Verified Document

Financial Theories Financial Theory General Essay

This is not ture for utilities companies and other monopolistic firms where new equities are rare. For the "Current Examples" in our table, do we need to find specific company examples that exist today or have happened in the last 2-3 years? Or will it suffice to give a theoretical example of a measurement in a firm that fits the model.

For example, would this be OK.

Efficiency Theory Example

- Production returns based on shared, variable, and per unit costs divided by the total output of a factory in a given period of time.

Instructor Response: I am ok with any example which shows that you understand the theory / concept.

References

Chew, DH (Ed.). (2001). The new corporate finance: Where theory meets practice (3rd ed.). New York, McGraw-Hill Irwin.

Copeland, T. & Weston, J.F., (1988). Financial theory and corporate policy (3rd ed.). Reading, MA. Addison-Wesley Publishing Company.

Fabozzi, R., & Modigliani, F. (1996). Capital markets institutions and instruments (2nd ed.). New Jersey, Prentice Hall.

Fama, E. And K. French. (2001). Disappearing dividends: Changing firm characteristics or lower propensity to pay," Journal of Financial Economics, 60, 3-43

Keown, A., Scott, D., Martin, J., & Petty, J.W. (1994). Foundations of finance. New Jersey, Prentice Hall.

Mayo, H. (2003). Investments an introduction (7th ed.). Australia, Thomson-South-Western.

Palepu, K.G., & Healy, P.M. (2008). Business analysis and valuation (4th ed.). Mason, OH: South-Western

Ray, R. (2001, March 22). Economic Value Added: Theory, evidence, a missing link. Review of Business, 22(1/2), 66. Retrieved from Business Source Complete database.

Statman, M., Fisher, K., & Anginer, D.. (2008). Affect in a Behavioral Asset-Pricing Model. Financial Analysts Journal, 64(2), 20-29,1. Retrieved July 4, 2010, from ABI/INFORM Global. (Document ID: 1461834661).

Huberman, Gur., Wang, Zhenyu (2005). Arbitrage Pricing Theory. University of Columbia.

Beenstock, Michael; Kam-Fai Chan. (May 1986). Testing the Arbitrage Pricing Theory in the United Kingdom....

Oxford Bulletin of Economics & Statistics, Vol. 48 Issue 2, p121-141
Jensen, Michael; Meckling, William. (1976) Theory of the Firm: Managerial behavior, agency costs and ownership structure. Journal of financial economics. Vol 3(4). pp 305-360.

Poza, E.J., Hanlon, S., & Kishida, R. (2004). Does the family business interaction factor represent a resource or a cost? Family business review, 17(2), 99-118.

Fama, E.F. (1995). Random walks in stock market prices. Financial analysts journal, 51(1), 75-

79.

Ball, R. (2001). The theory of stock market efficiency: accomplishments and limitations. In D.

H. Chew (Ed.), The new corporate finance: where theory meets practice (pp. 20-33).

New York: McGraw-Hill Irwin.

Madden, Bartley. (1998). The CFROI Valuation Model. The Journal of Investing. Vol 7(1). pp31-44.

Madden, Bartley. (1999). CFROI Valuation: a total system approach to valuing the firm. Publisher: Butterworth-Heinemann.

Salmi, Timo; Ilkka, Virtanen (2001). Economic Value Added: A simulation analysis of the trendy, owner-oriented management tool. Acta Wasaensia No. 90, 33

Lin, Chen; Zhilin, Qiao. (2008). Empirical Study of Integrated EVA Performance Measurement in China. Canadian Social Science. 4(2).

Jagannathan, Ravi; Wang, Zhenyu. (1996). The Conditional CAPM and the Cross-Section of Expected Returns. The Journal of Finance. 51(1). pp3-53.

Rozeff, M.S., Kinney, W.R. (1976) .Capital market seasonality: The case of stock returns. Journal of Financial Economics 3, 379-402

Malkiel, Burton. (2003). The Efficient Market Hypothesis and its Critics. Princeton University Working Paper.

