Equity Markets, Valuation, and Analysis

ISBN-13: 9781119632931 / Angielski / Twarda / 2020 / 448 str.

H. Kent Baker; Greg Filbeck; Halil Kiymaz

Spis treści

Acknowledgments xiii About the Editors xv About the Chapter Authors xvii Chapter 1 Equity Markets, Valuation, and Analysis: An Overview 1 H. Kent Baker, Greg Filbeck and Halil Kiymaz Introduction 1 About This Book 3 Structure of the Book 5 Summary and Conclusions 12 References 13 Part One Background Chapter 2 Ownership Structure and Stock Classes 17 Christopher J. Barnes, Ehsan Nikbakht and Andrew C. Spieler Introduction 17 Single-Class Common Equity 18 Dual-Class Common Equity 26 Summary and Conclusions 29 Discussion Questions 29 References 29 Chapter 3 Equity Markets and Performance 33 Jay T. Brandi and Xudong Fu Introduction 33 The Equity Market and the Economy 35 Market Indicators 39 Good Markets - Liquidity 40 Good Markets - Efficiency 41 Information Disclosure 43 Enforcement 43 Monetary Policies 44 Investments: Comparative Risk and Return 44 Stocks Versus Bonds: The Issuer's Perspective 47 Summary and Conclusions 48 Discussion Questions 48 References 48 Chapter 4 Securities Regulation 51 Douglas Cumming and Sofia Johan Introduction 51 Trading Rules and Rules Pertaining to Broker-Dealer Conduct 52 Surveillance 58 Enforcement 59 Impact of Trading Rules and Surveillance on Corporate Outcomes 59 Summary and Conclusions 60 Discussion Questions 61 References 61 Chapter 5 Investor Psychology and Equity Market Anomalies 63 Hunter M. Holzhauer Introduction 63 Investor Psychology: Bounded Rationality 64 Investor Psychology: Prospect Theory 65 Equity Market Anomalies: Violations of the EMH 67 Summary and Conclusions 73 Discussion Questions 74 References 74 Part Two Valuation and Analysis Chapter 6 Financial Statement Analysis and Forecasting 81 Somnath Das and Shailendra Pandit Introduction 81 Background 82 Technical Analysis-Based Forecasting 83 Time Series-Based Forecasting 83 Fundamental Analysis-Based Forecasting 85 Process of Analyzing Financial Statements 85 Evidence on the Usefulness of Financial Statement Analysis 86 Security Analysts and Financial Statement Analysis 88 Limitations of Using Financial Statement Analysis in Forecasting 90 Summary and Conclusion 91 Discussion Questions 92 References 92 Chapter 7 Fundamentals of Equity Valuation 97 Emmanuel Boutron, Alain Coën and Didier Folus Introduction 97 What is Equity Valuation? 97 Free Cash Flow-Based Valuation 101 Dividend-Based Valuation 104 Market-Based Valuation: Multiples and Ratios 106 Modeling the Required Asset Return 108 Option Theory-Based Valuation 110 Summary and Conclusions 111 Discussion Questions 111 References 111 Chapter 8 Company Analysis 113 David Craig Nichols Introduction 113 Three Steps Linking Business Activities to Equity Prices 113 Accounting Analysis 117 Fundamental Analysis 119 Summary and Conclusions 127 Discussion Questions 127 References 127 Chapter 9 Technical Analysis 131 David Lundgren Introduction 131 Background 131 Pulling It All Together: Fundamentals, Biases, and Trends 138 Summary and Conclusions 145 Discussion Questions 146 References 146 Chapter 10 Discounted Dividend Valuation 149 Elif Akben-Selçuk Introduction 149 The General Model 149 Constant Growth or Gordon Model 150 Multistage Models 151 Stochastic Models 155 Uses of Ddms 158 Empirical Tests of the Dividend Discount Model 160 Summary and Conclusions 161 Discussion Questions 162 References 162 Chapter 11 Free Cash Flow Valuation 165 Tom Barkley Introduction 165 General Approach to FCF Analysis 166 Four Special Cases of FCF Valuation Approaches 170 Summary and Conclusions 181 Discussion Questions 182 References 182 Chapter 12 Market-based Valuation 185 Sang Hoon Lee Introduction 185 Widely Used Valuation Multiples and Valuation Steps 186 Selecting Comparable Firms 190 The Efficacy of Different Multiples in Valuation 191 Common Factors Determining Different Multiples 195 Summary and Conclusions 199 Discussion Questions 199 References 199 Chapter 13 Residual Income Valuation 201 Shailendra Pandit and Somnath Das Introduction 201 History and Foundations of Residual Income 201 Computing Residual Income 203 Equity Valuation Using Residual Income 205 Numerical Example 206 Applying RI to Equity Valuation 207 Evaluation and Critique of Residual Income 208 Summary and Conclusions 211 Discussion Questions 212 References 212 Chapter 14 Private Company Valuation 215 Onur Bayar and Yini Liu Introduction 215 DCF Valuation Methods for Private Companies 216 The Comparable Firms Approach in Private