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Financial Theories Financial Theory General Essay

This is not ture for utilities companies and other monopolistic firms where new equities are rare. For the "Current Examples" in our table, do we need to find specific company examples that exist today or have happened in the last 2-3 years? Or will it suffice to give a theoretical example of a measurement in a firm that fits the model.

For example, would this be OK.

Efficiency Theory Example

- Production returns based on shared, variable, and per unit costs divided by the total output of a factory in a given period of time.

Instructor Response: I am ok with any example which shows that you understand the theory / concept.

References

Chew, DH (Ed.). (2001). The new corporate finance: Where theory meets practice (3rd ed.). New York, McGraw-Hill Irwin.

Copeland, T. & Weston, J.F., (1988). Financial theory and corporate policy (3rd ed.). Reading, MA. Addison-Wesley Publishing Company.

Fabozzi, R., & Modigliani, F. (1996). Capital markets institutions and instruments (2nd ed.). New Jersey, Prentice Hall.

Fama, E. And K. French. (2001). Disappearing dividends: Changing firm characteristics or lower propensity to pay," Journal of Financial Economics, 60, 3-43

Keown, A., Scott, D., Martin, J., & Petty, J.W. (1994). Foundations of finance. New Jersey, Prentice Hall.

Mayo, H. (2003). Investments an introduction (7th ed.). Australia, Thomson-South-Western.

Palepu, K.G., & Healy, P.M. (2008). Business analysis and valuation (4th ed.). Mason, OH: South-Western

Ray, R. (2001, March 22). Economic Value Added: Theory, evidence, a missing link. Review of Business, 22(1/2), 66. Retrieved from Business Source Complete database.

Statman, M., Fisher, K., & Anginer, D.. (2008). Affect in a Behavioral Asset-Pricing Model. Financial Analysts Journal, 64(2), 20-29,1. Retrieved July 4, 2010, from ABI/INFORM Global. (Document ID: 1461834661).

Huberman, Gur., Wang, Zhenyu (2005). Arbitrage Pricing Theory. University of Columbia.

Beenstock, Michael; Kam-Fai Chan. (May 1986). Testing the Arbitrage Pricing Theory in the United Kingdom....

Oxford Bulletin of Economics & Statistics, Vol. 48 Issue 2, p121-141
Jensen, Michael; Meckling, William. (1976) Theory of the Firm: Managerial behavior, agency costs and ownership structure. Journal of financial economics. Vol 3(4). pp 305-360.

Poza, E.J., Hanlon, S., & Kishida, R. (2004). Does the family business interaction factor represent a resource or a cost? Family business review, 17(2), 99-118.

Fama, E.F. (1995). Random walks in stock market prices. Financial analysts journal, 51(1), 75-

79.

Ball, R. (2001). The theory of stock market efficiency: accomplishments and limitations. In D.

H. Chew (Ed.), The new corporate finance: where theory meets practice (pp. 20-33).

New York: McGraw-Hill Irwin.

Madden, Bartley. (1998). The CFROI Valuation Model. The Journal of Investing. Vol 7(1). pp31-44.

Madden, Bartley. (1999). CFROI Valuation: a total system approach to valuing the firm. Publisher: Butterworth-Heinemann.

Salmi, Timo; Ilkka, Virtanen (2001). Economic Value Added: A simulation analysis of the trendy, owner-oriented management tool. Acta Wasaensia No. 90, 33

Lin, Chen; Zhilin, Qiao. (2008). Empirical Study of Integrated EVA Performance Measurement in China. Canadian Social Science. 4(2).

Jagannathan, Ravi; Wang, Zhenyu. (1996). The Conditional CAPM and the Cross-Section of Expected Returns. The Journal of Finance. 51(1). pp3-53.

Rozeff, M.S., Kinney, W.R. (1976) .Capital market seasonality: The case of stock returns. Journal of Financial Economics 3, 379-402

Malkiel, Burton. (2003). The Efficient Market Hypothesis and its Critics. Princeton University Working Paper.

Schon, Dennis. (2007). The Relevance of Discounted Cash Flow and Economic Value Added for the Evaluation of Banks. Publisher: GRIN, Verlag.

Odean, T. (1998): Volume, Volatility, Price, and Profit When All Traders Are Above Average. The Journal of Finance, Vol. LIII, No. 6, 1887-1934.

Bhattacharya, Sudipto. (1988). Corporate Finance and the Legacy of Miller and Modigliani. The Journal of Economic Perspectives, Vol. 2(4), pp. 135-147.

Sources used in this document:
References

Chew, DH (Ed.). (2001). The new corporate finance: Where theory meets practice (3rd ed.). New York, McGraw-Hill Irwin.

Copeland, T. & Weston, J.F., (1988). Financial theory and corporate policy (3rd ed.). Reading, MA. Addison-Wesley Publishing Company.

Fabozzi, R., & Modigliani, F. (1996). Capital markets institutions and instruments (2nd ed.). New Jersey, Prentice Hall.

Fama, E. And K. French. (2001). Disappearing dividends: Changing firm characteristics or lower propensity to pay," Journal of Financial Economics, 60, 3-43
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