''Principles of Corporate Finance'' is a reference work on the corporate finance theory edited by

Richard Brealey __NOTOC__ Richard A. Brealey is a British economist and author. He is an emeritus professor at the London Business School and a Fellow of the British Academy. He co-authored ''Principles of Corporate Finance'' with Stewart C. Myers and Franklin ...

Stewart Myers Stewart Clay Myers is the Robert C. Merton Professor of Financial Economics at the MIT Sloan School of Management. He is notable for his work on capital structure and innovations in capital budgeting and valuation, and has had a "remarkable influ ...

, Franklin Allen, and

Alex Edmans Alex Edmans is professor of finance at London Business School and the current Mercers' School Memorial Professor of Business at Gresham College. Since 2017 he has been the Managing Editor of the Review of Finance, the leading academic finance ...

. The book is one of the leading texts that describes the theory and practice of

corporate finance Corporate finance is the area of finance that deals with the sources of funding, the capital structure of corporations, the actions that managers take to increase the value of the firm to the shareholders, and the tools and analysis used to all ...

. It was initially published in October 1980 and now is available in its 14th edition. ''Principles of Corporate Finance'' has earned loyalty both as a classroom tool and as a professional reference book.

Overview

The book covers a wide range of aspects relevant to corporate finance, illustrated by examples and case studies. The text starts with explaining basic finance concepts of value, risk, and other principles. Then the issues become more and more complex, from project analysis and

net present value The net present value (NPV) or net present worth (NPW) applies to a series of cash flows occurring at different times. The present value of a cash flow depends on the interval of time between now and the cash flow. It also depends on the discount ...

calculations, to debt policy and option valuation. Other discussed topics include

stakeholder theory The stakeholder theory is a theory of organizational management and business ethics that accounts for multiple constituencies impacted by business entities like employees, suppliers, local communities, creditors, and others. It addresses morals ...

corporate governance Corporate governance is defined, described or delineated in diverse ways, depending on the writer's purpose. Writers focused on a disciplinary interest or context (such as accounting, finance, law, or management) often adopt narrow definitions ...

mergers and acquisitions Mergers and acquisitions (M&A) are business transactions in which the ownership of companies, other business organizations, or their operating units are transferred to or consolidated with another company or business organization. As an aspec ...

principal–agent problem The principal–agent problem refers to the conflict in interests and priorities that arises when one person or entity (the "agent") takes actions on behalf of another person or entity (the " principal"). The problem worsens when there is a gre ...

s, credit risk, working capital management, etc. The book concludes with a discussion on the current limitations of corporate finance theory.

References

External links

Official website
{{corporate finance and investment banking 1980 non-fiction books Finance books 1980 in economics