Structuring Corporate Financial Policy: Diagnosis of Problems and Evaluation of Strategies

15 Pages Posted: 21 Oct 2008 Last revised: 27 Nov 2018

See all articles by Robert F. Bruner

Robert F. Bruner

University of Virginia - Darden School of Business

Katherine Updike

affiliation not provided to SSRN

Sean Carr

University of Virginia - Darden School of Business

Multiple version iconThere are 2 versions of this paper

Abstract

This technical note presents an overview of the process by which an analyst could proceed to assess the financial policy of a firm. The note defines several dimensions of financial policy, offers three benchmarks against which to evaluate the policy, and reviews the FRICT framework with which to assess proposals for future financial policy.

Excerpt

UVA-F-1054

Rev. Oct. 31, 2018

Structuring Corporate Financial Policy:

Diagnosis of Problems and Evaluation of Strategies

This note outlines a diagnostic and prescriptive way of thinking about corporate financial policy. Successful diagnosis and prescription depend heavily on thoughtful creativity and careful judgment, so the note presents no cookie-cutter solutions. Rather, it discusses the elements of good process and offers three basic stages in that process:

Description: The ability to describe a firm's financial policies (which have been chosen either explicitly or by default) is an essential foundation of diagnosis and prescription. Part I of this note defines “financial structure” and discusses the design elements by which a senior financial officer must make choices. This section illustrates the complexity of a firm's financial policies.

. . .

Keywords: corporate financial policy, financial analysis, capital structure, strategic planning

Suggested Citation

Bruner, Robert F. and Updike, Katherine and Carr, Sean, Structuring Corporate Financial Policy: Diagnosis of Problems and Evaluation of Strategies. Darden Case No. UVA-F-1054. Available at SSRN: https://ssrn.com/abstract=1278871

Robert F. Bruner (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-3823 (Phone)
434-924-0714 (Fax)

HOME PAGE: http://faculty.darden.edu/brunerb/

Katherine Updike

affiliation not provided to SSRN

No Address Available

Sean Carr

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-4812 (Phone)

HOME PAGE: http://www.batteninstitute.org

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