Corporate Finance

Author: Liu Shu-lian
Publisher:
Publish Date: 2005-03-01
Features: This book represents a new attempt in writing, aiming to combine theory and practice to provide future financial experts with a new, simple, and practical approach to financial management. Focusing on corporate finance as the core, with risk and return as the main thread, the book systematically introduces the fundamental theories and practical techniques of corporate finance. During the writing process, the author strives to adhere to the following principles:
Systematic Principle. The book is divided into five parts, totaling fifteen chapters. The first part serves as the foundation of the book, guided by the objectives of corporate finance and grounded in financial statement analysis, systematically introducing theories of risk and return and security valuation models. The second to fourth parts constitute the main body of the book, organized based on the structure of the balance sheet, successively covering capital budgeting, long-term financing decisions, and working capital management. The fifth part is a special section, exploring topics such as corporate mergers and restructurings, options theory and corporate finance, derivative risk management, and international corporate finance.
Practical Principle. The book begins with fundamental theories and uses financial management techniques as tools to guide readers in analyzing successes and failures, as well as lessons learned in corporate finance. Each chapter includes case studies, accompanied by thought-provoking questions and role-playing simulations, encouraging readers to think deeply from the perspective of the stakeholders. The book strives to align "theory—method—case" to enable readers to apply knowledge in practice and draw insights.
Innovative Principle. The book seeks to break away from traditional models and writing methods in financial management textbooks, combining the pursuit of "reality," "innovation," and "depth." Based on extensive review of domestic and international literature, the book analyzes and researches from a fresh perspective, integrating modern financial management models with China's practical realities to provide readers with a new direction in financial management. The chapter order can serve as a general teaching sequence for this course, but it may be adjusted according to teaching needs or modified with additions or deletions as necessary. Appendices at the end of each chapter can guide readers into deeper discussions of certain topics. Omitting these sections does not affect subsequent learning.
In this book, it is assumed that readers have studied economics, management, accounting, probability theory, and statistics. These prerequisite courses will help deepen their understanding of the book's content. However, prior knowledge is not essential, and the book provides necessary introductory explanations of relevant concepts from these courses for ease of learning. Many of the book's contents have been used as teaching materials in higher education institutions and have been continuously revised and supplemented during use. This edition can serve as a textbook for graduate students in business administration (MBA), accounting (MPAce), or as a senior undergraduate textbook for majors in financial management, accounting, or finance. It can also be used as a reference for researchers and educators in related fields, as well as for practitioners in financial management seeking inspiration and enlightenment.