Corporate Finance Research Papers
Corporate finance research papers pdf cover a wide range of topics related to effective financial management within a company. These include tools for risk management, trends in advance finance, and investment analysis. Read on to learn more about these important topics.
This paper considers the choice of debt and equity as financing instruments in a project-finance context. It is argued that transaction-cost reasoning supports the use of debt (rules) to finance redeployable assets, while non-redeployable assets are financed by equity (discretion).
Financial investment analysis is the process of evaluating an opportunity to determine its profitability and potential risk. This analysis aims to help individuals and organizations take informed decisions regarding the placement of their investments. It includes analyzing data from reports and financial statements and using various tools like valuation models and technical analysis charts.
Using a bottom-up approach, investors examine the microeconomic factors of individual companies to find potential investments. This technique forces investors to consider the company’s financial health, analyze its products and services, and study the economic conditions of the industry. It also stresses the importance of investing in stable companies that can grow over time.
Another method of investment analysis is top-down. This approach begins with a general overview of the economy and market trends, and then zeros in on specific sectors or individual companies that will benefit from those trends. For example, a top-down investor might conclude that the financial sector will perform better than the industrial sector. This would prompt the investor to allocate more capital to financial stocks.
Corporate Risk Management
Corporate risk management is the collection of practices that a company uses to minimize its financial losses. These include risk assessment, monitoring and control. All employees, including managers and executives, must perform these practices to prevent loss exposure. However, a company cannot prevent all risks.
This section should describe the organizational context in which the Corporate Risk Profile was developed and provide a rationale for integrated risk management in the organization. It should also address why the organization selected specific approaches and techniques, and how they were well-suited to the requirements of the organization. If more detail is required, additional explanation should be provided in the Appendix.
This section identifies the top risks to which the organization is exposed and provides a description of each. It may also contain a description of the risk attributes and their impact on the objectives and operations of the organization. This section should be kept brief and concise. The risk inter-relationships should be described using a narrative and/or matrix diagrams, as appropriate.