Financial Economics (Series of Economic Science Textbooks)

Author: Wang Jiang
Publisher:
Publish Date: 2006-07-01
Features: The purpose of this book is to introduce the basic content of financial economics to readers with a certain foundation in economics. Financial economics aims to analyze financial issues using general economic principles and methods. As an introduction to financial research, it primarily focuses on identifying the fundamental economic issues involved in finance, establishing a theoretical framework, basic concepts, and general principles for analyzing these issues, as well as applying relevant principles within this framework to develop simple theoretical models to solve these basic problems. The framework, concepts, and principles established here, such as time and risk, optimal resource allocation, risk endowment and measurement, and asset valuation, form the foundation for research in specific areas of finance, ranging from asset pricing, investment, risk management, and international finance to corporate finance, corporate governance, financial institutions, financial innovation, and financial regulation and public finance. As for the specific models and their results, they should only be regarded as examples of applying the general framework and principles. For this reason, the book will start with basic issues, concepts, and principles, simplifying the framework establishment and theoretical analysis as much as possible, in order to grasp the essence of the problems, reveal their key economic mechanisms, and demonstrate general analytical methods.