Course Page for Theory of Corporate Finance(««)


Syllabus

For updates of the lecture materials visit my folder on the L-Drive


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

Book Chapters
Berk, Jonathan and Peter DeMarzo, Corporate Finance, 3rd ed., Pearson 2014, chpt 16.

Articles
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

Book
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On a (slightly outdated) comparison of the cost of capital under different national tax systems see: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)

Articles
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.

On Finance:
Berk, Jonathan and Peter DeMarzo, Corporate Finance, 3rd ed., Pearson 2014, selected chapters.

Bodie, Z., Merton, R.C., Cleefton, D.L., Financial Economics, 2nd ed., Pearson 2009, selected chapters.

Lecture 7: Corporate Finance under Adverse Selection

Book chapters
Berk, Jonathan and Peter DeMarzo, Corporate Finance, 3rd ed., Pearson 2014, chapter 23.

Other Sources
Seeking Alpha, Sibanye Rights Offering Explained, 19 May 2017. LINK

Lecture 8: Entry, Exit and Speculation

Hölmstrom, B., Moral Hazard and Observability, The Bell Journal of Economics 10, 1979: 74-91 Free LINK



Other Sources