Theoretical Foundations of Corporate Finance.

Theoretical Foundations of Corporate Finance.
Joao Amaro de Matos | 2001-12-01 00:00:00 | Princeton University Press | 320 | Economics
Corporate finance is the area of finance that studies the determinants of firms' values, including capital structure, financing, and investment decisions. Although there are several excellent texts in corporate finance, this is the first to focus on the theoretical foundations of the subject in a consistent and integrated way at the Ph.D. level. In addition to a textbook for advanced graduate students, it can also serve as a general reference to researchers and sophisticated practitioners.

The material presented is carefully selected with an eye to what is essential to understanding the underlying theory, ensuring that this text will remain useful for years to come. The book is divided into three parts. The first section presents the basic principles of valuation based on the absence of arbitrage, including a discussion of the determinants of the optimal capital structure based on the seminal results of Modigliani and Miller. The second section discusses the implications of agency problems and information asymmetries to capital structure, giving particular attention to payout policy and to debt contract design. The concluding portion presents different ways of restructuring capital, including going public, going private using stock repurchases or leveraged buyouts, and mergers and acquisitions. Each chapter includes exercises that vary in difficulty, with suggested solutions provided in an appendix.

This book will assuredly be the standard doctoral- and professional-level explication of corporate finance theory and its appropriate applications.
Reviews
This book is intended for doctoral students, and is one of the better books on the topic. Although admittedly there are only a few books in this category, the advance treatment of the relevant concepts (capital structure, dividend policy, etc.) are done with clarity. You would need a solid background in corporate finance before you are able to tackle this book. On the other hand, the mathematics is not too difficult.

Download this book!

Free Ebooks Download