《corporate governance and the value of firms》由会员分享，可在线阅读，更多相关《corporate governance and the value of firms（76页珍藏版）》请在金锄头文库上搜索。
1、HKUST Business School,K.C. John Wei,1,Corporate Governance and the Value of Firms -Some Experiences of U.S and Asia,Professor K.C. John Wei, PhD Tel: (852)-2358-7676; Fax: (852)-2358-1749 E-mail: johnweiust.hk Department of Finance, HKUST and Visiting Department of Finance, Peking University Prepare
2、d for CCER, Peking University November 8, 2003,HKUST Business School,K.C. John Wei,2,Profile of Prof. K.C. John Wei,Prof. K.C. John Wei received his PhD in Finance at the University of Illinois, Champaign-Urbana, in 1984. He served the University of Mississippi as an Assistant Professor from January
3、 1984 to June 1988. After serving the University of Miami as an Assistant Professor for one year, he moved to Indiana University, where he served as an Associated Professor from July 1989 to June 1992. Since July 1992, Prof. John Wei has been serving the HKUST Business School initially as an Associa
4、te Professor and later was promoted to full Professor. He served as Acting Head of the Department of Finance from January 2001 August 2002 and February June 2003. Prof. Wei has also been appointed the Director of the Centre for Asian Financial Markets since 1995. He was visiting University of Texas
5、at Austin from September to December 2002 and is currently visiting Guanghau School of Management, Peking University. With research focuses on empirical research in capital markets, derivatives and asset pricing of Asian and U.S. markets, Prof. Wei has produced a number of high quality papers on the
6、se areas. Many of these papers were published in top journals in finance and have made considerable contributions to the finance literature. He is an author of four books (in Chinese) on Hong Kong stock and warrants markets and Taiwanese stock market. In addition, Prof. Wei is a regular column write
7、r for the Hong Kong Economic Journal, a local newspaper specialised in financial news. On the consultancy activities, Prof. Wei has helped Hang Seng Bank to develop a personal financial planning model called “SmartInvest,” and HSBC to develop a financial planning model, called “Rule-Based Investment
8、 Solutions.” He also conducted a consultancy project initiated by HKSAR for APEC and a few projects for Hong Kong Stock Exchange. Prof. Wei have been involved executive teaching for HKUST, Peking University, Hong Kong Stock Exchange, Chinese provincial government officials, general corporate executi
9、ves, Xiean Jassen, Daimler/Chrysler, China Mobile, Aspire, and BenQ.,HKUST Business School,K.C. John Wei,3,Value creation and business strategies,Valuation Creation,Qijia,CEO,Xiushen,Zhiguo,Pingtianxia,Management team,Assets in place,Growth opportunity,Capital,People,Management skills Vision Integri
10、ty,Corporate governance Incentives,Restructuring Competitive advantages,M&A (external) Investment (internal) (ROICWACC) R&D,Equity,Debt,Central bank Commercial banks Investment banks Mutual funds Insurance companies,Valuation methods DCF Comparative measure ROA,Investors,Timing Cost of capital (WACC
11、) Financial engineering,CB,Capital markets,Objective/Strategy,Investor behavior Greed and fear Cognitive or heuristic bias,Focus vs Diversified (Cisco vs GE) OEM vs Brand Low vs high end,HKUST Business School,K.C. John Wei,4,Value creation via financial strategies,Dividend policy: Reinvestment,Share
12、holder value,Investment decision: Growth options,Financing decision: WACC,Corporate governance: Asymmetric information,Approaches to valuation,Mergers & Acquisitions,Value creation ROIC WACC,DCF (NPV) valuation Comparable valuation ROA,Restructuring (Strategy),Why value value?,Management discipline
13、Transparency Independence Accountability Responsibility Fairness Social responsibility,Strategies to create value Internal growth,What is your dream company? Focus vs diversified Core competence,HKUST Business School,K.C. John Wei,5,How to value a firm,The value of a firm with a constant grow rate i
14、s where NOPLAT = net operating profit less adjusted taxes EBIT = earnings before interest and taxes t = average tax rate WACC = weighed average cost of capital g = growth rate = reinvestment rate ROIC ROIC = return on new invested capital = NOPLAT/IC g/ROIC = reinvestment rate = rI,HKUST Business Sc
15、hool,K.C. John Wei,6,How to enhance the value of a firm,The MM formula How to enhance the value of a firm Increase operating efficiency (NOPLAT) Increase return on new invested capital (ROIC) Invest in new project only when ROIC WACC Increase the growth (g), rI = g/ROIC Prolong the period of competi
16、tive advantage (N) Reduce the cost of capital (WACC),HKUST Business School,K.C. John Wei,7,Value Drivers,Three value drivers: Abnormal profit (invest only when ROIC WACC): in the right industry Growth (g) or reinvestment: in the high growth industry Risk (WACC): (1) economy-wide risk (business cycle), (2) operating risk (degree of capital intensity), and (3) financing risk (leverage) Common mistake: Managers often ignore the cost of “equity” capital,HKU
