Business Analysis and Valuation: Using Financial Statements, Text and Cases [Hardcover]

Krishna G. Palepu (Author), Paul M. Healy (Author), Victor L Bernard (Author)

Book Description

Publication Date: July 31, 2003 | ISBN-10: 0324118945 | ISBN-13: 978-0324118940 | Edition: 3

Financial statements are the basis for a wide range of business analysis. Managers, securities analysts, bankers and consultants all use them to make business decisions. There is strong demand among business students for course materials that provide a framework for using financial statement data in a variety of business analysis and valuation contexts.

Editorial Reviews

About the Author

Krishna G. Palepu is the Ross Graham Walker Professor of Business Administration and Senior Associate Dean for International Development at the Harvard Business School, Harvard University. Prior to assuming his current administrative position, Professor Palepu held other positions at the school, including Senior Associate Dean, Director of Research, and Chair, Accounting and Control Unit.

Professor Palepu's current research and teaching activities focus on strategy and governance. In the area of strategy, his recent focus has been on the globalization of emerging markets. In the area of corporate governance, Professor Palepu's work focuses on how to make corporate boards more effective, and on improving corporate disclosure. Professor Palepu teaches these topics in several HBS programs aimed at members of corporate boards: "How to make corporate boards more effective, "Audit Committees in the new era of governance, "Compensation Committees: Preparing the challenges ahead."

Professor Palepu has done extensive research on mergers and acquisitions and corporate disclosure. Based on this work, he coauthored the book, Business Analysis and Valuation: Text and Cases, which won the American Accounting Association's Wildman Award for its impact on management practice, as well as the Notable Contribution to the Accounting Literature Award for its impact on academic research. This book, translated into Chinese, Japanese, and Spanish, is widely used in leading MBA programs all over the world. It is accompanied by a business analysis and valuation software model published by the Harvard Business School Publishing Company.

Professor Palepu has a doctorate from the Massachusetts Institute of Technology, and an Honorary Doctorate from the Helsinki School of Economics and Business Administration.

Paul M. Healy is James R. Williston Professor of Business Administration, and
Unit Head, Accounting and Management, at Harvard Business School, Harvard University. Professor Healy joined Harvard Business School as a Professor of Business Administration in 1997. Professor Healy received his B.C.A. Honors (1st Class) in Accounting and Finance from Victoria University, New Zealand in 1977, his M.S. in Economics from the University of Rochester in 1981, his Ph.D. in Business from the University of Rochester in 1983, and is a New Zealand CPA. In New Zealand, Professor Healy worked for Arthur Young and ICI. Prior to joining Harvard, Professor Healy spent fourteen years on the faculty at the M.I.T. Sloan School of Management, where he received awards for teaching excellence in 1991, 1992, and 1997. He is the co-author of one of the leading financial analysis textbooks, Business Analysis & Valuation. In 1993-94 he served as Deputy Dean at the Sloan School, and in 1994-95 he visited London Business School and Harvard Business School.

Professor Healy's research includes studies of the role and performance of financial analysts, how firms' disclosure strategies affect their costs of capital, the performance of merging firms after mergers, and managers' financial reporting decisions. His work has been published in The Accounting Review, Journal of Accounting and Economics, Journal of Accounting Research, and Journal of Financial Economics. In 1990, his article "The Effect of Bonus Schemes on Accounting Decisions," published in Journal of Accounting and Economics, was awarded the AICPA/AAA Notable Contribution Award. His text Business Analysis & Valuation was awarded the AICPA/AAA's Wildman Medal for contributions to the practice in 1997 and the AICPA/AAA Notable Contribution Award in 1998

Victor L. Bernard, who passed away November 14, 1995, was Director of the Paton Accounting Center at the University of Michigan and Director of Research for the American Accounting Association.

Product Details

• Hardcover: 928 pages
• Publisher: South-Western College Pub; 3 edition (July 31, 2003)
• Language: English
• ISBN-10: 0324118945
• ISBN-13: 978-0324118940
• Product Dimensions: 10.3 x 8.3 x 1.4 inches
• Shipping Weight: 3.7 pounds
• Average Customer Review: 4.1 out of 5 stars  See all reviews (17 customer reviews)
• Amazon Best Sellers Rank: #850,200 in Books (See Top 100 in Books)

Customer Reviews

Most Helpful Customer Reviews

22 of 23 people found the following review helpful:

4.0 out of 5 stars Useful if cumbersome, December 15, 2002

By 

Charles A. Wilcox "seattle starboard" (Seattle, WA USA) - See all my reviews
(REAL NAME)   

This review is from: Business Analysis and Valuation: Using Financial Statements, Text and Cases (Hardcover)

This review applies to the edition WITH CASES. This isn't recommended for anyone who is just starting out with choosing investments. Beginners might be better off with a more general overview of financial statement analysis (FSA) like Higgins' "Analysis of Financial Statements" or Fraser and Omriston's "Understanding Financial Statements".

This was one of two textbooks used in a financial statement analysis course I took for my MBA. Most chapters are down-to-earth and as a whole the book is well-written.

The other text we used was Penman's "Financial Statement Analysis and Security Valuation" which was also a great resource as far as gaining a basic understanding of the mechanics of financial statements and how to build a valuation model.

I contrast the two books because while Penman provides a run-down of several different models analysts can use (and does a good job of arguing for the Residual Income Model of valuation model as being the best), Palepu delves into the implications of companies' choices of accounting methods and provides more insight into what different kinds of businesses should look like in terms of their financial statements.

The cases at the end of each chapter add a lot of value to the text because they get students to focus on the specific issues detailed in each chapter. By picking apart different companies' financial statements we learned to use financial statements to assess the success or failure of companies' efforts to carry out their business strategies.

I rate it "Good - 4 stars"

12 of 13 people found the following review helpful:

4.0 out of 5 stars A good book blending accounting, investing and finance !, August 19, 1999

By 

Jurgen Schraepen - See all my reviews

This review is from: Business Analysis & Valuation (Paperback)

This book is also a bestseller in Japan. Here someone called it "The only textbook now available that broadly explains accounting figures in the valuation model of the firm". This is a good book for beginners. Although the contents might be somewhat easy, the order in which it is written is very meaningful. You will probably have read everything in this book somewhere else, but certainly not in this order ! The importance of the ideas in this book go beyond its contents !!

3.0 out of 5 stars Kindle Edition does not include cases, January 19, 2012

By 

dwhite78 - See all my reviews

Amazon Verified Purchase

This review is from: Business Analysis and Valuation: Using Financial Statements, Text and Cases (with Thomson ONE Access) (Hardcover)

This is a review of the Kindle edition of the textbook rather than the content of the book itself. The Kindle edition does NOT include the cases, even though it's offered as a digital copy of the printed version that DOES include the cases.

Amazon's customer service was very helpful and prompt in issuing a refund for the Kindle copy. So, overall, two stars for the error in offering the Kindle book as equivalent to the printed version, and five stars to Customer Service for their assistance.