- Uses seminal articles from the highly regarded Bank of America Journal of Applied Corporate Finance.
- Gives insight into the practical implications of recent theoretical advances in the field.
- Enhanced by new material, including two new sections on International Finance and International Corporate Governance.
- Highlights contributions of Nobel Laureate Merton Miller to the field of Finance.
Preface of the First Edition.
Part I: Financial Markets:.
1. The History of Finance: An Eyewitness Account: Merton Miller (University of Chicago).
2. The Theory of Stock Market Efficiency: Accomplishments and Limitations: Ray Ball (University of Rochester).
3. Market Myths: G. Bennett Stewart, III (Stern Stewart & Co.).
4. An Analysis of Trading Profits: How Trading Rooms Really Make Money: Alberic Braas and Charles Braver (Oliver, Wyman & Company).
Part II: The Corporate Investment Decision:.
5. Finance Theory and Financial Strategy: Stewart Myers (Massachusetts Institute of Technology).
6. In Defense of Beta: S.P. Kothari and Jay Shanken (University of Rochester).
7. The Liquidity Route to a Lower Cost of Capital: Yakov Amihud (New York University) and Haim Mendelsohn (Stanford University).
8. The Promise of Real Options: Aswath Damodoran (New York University).
9. Real Options: State of the Practice: Alexander Triantis (University of Maryland) and Adam Borison (Applied Decision Analysis/ PricewaterhouseCoopers).
Part III: The Financing Decision I: Capital Structure:.
10. The Modigliani-Miller Propositions After Thirty Years: Merton Miller (University of Chicago).
11. Still Searching for Optimal Capital Structure: Stewart Myers (Massachusetts Institute of Technology).
12. The Capital Structure Puzzle: Another Look at the Evidence: Michael Barclay and Clifford Smith (University of Rochester).
13. What Do We Know About Stock Repurchases?: Gustavo Grullon and David Ikenberry (Rice University).
14. Stern Stewart Roundtable on Capital Structure and Stock Repurchase: Panelists: Clifford Smith (University of Rochester); Erik Sirri (Babson College); Tim Opler (Credit Suisse First Boston); David Ikenberry (Rice University); Richard Thevenet (Pepsico); and Dennis Soter (Stern Stewart & Co.) Moderated by Donald Chew (Stern Stewart & Co.).
Part IV: The Financing Decision II: The Finance Vehicles:.
15. Raising Capital: Theory And Evidence: Clifford Smith (University of Rochester).
16. Financing Corporate Growth: Bradford Cornell (University of California, Los Angeles) and Alan Shapiro (University of Southern California).
17. Are Banks Still Special? New Evidence on Their Role in the Capital-Raising Process: Christopher James and David Smith (University of Florida).
18. Convertible Bonds: Matching Financial and Real Options: David Mayers (University of California at Riverside).
19. The Uses of Hybrid Debt in Managing Corporate Risk: Charles Smithson (Chase Manhattan Bank) and Donald H. Chew (Stern Stewart & Co.).
20. Using Project Finance to Fund Infrastructure Investments: Richard Brealey, Ian Cooper, and Michel Habib (London Business School).
Part V: Risk Management:.
21. Financial Innovation: Achievements and Prospects: Merton Miller (University of Chicago).
22. Managing Financial Risk: Clifford W. Smith, Jr. (University of Rochester), Charles W. Smithson (Continental Bank) and D. Sykes Wilford (Chase Manhattan Bank).
23. Rethinking Risk Management: Rene Stulz (Ohio State University).
24. Theory of Risk Capital in Financial Firms: Robert Merton and André Perold: (Harvard Business School).
25. Corporate Insurance Strategy: The Case of British Petroleum: Neil Doherty (University of Pennsylvania) and Clifford Smith (University of Rochester).
26. Value at Risk: Uses and Abuses: Christopher Culp (CP Risk Management LLC), Merton Miller (University of Chicago) and Andrea M. P. Neves (CP Risk Management LLC).
Part VI: International Finance:.
27. Financial Markets and Economic Growth: Merton Miller (University of Chicago).
28. Globalization, Corporate Finance, and the Cost of Capital: René Stulz (Ohio State University).
29. Globalization of Capital Markets and the Asian Financial Crisis: E. Han Kim (University of Michigan).
30. Incorporating Country Risk in the Valuation of Offshore Projects: Donald Lessard (Massachusetts Institute of Technology).
31. Yankee Bonds and Cross-Border Private Placements: An Update: Greg Johnson (Banc of America Securities LLC).
32. Financial Risk Management for Developing Countries: A Policy Overview: Donald Lessard (Massachusetts Institute of Technology).
Part VII: International Corporate Governance:.
33. Is American Corporate Governance Fatally Flawed?: Merton Miller (University of Chicago).
34. The Role of Corporate Governance in South Korean Economic Reform: Kenneth Scott (Stanford University).
35. Corporate Ownership and Control in the U.K., Germany, and France: Julian Franks (London Business School) and Colin Mayer (Oxford University).
36. Universal Banks Are Not the Answer to America’s Corporate Governance “Problem”: A Look at Germany, Japan, and the U.S.: Jonathan R. Macey (Cornell Law School) and Geoffrey Miller (New York University Law School).
37. Which Capitalism? Lessons From the East Asian Crisis: Raghuram Rajan and Luigi Zingales (University of Chicago).
38. Measuring the Effectiveness of Different Corporate Governance Systems: Toward a More Scientific Approach: Jonathan Macey (Cornell Law School).
39. Merton Miller’s Contribution To Modern Finance: René Stulz (Ohio State University).