Corporate DecisionMaking with Macroeconomic Uncertainty Performance and Risk Management

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.

Alternative names:

• ISBN Corporate Decision-Making with Macroeconomic Uncertainty ( Performance and Risk Management ) 256 pages English