agency theory

A Book Review – “The Theory of Corporate Finance” by Jean Tirole

If you are a seasoned professional working in corporate finance or as investments analyst, it is very probable that you saw them all. This means that you saw the CFA (Chartered Financial Analyst) endorsed books, such as the US famous “Investments” by Bodie and Kane. You probably saw also the stock market analysts’ books – those written by the guys or girls who have been very successful as investor managers. You also probably saw the books written by various academics in the field of finance. So probably right now your head is spinning only at the invocation of all these names and handbooks.

If this is the case, you probably noticed that much of the information is repeated. You can find the same topic in various shapes and sizes coming to you and waiting to be served in various shapes and with changed examples. Take for example the dividend payout theory – we all know that a company should pay a dividend as long as the expected outcomes of the company’s actions are less than the cost of capital. Read More »A Book Review – “The Theory of Corporate Finance” by Jean Tirole