Corporate Finance Theory: Introduction to Special Issue

The present article undertakes a critical review of the new book of Jean Tirole, the winner of the 2014 Nobel Prize in Economics, “The theory of cor- porate finance”, which has recently been published in Russian. The book makes a real contribution to the profession by summarizing the whole field of corporate finance and bringing together a big body of research developed over the last thirty years. By simplifying modeling, using unified analytical apparatus, undertaking reinterpretation of many previously received results, and structuring the material in original way Tirole achieves a necessary unity and simplicity in exposition of extremely heterogeneous theoretical and empirical material. The book integrates the new institutional economic theory into classical corporate finance theory and by doing so contributes to making a new type of textbook, which is quite on time and is likely to become essential reading for all graduate students in corporate finance and microeconomics and for everyone interested in these disciplines.

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Call for Papers Journal of Corporate Finance Special Issue on Corporate Governance

Review of Financial Economics ◽

10.1016/s1058-3300(04)00014-x ◽

2004 ◽

Vol 13 (3) ◽

pp. II

Keyword(s):

Corporate Governance ◽

Corporate Finance ◽

Special Issue

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The Macroeconomics of Corporate Debt

The Review of Corporate Finance Studies ◽

10.1093/rcfs/cfaa015 ◽

2020 ◽

Vol 9 (3) ◽

pp. 656-665 ◽

Cited By ~ 3

Author(s):

Markus Brunnermeier ◽

Arvind Krishnamurthy

Keyword(s):

Corporate Finance ◽

Empirical Work ◽

Household Finance ◽

Important Research ◽

Special Issue ◽

Corporate Financing ◽

Editorial Decision ◽

The 2008 Financial Crisis ◽

New Research ◽

Macroeconomic Implications

Abstract The 2020 COVID-19 crisis can spur research on firms’ corporate finance decisions and their macroeconomic implications, similar to the wave of important research on banking and household finance triggered by the 2008 financial crisis. What are the relevant corporate finance mechanisms in this crisis? Modeling dynamics and timing considerations are likely important, as is integrating corporate financing considerations into modern quantifiable macroeconomics models. Recent empirical work, including articles in this special issue, on the drag from debt in the COVID-19 crisis provides a first glimpse into the new research agenda. (JEL E22, E44, G32, G33) Received July 23, 2020; editorial decision: July 23, 2020 by Editor Andrew Ellul

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