

Product Details

ISBN-13:	9783030872717
Publisher:	Springer International Publishing
Publication date:	08/02/2022
Edition description:	3rd ed. 2022
Pages:	657
Product dimensions:	6.10(w) x 9.25(h) x (d)

About the Author

John B. Guerard, Jr., Ph.D. is Chairman, Scientific Advisory Board at McKinley Capital Management, in Anchorage, Alaska. He is an Affiliate Faculty member in the Computational Finance and Risk Management Program, the Department of Applied Mathematics, The University of Washington, US. John is a graduate of Duke University earned his Ph.D. at The University of Texas, Austin. Dr. Guerard has published several monographs, including Corporate Financial Policy and R&D (Wiley), Introduction to Financial Forecasting in Investment Analysis (Springer), and Portfolio and Investment Analysis using SAS (SAS Press), and edited The Handbook of Portfolio Construction: Contemporary Applications of Markowitz Techniques (Springer). John serves an Associate Editor of the Journal of Investing and The International Journal of Forecasting.

Anureet Saxena, Ph.D. in Management Science from Carnegie Mellon University, and CFA charter holder, is the Director of Quantitative Research at McKinley Capital Management, LLC. Dr. Saxena has published several papers in peer-reviewed journals such as Mathematical Programming, Journal of Portfolio Management, Journal of Investment Management, Journal of Investing and Journal of Risk.

Mustafa Gultekin, Ph.D. in Finance, New York University, has published in the Journal of Finance, Journal of Financial Economics, the Journal of Financial and Quantitative Analysis, Management Science, and Research in Finance.

Table of Contents

Chapter 1. Introduction: Capital Formation, Risk, and the Corporation.- Chapter 2. The Corporation and Other Forms of Business Organization.- Chapter 3. The Corporation Balance Sheet.- Chapter 4. The Annual Operating Statements: The Income Statement and Cash Flow Statement.- Chapter 5. Financing Current Operations and Efficiency Ratio Analysis.- Chapter 6. Financing Current Operations and the Cash Budget.- Chapter 7. Capital and New Issue Markets.- Chapter 8. The Equity of the Corporation: Common and Preferred Sk.- Chapter 9. Long-Term Debt.- Chapter 10. Debt, Equity, the Optimal Financial Structure and the Cost of Funds.- Chapter 11. Investing in Assets: Theory of Investment Decision Making.- Chapter 12. Regression Analysis and Estimating Regression Models.- Chapter 13. Time Series Modeling and the Forecasting Effectiveness of the U.S. Leading Economic Indicators.- Chapter 14. Risk and Return of Equity and the Capital Asset Pricing Model.- Chapter 15. Multi-Factor Risk Modelsand Portfolio Construction and Management.- Chapter 16. Options.- Chapter 17. Real Options.- Chapter 18. Mergers and Acquisitions.- Chapter 19. Liquidation, Failure, Bankruptcy, and Reorganization.- Chapter 20. Corporation Growth and Economic Growth and Stability.- Chapter 21. International Business Finance.- Chapter 22. Management-Skholder Relations: Is Optimal Behavior All that is Necessary?.

What People are Saying About This

From the Publisher

This book is a must have for practitioners and students of corporate finance. Nowhere will you find the cutting edge of research laid out as clearly and as expertly as here. Building on the masterly exposition of the second edition, the third edition takes you into a post-Covid world, where trailblazing methods show just what is possible in empirical analysis – your horizons will be expanded. If you want to get inside the brain of the most influential quantitative financial economists this book is a must read. — Jennifer L. Castle, Magdalen College, University of Oxford

An eminently wise and readable guide to current thinking about how financial markets work and appropriate financial decisions for corporations and investors. —Ed Tower, Professor Emeritus of Economics at Duke University

John Guerard's Quantitative Corporate Finance provides a modern overview of corporate finance in a quantitative approach. Through his masterful writing, he seamlessly connects the theory to the application and illustrates all the concepts and techniques in a very understandable way. The comprehensiveness of this book is exceptional. It will most likely become a standard reference in this subject. — Tim Leung, University of Washington, Seattle

The third edition of Quantitative Corporate Finance, by John Guerard, Anureet Saxena and Mustafa Gultekin, is a book of many talents. In over 20 chapters the readers go through an escalating series of terms, concepts, methods and techniques that are used in modern corporate finance - building from foundational material up to and including the most recent advances in corporate management and quantitative analysis. I believe that the sequencing of the material, when read in order, can be an eye-opener for the beginner or a tasteful refresher (and reminder) to the seasoned professional for the value of having an all-rounded, general overview of the field. The book can serve equally well as a text for many different courses in corporate finance, as a graduate textbook, as a reference work for the professional, and also as a reference work for the data analyst who knows more statistics and quant methods than finance. In the latter case it can serve as a significant booster on the quality, implications and interpretation of quantitative work in the real world, as needed. This is a rare gem, highly contemporary but with a classic flair of an old-school book which requires a certain devotion to go over without skipping pages - highly recommended! — Dimitrios D. Thomakos, National and Kapodistrian University of Athens