The New Corporate Finance (Paperback)

~ Donald Chew (Author) "Most financial economists believe that the primary aim of corporate management is (or, at least, should be) to maximize shareholder value (or, more precisely, "the..." (more)
Key Phrases: total wealth leverage, total compensation strategy, deferred interest securities, New York, Wall Street, Merrill Lynch (more...)

Editorial Reviews

Product Description

This book is comprised of 45 articles written by top researchers and theorists in finance. The text is meant to bridge the gap between financial theory and practice. It gives instructors a way to introduce students to academic articles edited to eliminate the methodological content. The articles were originally edited for practitioners, so they are perfect for the MBA student. This reader is the perfect packaging option for any of our Corporate Finance texts.

Product Details

• Paperback: 672 pages
• Publisher: McGraw-Hill/Irwin; 3 edition (August 24, 2000)
• Language: English
• ISBN-10: 007233973X
• ISBN-13: 978-0072339734
• Product Dimensions: 9 x 7.3 x 1.1 inches
• Shipping Weight: 1.9 pounds (View shipping rates and policies)
• Average Customer Review: 4.3 out of 5 stars  See all reviews (7 customer reviews)
• Amazon.com Sales Rank: #344,199 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

9 of 9 people found the following review helpful:

4.0 out of 5 stars A good reference for motivated MBAs and practitioners, May 14, 2000

By	G. Shiau "grumpychicagoguy" (Chicago, IL USA) - See all my reviews (REAL NAME)

This review is from: The New Corporate Finance (Paperback)

As the title of the book clearly indicates, the text advances corporate finance beyond the theory presented in texts like Brealy and Myers. Thus, the text is geared towards a more sophisticated reading audience. In a collection of articles, academics and finance practitioners discuss the real world impact of capital budgeting, dividend/share repurchase policy, financial innovations (e.g. convertibles, commodity-linked bonds, derivatives, etc.), and bankruptcy on firms. Do not be scared off by the "academic" nature of this text. Unlike academic journals, the long-winded discussions on hypothesis testing and experimentation are abandoned (along with the high-level mathematics). The articles are very readable and any empirical evidence is presented in relatively friendly charts and graphs, which do a great job at providing the proper intuition. More importantly, the authors usually include real world anecdotal evidence to support the conclusions, as well.

7 of 8 people found the following review helpful:

4.0 out of 5 stars Extremely useful and well written, if somewhat partisan work, September 24, 1999

By	[e-mail] "hayuanmu" (London) - See all my reviews

This review is from: The New Corporate Finance (Paperback)

This collection of articles from the Journal of Applied Corporate Finance is extremely well-presented and eschews a lot of the overly technical analyses and explanations that poulate other works. The concept of Economic Value Added or EVA is explained in quite practical terms as are the main corporate finance principals to which most readers will have been exposed through other texts.

What is extremely useful is that the editors have brought in some top managers to discuss the implementation of EVA and EVA-related systems. While these have generally been success stories, it it these outsiders who address the limitations of the system, effectively strengthening its application.

The Stern-Stewart team has the zeal of evangelists and while this approach may be off-putting to those who like their corporate finance rarefied and dry, it does hammer the main points home.

The academics, including Michael Jensen, Stewart Myers, Fischer Black and one of the godfathers of modern corporate finance, Noble laureate Merton Miller, present overviews and long term evaluation of their own work in terms understandable to most laymen. While not presenting any original work, as a collection this is definitely a worthwhile addition to any corporate finance student or practitioner.

Any corporate manager interested in a system that reconciles incentives and rewards should also give this book a read.

4 of 4 people found the following review helpful:

5.0 out of 5 stars Review from MBA / GE student, July 22, 2005

By	J. Guentert - See all my reviews (REAL NAME)

This book is excellent reading. Foremost, it discusses clearly all of the major issues today in corporate finance - capital structure, "what investors want", incentives and performance measurement via Accounting versus Economic Value Added models, corporate architecture, etc. The author is extremely engaging, and I must admit, this is the first "text book" I've had that I wanted to keep reading. The author is sarcastic, opinionated, but objective all in one. An excellent purchase for a course or just if you're interested in understanding the way markets and corporate finance truly function.