Synopses & Reviews
Research and development (R&D) expenditures can be difficult to justify, even more so in an environment that combines increased competition and stockholder pressure with continually tightening financial margins. The Second Edition of Corporate Financial Policy and R&D Management examines the vital connections between R&D management and corporate financial policy, and provides important insights on how firms can effectively allocate resources while continuing to meet the R&D requirements of a competitive marketplace.
Strategic decision makers of a firm seek to allocate resources in accordance with a seemingly incompatible set of objectives, attempting to manage dividends, capital expenditures, and R&D activities while minimizing reliance on external funding to generate future profits. Corporate Financial Policy and R&D Management, Second Edition provides CIOs, COOs, financiers, and financial managers with:
- Revised and expanded material on the relationship among financial policies, analyses, and forecasts in creating efficient portfolios and enhancing stockholder wealth
- An econometric model that analyzes and verifies the interdependency among decisions concerning R&D, investment, dividends, and new debt financing
- Comparisons of the risk/return trade-off in the market performance of R&D intensive stocks, such as Johnson &Johnson, IBM, and DuPont
- Techniques for constructing a socially responsible portfolio with efficiency characteristics that are virtually identical to those of an unscreened portfolio
- A CD-ROM containing case studies along with interactive toolsinvaluable as an independent study aid
Corporate Financial Policy and R&D Management, Second Edition offers an up-to-date and one-of-a-kind perspective on current corporate R&D management and financial policy. Drawing on U.S. corporate results over the past three-plus decades, it offers a framework for the evaluation of earnings forecasting and R&D expenditureand makes a convincing case for the statistically significant relationship between R&D investments and stockholder wealth creation.
Synopsis
Provides a comprehensive framework for integrating engineering and R&D Management into corporate financial plans. Written by individuals with educational backgrounds in technology management, who now work for investment consulting firms. The authors give insight into the melding of a strategy for technology management which combines knowledge of the financial workings of an organization. This is the only book available to tie these two critical business aspects together under one cover.
Synopsis
One of the most basic--and difficult--of corporate challenges is to manage dividends, capital expenditures, and R&D activities while keeping external funding under control and generating profits. How well a company handles this complex balancing act can spell the difference between success and failure.
This pioneering book examines the vital connections between technology management and corporate financial policy, offering a comprehensive framework for the evaluation of earnings forecasting and R&D expenditure. Based on the authors' extensive real-world research on companies in the United States, Japan, and the other G7 countries, it illustrates the interdependence of R&D, capital investment, dividend, and new debt financing decisions and details financial modeling techniques for the determination and analysis of resource allocation.
R&D Management and Corporate Financial Policy offers an invaluable look at current corporate R&D practices, with important insights on how firms can meet the R&D challenge of their competitors. It also applies the results of the authors' research to security valuation and portfolio construction strategies.
Offering a fresh perspective on R&D management and financial policy, this book is essential reading for corporate R&D specialists, strategic planning staff, and investment professionals.
Synopsis
A timely guide for those investing in research and development.
Completely updated and expanded, this edition examines the relationship between managing research development (R&D) and sustaining sound financial policy. Through extensive fieldwork and consulting, the author demonstrates how to balance and manage R&D efforts, capital investment, and new debt financing decisions. He also offers a framework for understanding the interdependence between these elements and tools that include financial modeling techniques for determining resource allocation.
Synopsis
CORPORATE FINANCIAL POLICY AND R&D MANAGEMENT
SECOND EDITION
Corporate Financial Policy and R&D Management, Second Edition analyzes the factors affecting research and development (R&D) expenditures for U.S. corporations between 1971 and 2003, and the impact these expenditures have had on stockholder wealth creation. This comprehensive book also offers a framework for understanding the interdependence between key elements, along with financial modeling techniques and other valuable tools for making vital resource allocation decisions.
Drawing from updated and more complete databases than the landmark first edition, and now including a comprehensive CD-ROM with case studies and analysis, this new edition explores:
- Ratio analysis
- Profits and financial risk
- Statistical analysis, modeling, and simultaneous equations
- Modern Portfolio Theory and multi-factor risk models
- The optimization of efficient portfolios
- Potential added risks and returns of socially responsible investing
Corporate Financial Policy and R&D Management, Second Edition provides financial professionals with the updated tools and knowledge necessary to simultaneously manage dividends, capital expenditures, and R&D activitiesall while generating profits and keeping external funding under control.
About the Author
JOHN B. GUERARD JR. is a faculty member at Rutgers University and a financial consultant to several financial institutions and money managers, including serving on the Virtual Research team of GlobeFlex Capital Management, Inc. Guerard has served on the faculty of the University of Virginia and Lehigh University, as well as in research departments at Drexel, Burnham, Lambert, Daiwa Securities Trust Company, and Vantage Global Advisors, Inc. While serving as director of quantitative research at Vantage Global Advisors, Inc, Guerard was awarded the first Mosokowitz Prize for research in socially responsible investing. He has published several articles in the International Journal of Forecasting, Management Science, Research in Finance, the Journal of Forecasting, the Journal of Investing, and the Financial Analysts Journal. Guerard is a coauthor of several textbooks, including the Handbook of Financial Modeling, and Quantitative Corporate Finance. He serves as an Associate Editor of the International Journal of Forecasting and the Journal of Investing and as an adjunct faculty member in the Graduate School of Management at Rutgers University and the Executive Master's in Technology Management (EMTM) at the University of Pennsylvania.
Table of Contents
R&D Management and Corporate Financial Policy.
R&D and Technological Innovation in U.S.
Industry: Are Firms Really Getting More for Less?
Meet Your Competition: The IRI/CIMS R&D Survey for FY 1995.
The Interdependencies Among Corporate Financial Policies: Empirical Evidence Concering the United States, Japan, and Major European Economies.
Comparing Census/NSF R&D Data with Compustat R&D Data.
More on the Interdependencies Among Corporate Financial Policies: The Case of Effective Debt.
Historical Data and Analysts' Forecasts in the Creation of Efficient Portfolios.
Estimation of Efficient Market-Neutral Japanese and U.S.
Portfolios.
The (Not So Special) Case of Social Investing.
Summary and Conclusions.
Index.