For updates of the lecture materials visit my folder on the L-Drive
Review questions for section 6 Liquidity and Risk Management can be found here
The guideline answer for section 6 can be found here
Additional reading and sources mentioned in the lectures
The main textbook for the course is Tirole, Jean, The Theory of Corporate Finance, Princeton University Press 2006. Other sources used in the lecture are
Lecture 1: Corporate Governance and Corporate Finance
Berk, Jonathan and Peter DeMarzo, Corporate Finance, 3rd ed., Pearson 2014, chpt 16.
Jensen, M., Murphy, K., Performance Pay and Top Management Incentives, Journal of Political Economy 98, 1990: 225-264.
Hall, B., Liebman, J., Are CEOs Really Paid Like Bureaucrats? Quarterly Journal of Economics 113, 1998: 653-691.
Gabaix, X., Landier, A., Why Has CEO Pay Increased So Much? The Quarterly Journal of Economics 123, 2008:: 49-100.
Downloadable at Free LINK
Lecture 2: Modigliani-Miller and the Financial Structure Puzzle
Admati, Anat, and Martin Hellwig, The Bankers' New
Clothes: What's Wrong with Banking and What to Do about It, Princeton NJ:
Princeton University Press, 2013.
Book chapters On a (slightly outdated) comparison of the cost of capital under different national tax systems see:
Mesere, K., De Kaan, F., Heady, C., Tax Policy. Theory and Practice in OECD Countries, Oxford UP 2003, chapter 8 (The Corporate Income Tax)
Baker, Malcom and Jeffrey Wurgler, Do Stricter Capital Requirements Raise the
Cost of Capital? Bank Regulation, Capital Structure, and the Low-Risk Anomaly, American Economic Review 105, 2015: 315-320.
Modigliani , Franco and Merton H. Miller, The Cost of Capital, Corporation Finance and the Theory of Investment, The American
Economic Review 48, 1958: 261-297.
Lecture 3: Basic Concepts of Finance and Contract Theory
Book chapters On contract theory:
Douma, Sytse and Hein Schreuder, Economic Approaches to Organizations, 5th ed., Harlow, UK: Pearson Education, 2013, chapter 7.
Macho-Stadler, Ines and David Peres-Castrillo, An Introduction to the Economics
of Information: Incentives and Contracts, Oxford and New York: Oxford University Press, 2001, chpapter 3.
Berk, Jonathan and Peter DeMarzo, Corporate Finance, 3rd ed., Pearson 2014, selected chapters.