Company Valuation 220 The Venture Capital Method for High-Growth Private Companies 224 Option Valuation for Private Companies 226 Summary and Conclusions 227 Discussion Questions 227 References 228 Part Three Equity Investment Models and Strategies Chapter 15 Equity Investing Strategies 231 Nicholas Biasi, Andrew C. Spieler and Raisa Varejao Introduction 231 Value Investing 232 Growth Investing 233 Growth at a Reasonable Price 235 Income Investing 236 Index Investing 236 Quantitative Trading 237 Technical Analysis 238 Options Strategies 239 ESG Investing 240 Summary and Conclusions 241 Discussion Questions 242 References 242 Chapter 16 Factor Investing 243 Aaron Filbeck Introduction 243 History 243 Factors of Prominence 246 Recent Factor Discoveries 253 Portfolio Implementation Considerations 256 Summary and Conclusions 259 Discussion Questions 260 References 260 Chapter 17 Smart Beta Strategies versus Alpha Strategies 263 Timoathy A. Krause Introduction 263 What is Smart Beta? 265 Empirical Evidence from Factor Investing and Smart Beta Studies 267 Recent Empirical Evidence from the U.S. ETF Market 271 Summary and Conclusions 274 Discussion Questions 274 References 274 Chapter 18 Activist and Impact Investing 279 Michael Sinodinos, Andrew Siwo and Andrew C. Spieler Introduction 279 Methods of Activism 280 Institutional Activists 281 Individual Activists 283 Impact Investing 284 Summary and Conclusions 289 Discussion Questions 289 References 289 Chapter 19 Socially Responsible Investing 291 Randolph D. Nordby Introduction 291 A Brief History of SRI in the United States 292 ESG Growth in Pooled Investment Vehicles 293 Responsible Investing Growth by Institutional Investors 294 The Performance of Sustainable Investments 294 Lack of Guidelines on Voluntary Nonfinancial Disclosure 296 ESG Disclosure and Asset Manager Valuation Methodology 296 ESG Disclosure Lacks Usefulness 297 Methods for Operationalizing ESG Issues 297 Fiduciary Duty and ESG Investing 299 ESG Integration for Equities 300 Considerations for Integrating ESG 300 Case Study 301 Summary and Conclusions 302 Discussion Questions 302 References 303 Chapter 20 Pooled Investment Vehicles 305 Joseph McBride, Michael Pain and Andrew C. Spieler Introduction 305 Open-End Mutual Funds 305 Closed-End Funds 309 Unit Investment Trusts 311 Exchange-Traded Funds 313 Summary and Conclusions 316 Discussion Questions 317 References 317 Part Four Special Equity Topics Chapter 21 Investing in Private Equity 321 Gaurav Gupta, Tianqi Jiang and Zhao Wang Introduction 321 Performance of PE Funds 322 Performance Persistence 324 Factors Driving PE Performance 325 Risk Factors of PE Funds 327 Summary and Conclusions 329 Discussion Questions 329 References 330 Chapter 22 Investing in Emerging Markets 333 Xiaohua Diao, Shantanu Dutta and Peng Cheng Zhu Introduction 333 Capital Flows to Emerging Markets 334 Issues Related to Capital Market Integration 334 Institutional Strategies for Better Investment Decisions 336 Political Connections, Investment Decisions, and Performance 338 Corporate Governance and Performance 340 Valuation Practices in Emerging Markets 340 Summary and Conclusions 341 Discussion Questions 342 References 342 Chapter 23 Disclosure Regulations in Emerging Economies and Their Impact onEquity Markets 347 Xiaohua Diao, Shantanu Dutta and Peng Cheng Zhu Introduction 347 Various Disclosure Regulation Approaches 348 Environmental and CSR Disclosure in Emerging Markets 349 Insider Trading, Disclosures, and Related Regulation 351 Information Disclosure Through Private In-House Meetings 354 Summary and Conclusions 356 Discussion Questions 357 References 357 Chapter 24 Equity Crowdfunding Investments 361 Dianna Preece Introduction 361 Types of Crowdfunding 361 The Jobs Act of 2012 363 Crowdfund Investment Opportunities and Incentives 365 Crowdfund Investment Challenges and Disincentives 366 Academic Research 369 Summary and Conclusions 371 Discussion Questions 372 References 372 Discussion Questions and Answers (Chapters 2-24) 375 Index 407

O autorze

H. KENT BAKER, CFA, CMA, is the University Professor of Finance at the Kogod School of Business at American University. Professor Baker is an award-winning author/editor of 36 books. GREG FILBECK, CFA, FRM, CAIA, CIPM, PRM, is the Samuel P. Black III Professor of Finance and Risk Management at Penn State Behrend, and serves as the director for the Black School of Business. HALIL KIYMAZ, CFA, is the Bank of America Professor of Finance at the Crummer Graduate School of Business at Rollins College.