Contents

Introduction

Section 1 Trends in Finance Theory

Section Overview

Janette Rutterford

1 The World was their Oyster: International Diversification Pre-World War I

Janette Rutterford

CASE STUDY 1 Global Evidence on the Equity Risk Premium

Elroy Dimson, Paul Marsh and Mike Staunton

2 Behavioral Finance

Jay R. Ritter

CASE STUDY 2 Do Fundamentals – or Emotions – Drive the Stock Market?

Marc Goedhart, Timothy Koller and David Wessels

Section 2 Adding Value Through Investment

Section Overview

Janette Rutterford

3 Why Bad Projects Are So Hard to Kill

Isabelle Royer

4 Realizing the Potential of Real Options: Does Theory Meet Practice?

Alexander Triantis

CASE STUDY 3 Real Options

K. Leslie and M. Michaels

5 Mergers, MNEs and Innovation: The Need for New Research Approaches

Christian Berggren

CASE STUDY 4 Why Most Cross-Border Deals End in Tears

Simon London

Section 3 Adding Value Through Financing

Section Overview

Janette Rutterford

6 The Capital Structure Puzzle: Another Look at the Evidence

Michael J. Barclay and Clifford W. Smith, Jr.

7 Disappearing Dividends: Changing Firm Characteris or Lower Propensity to Pay?

Eugene F. Fama and Kenneth R. French

8 The Value of Share Buybacks

Richard Dobbs and Werner Rehm

CASE STUDY 5 Capital Ideas

Keith Boyfield

CASE STUDY 6 Death of the Dividend?

Adrian Wood

CASE STUDY 7 Sciona: A Venture Capital Case Study

Colin Bond

9 Initial Public Offerings

Jay R. Ritter

CASE STUDY 8 Google Press Cuttings

(A) Are You About to Get Googled?

Tony Glover

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