Summary John R Gram wrote the evidence from the field published in 2001 examines the cost of capital, capital budgeting and capital structure, and describes the current practice of corporate finance. Big companies rely on the net present value (NPV) techniques which is used to analyze the profitability of a projected investment. Instead, small companies tending to use the payback period (PB) which is the … Continue reading The theory and practice of corporate finance: evidence from the field

Summary Rafael La Porta and Robert W. Vishny wrote Law and Finance in 1998 illustrates the legal rules to protect corporate or majority shareholders and creditors, and stealing from minority shareholders by taking advantage of using international laws. Rafael contributed that developed countries normally protected as shareholder, and developing countries are easy to be stolen from developed countries. The reason is because the international law … Continue reading Law and Finance