Executive Summaries

• Date: 01 April 2010
• DOI: http://doi.org/10.1111/j.1745-6622.2010.00270.x
• Published date: 01 April 2010

VOLUME 22 | NUMBER 2 | SPRING 2010

APPLIED CORPORATE FINANCE

Journal of

A MORGAN STANLEY PUBLICATION

In This Issue: Strategy and Valuation

The Role of Private Equity in Life Sciences

Presented by Ernst & Young

8Panelists: Dennis Purcell, Aisling Capital; Richard Ruback,

Harvard Business School; Dean Mihas, GTCR; Brian Edelman,

Eli Lilly & Co.; Doug Giordano, Pzer Inc.; Tim Opler, Torreya

Partners; Tom Cahill, Morgan Stanley; and Glen Giovannetti,

Ernst & Young. Moderated by Jeff Greene, Ernst & Young.

It Ain’t Broke: The Past, Present, and

Future of Venture Capital

36 Steven N. Kaplan, University of Chicago Booth

School of Business and NBER, and

Josh Lerner, Harvard Business School and NBER

Postmodern Corporate Finance 48 Gregory V. Milano, Fortuna Advisors LLC

Implementing Fischer Black’s Simple Discounting Rule 60 Claudio Loderer, University of Bern, John B. Long, Jr.,

University of Rochester, and Lukas Roth, University of Alberta

Infrastructure Public-Private Partnerships Re-Dened:

An Increased Emphasis on “Partnerships”

69 James Runde, J. Perry Offutt, Stacie D. Selinger and

Jennifer Sarah Bolton, Morgan Stanley

Smart Growth—Creating Real Long-term Value 74 Edward D. Hess, Darden Graduate School of Business,

University of Virginia

Surge in the Urge to Merge: M&A Trends and Analysis 83 Michael J. Mauboussin, Legg Mason Capital Management

How an IPO Helps in M&A 94 Ugur Celikyurt, Koç University, Merih Sevilir, Indiana

University, and Anil Shivdasani, University of North Carolina

Valuation in Emerging Markets: A Simulation Approach 100 Javier García-Sánchez, Lorenzo Preve, and Virginia Sarria-

Allende, IAE Business School – Universidad Austral

Six Factors That Explain Executive Pay (and its Problems) 109 Stephen F. O’Byrne, Shareholder Value Advisors Inc.

and S. David Young, INSEAD

The RPF Model for Calculating the Equity Market Risk Premium and

Explaining the Value of the S&P with Two Variables

118 Stephen D. Hassett, Hassett Advisors