The past twenty years have seen great theoretical and empirical advances in the field of corporate finance. Whereas once the subject addressed mainly the financing of corporations--equity, debt, and valuation--today it also embraces crucial issues of governance, liquidity, risk management, relationships between banks and corporations, and the macroeconomic impact of corporations. However, this progress has left in its wake a jumbled array of concepts and models that students are often hard put to make sense of. Here, one of the world's leading economists offers a lucid, unified, and comprehensive introduction to modern corporate finance theory. Jean Tirole builds his landmark book around a single model, using an incentive or contract theory approach. Filling a major gap in the field, The Theory of Corporate Finance is an indispensable resource for graduate and advanced undergraduate students as well as researchers of corporate finance, industrial organization, political economy, development, and macroeconomics.
Tirole conveys the organizing principles that structure the analysis of today's key management and public policy issues, such as the reform of corporate governance and auditing; the role of private equity, financial markets, and takeovers; the efficient determination of leverage, dividends, liquidity, and risk management; and the design of managerial incentive packages. He weaves empirical studies into the book's theoretical analysis. And he places the corporation in its broader environment, both microeconomic and macroeconomic, and examines the two-way interaction between the corporate environment and institutions. Setting a new milestone in the field, The Theory of Corporate Finance will be the authoritative text for years to come.
By:
Jean Tirole
Imprint: Princeton University Press
Country of Publication: United States
Dimensions:
Height: 254mm,
Width: 203mm,
Spine: 41mm
Weight: 1.701kg
ISBN: 9780691125565
ISBN 10: 0691125562
Pages: 656
Publication Date: 14 March 2006
Audience:
Professional and scholarly
,
College/higher education
,
Undergraduate
,
Primary
Format: Hardback
Publisher's Status: Active
CONTENTS:I. An Economic Overview of Corporate Institutions1. Corporate Governance2. Corporate Financing: Some Stylized FactsII. Corporate Financing and Agency Costs3. Outside Financing Capacity4. Some Determinants of Borrowing Capacity5. Liquidity and Risk Management, Free Cash Flow, and Long-Term Finance6. Corporate Financing under Asymmetric Information7. Topics: Product Markets and Earning ManipulationsIII. Exit and Voice: Passive and Active Monitoring8. Investors of Passage: Entry, Exit, and Speculation9. Lending Relationships and Investor ActivismIV. Security Design: The Control Right View10. Control Rights and Corporate Governance11. TakeoversV. Security Design:: The Demand Side View12. Consumer Liquidity DemandVI. Macroeconomic Implications and the Political Economy of Corporate Finance13. Credit Rationing and Economic Activity14. Mergers and Acquisitions and the Equilibrium Determination of Asset Values15. Aggregate Liquidity Shortages and Liquidity Asset Pricing16. Institutions, Public Policy, and the Political Economy of FinanceVII. Answers to Selected Exercises
Jean Tirole, the winner of the 2014 Nobel Prize in Economics, is honorary chairman of the Foundation Jean-Jacques Laffont at the Toulouse School of Economics and of the Institute for Advanced Study in Toulouse, and annual visiting professor of economics at the Massachusetts Institute of Technology. His books include Economics for the Common Good and Financial Crises, Liquidity, and the International Monetary System (both Princeton).
Reviews for The Theory of Corporate Finance
A magnificent new book... This is far more than the mere textbook it purports to be; it has a plausible claim to be the first truly comprehensive overview of corporate finance by an economist. -- The Economist Impeccably systematized... Tirole's book will have a prominent place in my library, and I am sure that I shall have plenty of occasions to refer to its authority in the future. It fully deserves a 'buy' rating. -- Rudi Bogni, Times Higher Education Supplement Jean Tirole has provided the profession with its first comprehensive, advanced treatment of corporate finance theory... [T]he overall result is far from idiosyncratic and it will have a major impact upon teaching and research in corporate finance. -- David Webb, Economic Journal
- Commended for Association of American Publishers Award for Best Professional/Scholarly Book in Finance & Economics 2006 (United States)
- Commended for Association of American Publishers/Professional and Scholarly Publishing Awards: Economics 2006
- Commended for Association of American Publishers/Professional and Scholarly Publishing Awards: Economics 2006.
- Winner of Nobel Prize in Economics 2014
