Very few firms make any attempt in their annual reports to inform market participants about the impact of macroeconomic developments on performance. However, the market is not oblivious to this fact, so the firm, as well as financial analysts, need to pay attention. Corporate Decision-Making with Macroeconomic Uncertainty: Performance and Risk Management develops and presents in an easily comprehensible way the essential elements of a corporate strategy for managing uncertainty in the macroeconomic environment. This Macroeconomic Uncertainty Strategy, or MUST, enhances firm value by allowing management and external stakeholders to distinguish between changes in the intrinsic competitiveness of the firm and changes in performance caused by macroeconomic fluctuations. These fluctuations, manifested as changes in exchange rates, interest rates, and inflation rates, are beyond management's control, but they have a substantial impact on performance. The book includes methods to identify the impact of these fluctuations, to develop strategies for macroeconomic risk management, to develop reports to external stakeholders, to evaluate the relative performance of subsidiaries and business units in multinational companies, and to evaluate performance as part of the due diligence process in an M & A context. The authors' use of value-based management, various performance measurements, and the concept of real options makes the book rich and compelling.
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Preface 1: Macroeconomic Uncertainty in a Corporate Perspective 2: Concepts of Macroeconomic Risk and Exposure 3: Traditional Approaches to Measuring Macroeconomic Exposure 4: Measuring Macroeconomic Impact on the Firm - a Comprehensive Approach 5: Measuring Macroeconomic Exposure - The Case of Volvo Cars 6: Hedging Macroeconomic Exposure 7: Strategies for Exposure Management 8: Recognizing Macroeconomic Fluctuations in Value-Based Management 9: What Shareholders Ought to Know 10: Macroeconomic Uncertainty Strategy (MUST) Analysis - a Summary References Index
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Produktdetaljer

ISBN
9780195335743
Publisert
2008
Utgiver
Vendor
Oxford University Press Inc
Vekt
549 gr
Høyde
241 mm
Bredde
160 mm
Dybde
18 mm
Aldersnivå
UU, UP, P, 05, 06
Språk
Product language
Engelsk
Format
Product format
Innbundet
Antall sider
256

Biographical note

Lars Oxelheim is Professor of International Business and Finance at Lund University. He is an affiliate of the Research Institute of Industrial Economics (IUI), Stockholm and of the Fudan University, Shanghai. Clas Wihlborg is Professor of Finance at the Copenhagen Business School and Director of the Center for Law, Economics and Financial Institutions. He has held faculty positions at leading US and European universities.