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Book review: I.M. Pandey (Ed.), Financial Management, Eleventh Edition

Article  in  Asia-Pacific Journal of Management Research and Innovation · June 2020

DOI: 10.1177/2319510X20930887

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Book Reviews
I.M. Pandey (Ed.), Financial Management, Eleventh
Edition. India:Vikas Publishing House, 2015, 946 pp.,
ISBN: 978-8125937142 (Paperback).
In the emerging period of financial management, the scope
was circumscribed to financing of organisational activities
through numerous available sources and the same was the
focus of many textbooks where fund raising instruments
and institutions were heavily addressed. Later on, with
the recognition of the strategic importance of financial
decision-making and policies on the success of organisa-
tions, the emphasis on financial management theories and
practical applications was radically enhanced.
One of the foremost authors in contemporary financial
management is I.M. Pandey, who holds the position of
Director General at the Delhi School of Business and the
Vivekananda Institute of Professional Studies. He has pub-
lished books related to financial management in numerous
fields and his focus here is on ‘financial management’. The
first edition of this book published in 1978 was one of the
textbooks that covered a gigantic area breaking the status
quo of confining to financing decision in financial manage-
ment and properly linking theoretical foundation with their
practical applications. Ten new editions have built on this
initial foundation that addresses additions to the theory and
the emerging practical areas to provide a comprehensive
study text based on the analytical approach to corporate
finance decision-making. The practical implications of fina-
ncial decisions are systematically addressed with sound theo-
retical underpinnings on such decisions.
The primary goal of this book has remained the same
from its initial edition and it is to present a comprehensive
coverage of key concepts and theories in financial manage-
ment in a simple and easy-to-understand manner, so that
the content is interesting and it can be easily grasped by
readers and practically applied with a better understanding
about the logic behind the decisions. The organisational
structure of this book needs to be reviewed to evaluate the
level of achievement of the objective. This 946-page book
consists of eight sections under which several chapters are
presented, followed by the annexures placed under final
section. The sections are logically arranged in a readable
manner so as to maintain the flow among the chapters.
Section 1 of this book focuses on valuation and it
discusses the fundamental areas in financial management
Asia-Pacific Journal of Management
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16(2) 167–170, 2020
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including the nature of financial management, value and
return, valuation of bonds and shares, risk and return
together with an overview of capital market theory. The
strong cornerstone developed in the initial section assists
the readers in understanding the theories and concepts
regarding the financial management decisions and value
creation discussed in the later sections.
Section 2 that contains Chapters 8 through 13 of this
book discusses various concepts and theories in relation to
investment decisions that is one of the main decisions in
financial management: capital budgeting, cost of capital,
forecasting of cash flows for investment decisions, risk
analysis in capital budgeting and real options, investment
strategies and process. The basic concepts of investment
decisions are discussed initially and they are followed by
several complexities involved. The financing and dividend
decisions are presented in Section 3, where various policies
and theories on financial and operating leverage, capital
structure and dividends are extensively discussed together
with practical examples.
Section 4 elaborates on capital markets and different
sources of long-term financing: shares, debentures, term
loans, convertible debentures, warrants, asset-based financ-
ing and venture capital financing. The basic concepts are
discussed with special focus on the practical scenarios and
examples.
Section 5 focuses on financial and profit analyses with
special emphasis on financial statements, financial state-
ment analysis and financial planning and strategy. An over-
view about the financial statements is provided and it is
followed by a discussion of analysis of financial statements
with different types of ratios together with DuPont analy-
sis, comparative statement analysis, trend analysis, and
inter firm analysis.
Section 6 discusses the working capital management deci-
sion by emphasising on principles of working capital man-
agement, receivables management and factoring, inventory
management, cash management and financing of work-
ing capital. Corporate restructuring, merges and acquisitions,
derivatives for managing financial risk, international finan-
cial management, creating and enhancing shareholder value
and corporate governance are discussed in Section seven.
All the chapters consist of a formal structure designed to
