From the Inside Flap
“Using a single elementary model Tirole brings out with refreshing ease an unsuspected unity and simplicity in a field that might otherwise be perceived as dishearteningly fragmented and complex. This masterful book will be a formidable teaching tool at the graduate level and an essential reference for research in corporate finance.”–Marco Pagano, Professor of Economics, University of Naples Federico II
“The field of corporate finance has developed rapidly and extensively in the last twenty years, but those who want to teach it face a barrier: the absence of a widely accepted textbook. Jean Tirole’s book fills that gap. Applying his celebrated analytical and expositional skills, Tirole synthesizes and unifies the field in a clear and accessible manner, emphasizing particularly the connections between corporate finance and contract theory and the role of incentives and control in firms’ financial decisions. The result is a book that will be an important resource for students and teachers alike.”–Oliver Hart, Andrew E. Furer Professor of Economics, Harvard University
“With this book, Tirole has provided a comprehensive treatment of modern corporate finance theory in one place with one integrated framework. As a bonus, he also describes many of the important empirical results in corporate finance and how they relate to the theories. The book will be a valuable asset to students (and professors) of corporate finance.”–Steve Kaplan, Neubauer Family Professor of Entrepreneurship and Finance, University of Chicago Graduate School of Business
“This is a remarkable book. Theoretical work in corporate finance over the past thirty or so years has yielded a bewildering array of individual models, yet Tirole manages to give a beautifully clear and unified treatment of the field. There is a real coherence both within and across the chapters, and one is in many places able to see the close connection between topics that are ordinarily treated as being distinct. The book will no doubt be the standard reference for researchers and students in corporate finance for many years to come.”–Jeremy C. Stein, Harvard University
“Jean Tirole, one of the preeminent economists of his generation, has put together the first integrated treatise of modern corporate finance theory. He succeeds in unifying the dispersed theories on financial and ownership structure, building on his excellence in information economics and contract theory. The book should be required reading for any Ph.D. course in corporate finance.”–Arnoud W. A. Boot, University of Amsterdam and Centre for Economic Policy Research
“The Theory of Corporate Finance is a towering achievement. Jean Tirole’s vision is exhaustive, systematic and original. The major findings of the last two decades are recast in a unified framework, describing the multiple levels of contracting relationships created by firms’ financial decisions. The book offers a significant number of new insights and it will have a profound impact on our understanding of corporate finance.”–Antoine Faure-Grimaud, Professor of Finance, London School of Economics
From the Back Cover
“Using a single elementary model Tirole brings out with refreshing ease an unsuspected unity and simplicity in a field that might otherwise be perceived as dishearteningly fragmented and complex. This masterful book will be a formidable teaching tool at the graduate level and an essential reference for research in corporate finance.”–Marco Pagano, Professor of Economics, University of Naples Federico II
“The field of corporate finance has developed rapidly and extensively in the last twenty years, but those who want to teach it face a barrier: the absence of a widely accepted textbook. Jean Tirole’s book fills that gap. Applying his celebrated analytical and expositional skills, Tirole synthesizes and unifies the field in a clear and accessible manner, emphasizing particularly the connections between corporate finance and contract theory and the role of incentives and control in firms’ financial decisions. The result is a book that will be an important resource for students and teachers alike.”–Oliver Hart, Andrew E. Furer Professor of Economics, Harvard University
“With this book, Tirole has provided a comprehensive treatment of modern corporate finance theory in one place with one integrated framework. As a bonus, he also describes many of the important empirical results in corporate finance and how they relate to the theories. The book will be a valuable asset to students (and professors) of corporate finance.”–Steve Kaplan, Neubauer Family Professor of Entrepreneurship and Finance, University of Chicago Graduate School of Business
“This is a remarkable book. Theoretical work in corporate finance over the past thirty or so years has yielded a bewildering array of individual models, yet Tirole manages to give a beautifully clear and unified treatment of the field. There is a real coherence both within and across the chapters, and one is in many places able to see the close connection between topics that are ordinarily treated as being distinct. The book will no doubt be the standard reference for researchers and students in corporate finance for many years to come.”–Jeremy C. Stein, Harvard University
“Jean Tirole, one of the preeminent economists of his generation, has put together the first integrated treatise of modern corporate finance theory. He succeeds in unifying the dispersed theories on financial and ownership structure, building on his excellence in information economics and contract theory. The book should be required reading for any Ph.D. course in corporate finance.”–Arnoud W. A. Boot, University of Amsterdam and Centre for Economic Policy Research
“The Theory of Corporate Finance is a towering achievement. Jean Tirole’s vision is exhaustive, systematic and original. The major findings of the last two decades are recast in a unified framework, describing the multiple levels of contracting relationships created by firms’ financial decisions. The book offers a significant number of new insights and it will have a profound impact on our understanding of corporate finance.”–Antoine Faure-Grimaud, Professor of Finance, London School of Economics
About the Author
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).
Excerpt. © Reprinted by permission. All rights reserved.
The Theory of Corporate Finance
By Jean Tirole
Princeton University Press
Copyright © 1996 Princeton University Press
All right reserved.
ISBN: 978-0-691-12556-5
Chapter One
Contents with Links to Sample Chapters in PDF (in Orange)
Frontmatter Acknowledgements Introduction Overview of the Field and Coverage of the Book Approach Prerequisites and Further Reading Some Important Omissions References
I. An Economic Overview of Corporate Institutions 1. Corporate Governance 2. Corporate Financing: Some Stylized Facts
II. Corporate Financing and Agency Costs 3. Outside Financing Capacity 4. Some Determinants of Borrowing Capacity 5. Liquidity and Risk Management, Free Cash Flow, and Long-Term Finance 6. Corporate Financing under Asymmetric Information 7. Topics: Product Markets and Earnings Manipulations
III. Exit and Voice: Passive and Active Monitoring 8. Investors of Passage: Entry, Exit, and Speculation 9. Lending Relationships and Investor Activism
IV. Security Design: The Control Right View 10. Control Rights and Corporate Governance 11. Takeovers
V. Security Design: The Demand Side View 12. Consumer Liquidity Demand
VI. Macroeconomic Implications and the Political Economy of Corporate Finance 13. Credit Rationing and Economic Activity 14. Mergers and Acquisitions, and the Equilibrium Determination of Asset Values 15. Aggregate Liquidity Shortages and Liquidity Asset Pricing 16. Institutions, Public Policy, and the Political Economy of Finance
VII. Answers to Selected Exercises, and Review Problems (2MB Excerpt) Answers to Selected Exercises Review Problems Answers to Selected Review Problems
Index
(Continues…)
Excerpted from The Theory of Corporate Financeby Jean Tirole Copyright © 1996 by Princeton University Press. Excerpted by permission.
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
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