Schon, Dennis. (2007). The Relevance of Discounted Cash Flow and Economic Value Added for the Evaluation of Banks. Publisher: GRIN, Verlag.

Odean, T. (1998): Volume, Volatility, Price, and Profit When All Traders Are Above Average. The Journal of Finance, Vol. LIII, No. 6, 1887-1934.

Bhattacharya, Sudipto. (1988). Corporate Finance and the Legacy of Miller and Modigliani. The Journal of Economic Perspectives, Vol. 2(4), pp. 135-147.

Sources used in this document:
References

Chew, DH (Ed.). (2001). The new corporate finance: Where theory meets practice (3rd ed.). New York, McGraw-Hill Irwin.

Copeland, T. & Weston, J.F., (1988). Financial theory and corporate policy (3rd ed.). Reading, MA. Addison-Wesley Publishing Company.

Fabozzi, R., & Modigliani, F. (1996). Capital markets institutions and instruments (2nd ed.). New Jersey, Prentice Hall.

Fama, E. And K. French. (2001). Disappearing dividends: Changing firm characteristics or lower propensity to pay," Journal of Financial Economics, 60, 3-43
Cite this Document:
Copy Bibliography Citation

Related Documents

General Motors Company, Commonly Called As GM
Words: 3009 Length: 10 Document Type: Case Study

General Motors Company, commonly called as GM is one of the largest automobile manufacturers in the world. It is an American multinational corporation headquartered in Detroit, Michigan. It has business operations in more than 157 countries around the Globe. It was founded in 1908 as General Motors Corporation; and renamed as General Motors in 2009. The top brands of the company include Chevrolet, Isuzu, GMC, Jie Fang, Cadillac, Vauxhall, Baojun,

Financial Resource Management Reaching a Financial Decision
Words: 2362 Length: 8 Document Type: Essay

Financial Resource Management Reaching a financial decision regarding heath care services All forms of industries deemed financial management as expressive in origin till the 1960's. Its basic and sole role was to ensure financing for completing the business's operatives and functions. The department for business planning or marketing would project a net total for meeting the services and meeting daily demands; managers would calculate the assets required to complete a given project

Financial Scandals and Management Financial Management Financial
Words: 3120 Length: 11 Document Type: Essay

Financial Scandals and Management Financial Management Management Financial Actions, Controls, and Decisions Financial Scandals and Management Following the rise of financial scandals in the recent past, external and internal audits are carried out to review the management's financial controls and actions, and keep tab of the outside and internal auditors. However, despite the best efforts, accounting scandals like the Cendant Corporation's $300 million bogus revenue indicate that external auditors and managers are not doing

Theory Free Market Fairness for the Free
Words: 2230 Length: 6 Document Type: Essay

Theory Free Market Fairness for the Free New World When choosing between theories of distributive justice, Rawls' "Justice as Fairness" and Tomasi's "Free Market Fairness," Tomasi's theory best expresses the democratic ideal of society as a system of social cooperation between free and equal persons. In the 21st century global economic landscape, a very popular and profitable trend is "going green." Going green includes making improvements to operations of organizations that promote

Financial Analysis of International Airlines
Words: 5321 Length: 19 Document Type: Thesis

The company's promotional literature emphasizes the synergistic effects of this corporate structure: "IAG combines the two leading airlines in the UK and Spain, enabling them to enhance their presence in the aviation market while retaining their individual brands and current operations. The airlines' customers benefit from a larger combined network for both passengers and cargo and a greater ability to invest in new products and services through improved financial

Financial Risk the Financial Ratio Categories Are
Words: 1742 Length: 5 Document Type: Essay

Financial Risk The financial ratio categories are Liquidity, Activity, Profitability, and Coverage (Kieso, Weygant, & Warfield, 2008). These ratios are comparisons of different financial accounts that show financial performance measures in different areas. Fluctuations of these ratios can be red flags. These fluctuations can show increases or decreases in performances. Increases could indicate growth, but decreases could show negative signs in performance levels that need to be analyzed and addressed. Liquidity,

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now