Book Reviews Asia-Pacific Journal of Management

Research and Innovation

16(2) 167–170, 2020
© 2020 Asia-Pacific
Institute of Management
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DOI: 10.1177/2319510X20930887
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I.M. Pandey (Ed.), Financial Management, Eleventh including the nature of financial management, value and
Edition. India:Vikas Publishing House, 2015, 946 pp., return, valuation of bonds and shares, risk and return
ISBN: 978-8125937142 (Paperback). together with an overview of capital market theory. The
strong cornerstone developed in the initial section assists
In the emerging period of financial management, the scope the readers in understanding the theories and concepts
was circumscribed to financing of organisational activities regarding the financial management decisions and value
through numerous available sources and the same was the creation discussed in the later sections.
focus of many textbooks where fund raising instruments Section 2 that contains Chapters 8 through 13 of this
and institutions were heavily addressed. Later on, with book discusses various concepts and theories in relation to
the recognition of the strategic importance of financial investment decisions that is one of the main decisions in
decision-making and policies on the success of organisa- financial management: capital budgeting, cost of capital,
tions, the emphasis on financial management theories and forecasting of cash flows for investment decisions, risk
practical applications was radically enhanced. analysis in capital budgeting and real options, investment
One of the foremost authors in contemporary financial strategies and process. The basic concepts of investment
management is I.M. Pandey, who holds the position of decisions are discussed initially and they are followed by
Director General at the Delhi School of Business and the several complexities involved. The financing and dividend
Vivekananda Institute of Professional Studies. He has pub- decisions are presented in Section 3, where various policies
lished books related to financial management in numerous and theories on financial and operating leverage, capital
fields and his focus here is on ‘financial management’. The structure and dividends are extensively discussed together
first edition of this book published in 1978 was one of the with practical examples.
textbooks that covered a gigantic area breaking the status Section 4 elaborates on capital markets and different
quo of confining to financing decision in financial manage-
sources of long-term financing: shares, debentures, term
ment and properly linking theoretical foundation with their
loans, convertible debentures, warrants, asset-based financ-
practical applications. Ten new editions have built on this
ing and venture capital financing. The basic concepts are
initial foundation that addresses additions to the theory and
discussed with special focus on the practical scenarios and
the emerging practical areas to provide a comprehensive
examples.
study text based on the analytical approach to corporate
finance decision-making. The practical implications of fina- Section 5 focuses on financial and profit analyses with
ncial decisions are systematically addressed with sound theo- special emphasis on financial statements, financial state-
retical underpinnings on such decisions. ment analysis and financial planning and strategy. An over-
The primary goal of this book has remained the same view about the financial statements is provided and it is
from its initial edition and it is to present a comprehensive followed by a discussion of analysis of financial statements
coverage of key concepts and theories in financial manage- with different types of ratios together with DuPont analy-
ment in a simple and easy-to-understand manner, so that sis, comparative statement analysis, trend analysis, and
the content is interesting and it can be easily grasped by inter firm analysis.
readers and practically applied with a better understanding Section 6 discusses the working capital management deci-
about the logic behind the decisions. The organisational sion by emphasising on principles of working capital man-
structure of this book needs to be reviewed to evaluate the agement, receivables management and factoring, inventory
level of achievement of the objective. This 946-page book management, cash management and financing of work-
consists of eight sections under which several chapters are ing capital. Corporate restructuring, merges and acquisitions,
presented, followed by the annexures placed under final derivatives for managing financial risk, international finan-
section. The sections are logically arranged in a readable cial management, creating and enhancing shareholder value
manner so as to maintain the flow among the chapters. and corporate governance are discussed in Section seven.
Section 1 of this book focuses on valuation and it All the chapters consist of a formal structure designed to
discusses the fundamental areas in financial management provide a more meaningful understanding to the readers,
168 Book Reviews

beginning systematically with simple concepts of a postgraduate students to systematically understand the key
particular chapter and followed by complex theories concepts of financial management. The author uses many
built on the basic understanding to give a holistic represe- real life examples and mini cases to offer a better oppor-
ntation to the reader. The chapters are designed to ensure tunity to the readers to link the complex theories with its
the achievement of intended objectives provided at the practical applications. As mentioned earlier, additional
beginning of the chapter and the approach and design of detailed information is provided as supportive reading
the theories of each chapter are remarkably presented material to ensure the fulfilment of the learning outcomes
throughout the textbook. The spreadsheet applications that of the textbook. It methodically contributes a high level
provide analytical outcomes and high level of accurate of knowledge for the field of financial management and
information for decision-making are embedded in the rigorously aids the students and practitioners to gather
chapters to provide a practical exposure, making them an extra knowledge. In presenting this book, the author has
added advantage in practicing the theories discussed. The extensively capitalised his experience as a lecturer in lea-
author has used these practical applications to explain and ding international universities and as a board member of
solve the examples given in each chapter, thus providing renowned multinational companies.
greater support to the reader to easily understand the For those interested in gathering detailed knowledge
complex concepts. The web links and real life examples and technical theories in financial management, this book
are provided in the textbook to share more detailed is a promising piece of work which can be recommended
information with the readers to persuade them to think as a must read.
beyond the horizon of concepts explained in each chapter.
The complex concepts are provided with meaningful Miyuki Shehara Peiris
illustrations to offer better understanding to the readers Department of Finance
of the textbook. Most of the chapters include short case University of Sri Jayewardenepura
studies that help the readers to apply the knowledge gained Sri Lanka
into practice and thus familiarising the concepts to the E-mail: miyuki@sjp.ac.lk
readers. Even though the professional learning methods
encourage the followers to understand the theoretical N.J. Dewasiri
concepts, greater focus is placed on the application of the The Open University of Sri Lanka
learned theories into practice. Thus, this textbook is a Nawala, Nugegoda
gateway to the professional learning audience as well. Srilanka
Finally, the key concepts are listed and each chapter is E-mail: dnjay@ou.ac.lk
summarised to provide an opportunity to easily evoke the
concepts learned during the chapter. Many chapters are Y.K. Weerakoon Banda
updated in the 11th version where new concepts including Professor
consumption beta, three factor model and simulation Department of Finance
models in capital budgeting are added together with University of Sri Jayewardenepura
numerous case studies and actual illustrations from the Sri Lanka
practical world. E-mail: weerakon@sjp.ac.lk
Aligned with many other texts of this nature, Financial
Management provides a CD together with this book which David Longbottom and Alison Lawson (Eds.),
includes exceptional study support features positioning it Alternative Market Research Methods: Market Sensing.
as an impeccable work. The CD includes answers to the London and New York: Routledge, 2017, 312 pp.,
problems and review questions presented in this book, ISBN: 978-1138843721 (Paperback).
facilitating the development of answers by the users and DOI: 10.1177/2319510X20930874
enabling them to verify their answers. The PowerPoint
presentations of each chapter are provided to enrich the Qualitative market research has witnessed significant
teaching and learning process. The CD comprises several developments. During the nascent years of qualitative
excel problems to enable the users to practice excel research, advocates of traditional or quantitative market
functions that are influential in the practical work research often looked askance at those espousing the
environment. The data of several companies are presented qualitative research approach. Those quantitative market
together with a comprehensive list of finance-related researchers as per their methodological orientation were in
website links to enhance access to reliable information, the view that the marketplace can be understood only by
thus encouraging the users to apply the learned theories means of objective data. Therefore, the social reality in the
into practice. marketplace is free and it is independent from the researcher
Financial Management written by I.M. Pandey is a as well as the customers and stakeholders in the market-
masterpiece for the readers, especially undergraduate and place. As with any challenger to this accepted positivist