The Making of Modern Corporate Finance

A History of the Ideas and How They Help Build the Wealth of Nations
Erscheinungsjahr 2025
ISBN: 978-0-231-21110-9
Verlag: Columbia University Press

Buch, Englisch, 328 Seiten, Print PDF, Format (B × H): 165 mm x 239 mm, Gewicht: 690 g

Why did the “stagflation” of the 1970s—the improbable combination of high unemployment and runaway inflation—prove so painful and protracted? What explains the U.S. stock market’s remarkable forty-year run of 12 percent average annual returns since then? Why is Japan still mired in a decades-long recession—and the Chinese economy in a tailspin? And what accounts for the resilience of U.S. stock and labor markets in the wake of the COVID-19 pandemic and the Fed’s record interest rate hikes?

Donald H. Chew, Jr., argues that answers to these questions lie in the principles and methods of “modern corporate finance.” Ideas formulated and tested by finance scholars—notably, an efficient stock market in which prices reflect the long-run values of public companies and a “market for corporate control” that exerts continuous pressure on management—informed and spurred the investor-driven capitalism that has produced the world’s most productive and valuable companies. Drawing on his career-long relationships with leading academics and practitioners, Chew profiles key figures in the development of modern corporate finance while emphasizing their counterintuitive lessons for shareholders, companies, and countries. Corporate efficiency and value creation, he contends, are the fundamental source of the social wealth essential to addressing challenges such as poverty and climate change. Lively and provocative, this book makes corporate finance approachable—and even admirable—for readers interested in how the success and failure of companies affect their lives.

Autoren/Hrsg.

Chew, Donald

Fachgebiete

• Wirtschaftswissenschaften Wirtschaftswissenschaften Unternehmensgeschichte, Einzelne Branchen und Unternehmer
• Wirtschaftswissenschaften Volkswirtschaftslehre Volkswirtschaftslehre Allgemein Wirtschaftstheorie, Wirtschaftsphilosophie
• Wirtschaftswissenschaften Betriebswirtschaft Unternehmensfinanzen
• Wirtschaftswissenschaften Volkswirtschaftslehre Wirtschaftssysteme, Wirtschaftsstrukturen

Inhaltsverzeichnis

Prologue: The Magic of Finance Capitalism
Chapter 1. An Introduction to Corporate Finance: What is It, and Why Does It Matter?
Chapter 2. The Cautionary Tale of Japan, Inc.—and the Link between Corporate Finance and Social Wealth
Chapter 3. Merton Miller and the Chicago School Theory of Value
Chapter 4. Michael Jensen, William Meckling, and the Rochester School of Corporate Control
Chapter 5. Stewart Myers and the MIT School of Real Options and Capital Structure
Chapter 6. Clifford Smith, Rene Stulz, and the Theory and Practice of Corporate Risk Management
Chapter 7. Jensen Redux, Steve Kaplan, and the Accomplishments of U.S. Private Equity
Chapter 8. The Rise and Fall of Stern Stewart’s EVA Financial Management System
Chapter 9. The Perennially Vexing Problem of U.S. CEO Pay and Steve O’Byrne’s Quest for the Perfect Pay Plan
Chapter 10. Martin Fridson, the Extraordinary Success of the High-Yield Bond Market, and the Leveraging of Corporate America
Chapter 11. Carl Walter and Exposing the Brittle Façade of Chinese Corporate and Public Finance
Chapter 12. James Sweeney and Micro-based Attempts to Make Macro Relevant
Epilogue: Sustainable Financial Management (and the Promise and Pitfalls of ESG)

Über Autor(innen)

Donald H. Chew, Jr., has been the editor of the Journal of Applied Corporate Finance since its start in 1981 and was also a founding partner of the consulting firm Stern Stewart & Co. His best-known books are The Revolution in Corporate Finance (with Joel Stern, 1986) and The New Corporate Finance: Where Theory Meets Practice (2000).