provide a more meaningful understanding to the readers,
 168 Book Reviews
beginning systematically with simple concepts of a
particular chapter and followed by complex theories
built on the basic understanding to give a holistic represe-
ntation to the reader. The chapters are designed to ensure
the achievement of intended objectives provided at the
beginning of the chapter and the approach and design of
the theories of each chapter are remarkably presented
throughout the textbook. The spreadsheet applications that
provide analytical outcomes and high level of accurate
information for decision-making are embedded in the
chapters to provide a practical exposure, making them an
added advantage in practicing the theories discussed. The
author has used these practical applications to explain and
solve the examples given in each chapter, thus providing
greater support to the reader to easily understand the
complex concepts. The web links and real life examples
are provided in the textbook to share more detailed
information with the readers to persuade them to think
beyond the horizon of concepts explained in each chapter.
The complex concepts are provided with meaningful
illustrations to offer better understanding to the readers
of the textbook. Most of the chapters include short case
studies that help the readers to apply the knowledge gained
into practice and thus familiarising the concepts to the
readers. Even though the professional learning methods
encourage the followers to understand the theoretical
concepts, greater focus is placed on the application of the
learned theories into practice. Thus, this textbook is a
gateway to the professional learning audience as well.
Finally, the key concepts are listed and each chapter is
summarised to provide an opportunity to easily evoke the
concepts learned during the chapter. Many chapters are
updated in the 11th version where new concepts including
consumption beta, three factor model and simulation
models in capital budgeting are added together with
numerous case studies and actual illustrations from the
practical world.
Aligned with many other texts of this nature, Financial
Management provides a CD together with this book which
includes exceptional study support features positioning it
as an impeccable work. The CD includes answers to the
problems and review questions presented in this book,
facilitating the development of answers by the users and
enabling them to verify their answers. The PowerPoint
presentations of each chapter are provided to enrich the
teaching and learning process. The CD comprises several
excel problems to enable the users to practice excel
functions that are influential in the practical work
environment. The data of several companies are presented
together with a comprehensive list of finance-related
website links to enhance access to reliable information,
thus encouraging the users to apply the learned theories
into practice.
Financial Management written by I.M. Pandey is a
masterpiece for the readers, especially undergraduate and
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postgraduate students to systematically understand the key
concepts of financial management. The author uses many
real life examples and mini cases to offer a better oppor-
tunity to the readers to link the complex theories with its
practical applications. As mentioned earlier, additional
detailed information is provided as supportive reading
material to ensure the fulfilment of the learning outcomes
of the textbook. It methodically contributes a high level
of knowledge for the field of financial management and
rigorously aids the students and practitioners to gather
extra knowledge. In presenting this book, the author has
extensively capitalised his experience as a lecturer in lea-
ding international universities and as a board member of
renowned multinational companies.
For those interested in gathering detailed knowledge
and technical theories in financial management, this book
is a promising piece of work which can be recommended
as a must read.
Miyuki Shehara Peiris
Department of Finance
University of Sri Jayewardenepura
Sri Lanka
E-mail: miyuki@sjp.ac.lk
N.J. Dewasiri
The Open University of Sri Lanka
Nawala, Nugegoda
Srilanka
E-mail: dnjay@ou.ac.lk
Y.K. Weerakoon Banda
Professor
Department of Finance
University of Sri Jayewardenepura
Sri Lanka
E-mail: weerakon@sjp.ac.lk
David Longbottom and Alison Lawson (Eds.),
Alternative Market Research Methods: Market Sensing.
London and New York: Routledge, 2017, 312 pp.,
ISBN: 978-1138843721 (Paperback).
DOI: 10.1177/2319510X20930874
Qualitative market research has witnessed significant
developments. During the nascent years of qualitative
research, advocates of traditional or quantitative market
research often looked askance at those espousing the
qualitative research approach. Those quantitative market
researchers as per their methodological orientation were in
the view that the marketplace can be understood only by
means of objective data. Therefore, the social reality in the
marketplace is free and it is independent from the researcher
as well as the customers and stakeholders in the market-
place. As with any challenger to this accepted positivist