CUC International, Inc. (A)

Krishna G. Palepu; Paul M. Healy

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Case | HBS Case Collection | February 1992 (Revised October 1996)

CUC International, Inc. (A)

by Krishna G. Palepu and Paul M. Healy

Abstract

The case series examines the role of financial reporting and corporate finance policies as vehicles for communication between managers and outside investors. This case describes management's concern that the company's stock is undervalued because analysts viewed the company's accounting as aggressive. Students are asked to advise CUC's management on ways to improve investor confidence.

Keywords: Financial Reporting; Stocks; Financial Management; Decisions; Economic Slowdown and Stagnation; Management Style; Management Practices and Processes; Business and Shareholder Relations; Value; Financial Services Industry;

Format: Print

15 pages

Educators Purchase

Citation:

Palepu, Krishna G., and Paul M. Healy. "CUC International, Inc. (A)." Harvard Business School Case 192-099, February 1992. (Revised October 1996.)

About the Authors

Krishna G. Palepu

Ross Graham Walker Professor of Business Administration

Accounting and Management

General Management

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Paul M. Healy

James R. Williston Professor of Business Administration
Senior Associate Dean for Faculty Development

Accounting and Management

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View Publications »

More from these Authors

Case | HBS Case Collection | November 2015 (Revised March 2018)

Air Products' Pursuit of Airgas (A)

Charles C.Y. Wang, Paul M. Healy, Penelope Rossano and Kyle Thomas

This case centers around the Air Products' hostile takeover attempt of Airgas in 2010. Air Products argued that its offer of a 38% premium is generous given Airgas' poor performance, which Air Products attributed to underperforming and entrenched managers at Airgas. On the other hand, Airgas' management argued that the company's recent struggles are cyclical and that Air Products' offer grossly undervalues Airgas' long-run potential. How might Airgas' management credibly communicate its conviction to shareholders? Should Airgas shareholders side with Air Products and accept a certain short term return, or should they side with Airgas' management and accept an uncertain but potentially higher long-term outcome? How should the Airgas board balance its responsibilities to short-term versus long-term shareholders?

Keywords: Acquisition; Business and Shareholder Relations; Industrial Products Industry; Energy Industry; Chemical Industry;

Citation:
Wang, Charles C.Y., Paul M. Healy, Penelope Rossano, and Kyle Thomas. "Air Products' Pursuit of Airgas (A)." Harvard Business School Case 116-024, November 2015. (Revised March 2018.) View Details

Cite View Details Educators Purchase Related
Supplement | HBS Case Collection | November 2015 (Revised March 2018)

Air Products' Pursuit of Airgas (B)

Charles C.Y. Wang, Paul M. Healy and Kyle Thomas

Citation:
Wang, Charles C.Y., Paul M. Healy, and Kyle Thomas. "Air Products' Pursuit of Airgas (B)." Harvard Business School Supplement 116-025, November 2015. (Revised March 2018.) View Details

Cite View Details Purchase Related
Supplement | HBS Case Collection | February 2018

Air Products' Pursuit of Airgas (C)

Charles C.Y. Wang, Paul M. Healy and Kyle Thomas

Citation:
Wang, Charles C.Y., Paul M. Healy, and Kyle Thomas. "Air Products' Pursuit of Airgas (C)." Harvard Business School Supplement 118-080, February 2018. View Details

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Faculty & Research

CUC International, Inc. (A)

Abstract

Citation:

About the Authors

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