Principles of Corporate Finance

The latest edition in the Principles of Corporate Finance series, the 14th edition continues its tradition of showing how theory applies to the practical problems and decisions faced by financial managers. By examining what financial managers do and why, the book aims to provide readers with a solid understanding of theory, enabling them to ask the right questions when circumstances change and new problems arise. It serves as both a reference and a guide to help make financial decisions rather than just study them.

This new edition welcomes Alex Edmans to the author team, whose global authority and expertise in corporate governance, responsible business, and behavioral finance have greatly enhanced the coverage of these topics. A new chapter is dedicated to balancing shareholder value with promoting the interests of all stakeholders, addressing the potential conflicts involved and outlining how a responsible business should operate.

Several changes have been made to the chapter structure, along with expanded discussions on issues that have gained importance since the previous edition, including behavioral finance and financial innovation driven by AI, big data, and cloud computing. The edition also takes on a more international focus, incorporating information and perspectives on major developing economies such as China and India, and examining how financing and governance systems differ worldwide.

The new edition retains and builds on the pedagogical features of previous editions, including new chapter content summaries, self-test questions at key points, and numerous "beyond the page" examples available online through links in the text.