The Ownership of the Firm, Corporate Finance, and Derivatives Some Critical Thinking /

• Main Author: Chang, Kuo-Ping (Author)
• Corporate Author: SpringerLink (Online service)
• Format: Electronic eBook
• Language: English
• Published: Singapore : Springer Singapore : Imprint: Springer, 2015.
• Series: SpringerBriefs in Finance,
• Subjects: Finance.; Microeconomics.; Macroeconomics.; Finance, general.; Macroeconomics/Monetary Economics//Financial Economics.

This book clarifies several ambiguous arguments and claims in finance and the theory of the firm. It also serves as a bridge between derivatives, corporate finance and the theory of the firm. In addition to mathematical derivations and theories, the book also uses anecdotes and numerical examples to...

Table of Contents:

• Preface
• Chapter 1: The Ownership of the Firm
• 1.1: A Story of Robin Hood
• 1.2: Power, Entrepreneur, and Objectives of the Firm
• 1.3: Choice, Risk Attitude, and Types of Contract
• References
• Chapter 2: Maximizing Profits and Maximizing Resource Providers’ Wealth
• 2.1: The Coase Theorem and the Modigliani-Miller Propositions
• 2.2: A Simple Example of the Modigliani-Miller Second Proposition
• References
• Chapter 3: A Reconsideration of the Modigliani-Miller Propositions
• 3.1: A Tale of Two Cows-The Modigliani-Miller First Proposition
• 3.2: Some Fallacious Arguments for the Modigliani-Miller Second Proposition
• References
• Chapter 4: Derivatives and the Theory of the Firm
• 4.1: Model-Free Option Prices
• 4.2: The Firm’s Resources and Derivatives
• 4.2.1: Each Resource Is Both a European Call Option and a European Put Option
• 4.2.2: Each Resource Is a Stock Plus a Forward Contract
• References
• Chapter 5: Arbitrage and Valuation of Different Contracts
• 5.1: The Arbitrage Theorem
• 5.2: Properties of the Binomial Option Pricing Model
• 5.3: Valuing Different Contracts
• Appendix A: Incomplete Market
• Appendix B: Incomplete Market and Replication of Securities
• Appendix C: More Uncertain Project and the Firm’s Value
• References
• Chapter 6: Misinterpretations of Residual Claim in Finance and Corporate Law
• 6.1: De Jure versus De Facto
• 6.2: Agency Costs and Residual Claim
• 6.3: Moral Hazard and Residual Claim
• References
• Index.