The assumption from the static tradeoff theory herein is that firms with a greater risk of experiencing financial distress tend to borrow less than firms having lower financial distress risk. Foundations of financial economics markets work wealth foundations page 5 phone. In less than 300 pages of highly readable text, yvan lengwiler covers the basics of modern asset pricing theory. Foundations for financial economics chifu huang, jifu huang. Litzenberger, foundations for financial economics, north holland, 1988. On past and potential testability of the theory, journal of financial economics 4 1977 129176. Microfoundations of financial economics literature. Litzenberger for technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact. Foundations for financial economics hardcover january 1, 1988 by chifu huang author, robert h. Litzenberger, foundations for financial economics, prentice hall, englewood cliffs, 1988.
Chifu huang author of foundations for financial economics. Econ 4370 economics of health care, fin 3350 personal financial planning, fin 4320 investments, fin 4321 portfolio theory, mgt 3335 organizational behavior, mgt 4380 conflict resolution and negotiation, and mkt 3342 consumer behavior. Huang c and r h litzenberger 1988 foundations for school university of macau. Foundations for financial economics by chifu huang, 1988, northholland edition, in english. Foundations for financial economics edition 1 by chifu. Zhejiang university of finance and economics wikipedia. The university specializes in economic disciplines and provides education in science, law, and the humanities. Author of foundations for financial economics, on intertemporal preferences in continuous time, and information structure and equilibrium asset prices. Financial economic theory was founded on several major theoretical breakthroughs. See all 5 formats and editions hide other formats and editions. Foundations for financial economics by chifu huang, robert h. Adopted as textbook for 1st year phd students in most major programs. Rather than giving superficial coverage of a wide range of topics, the book concentrates on individuals consumption and portfolio decisions under uncertainty and their implications for the valuation of securities. Foundations for financial economics chifu huang sloan school of management massachusetts institute of technology rob.
This book came out of lecture notes the authors had used to teach the first course in financial markets at phd programs in economics and in finance at massachusetts institute of technology, stanford university, and university of pennsylvania. This is an ebook version of a book published in print form in 1988 by prentice hall, the of which has been returned back to the authors. Probably the most influential book in economics since wwii. Puzzles of finance six practical problems and their remarkable solutions by mark kritzman this small book is loaded with insights to make better financial decisions. During its first year, many students rented houses from nearby silk farms. It covers all the topics appropriate for an introductory ph.
Accounting as an indispensable guide to economic theory abstract the paper analyses the accounting relationships between the financial and the real economy. Litzenberger, foundations for financial economics, elsevier science publishing, new york, 1988. Pdf microfoundations of financial economics an introduction to. Wiley and american finance association are collaborating with jstor to digitize, preserve and extend access. The purpose of the book is to provide the foundations for the study of modern financial economics. Microfoundations of financial economics is a wonderful book.
Based on formal derivations of financial theory, this volume provides a rigorous. In 1987, the state education commission renamed it the zhejiang institute of finance and economics. The first part chapters 1 through 6 deals with two period models. Buy foundations for financial economics facsimile by huang, chifu isbn. Trading volume, past returns, and conditional skewness in stock prices pdf, journal of financial economics, vol. The university was founded in december 1974 as the zhejiang academy of public finance and banking. Corporate financing and banks in greater china guest editors. Federal reserve board comments on market tantrums and. Litzenberger oxford university press is a department of the university of oxford. Optimal debt and profitability in the tradeoff theory, nber working papers 21548, national bureau of economic research, inc. Everyday low prices and free delivery on eligible orders.
Chinas model of managing its financial system submitted. Since w is always zero, it cannot be used as an objective. A market portfolio plays an important role in many financial theories and models. After a decade of dithering, beijing has quietly embraced financial. Whited journal of financial economics this paper develops a model in the spirit of hennessy and whited 2005 in which the capital structure dynamics associated with transitory debt fully explain the longhorizon leverage paths documented by. Mm 1958, 1969 establish that the total value of the firm, in the absence of taxes, remains constant across all degrees of financial leverage. Wenge zhu shanghai university of finance and economics.
The role of bank credit in business financing in poland, working papers 201603, faculty of economic sciences, university of warsaw. Foundations for financial economics chifu huang, robert h. Corporate financing and banks in greater china sciencedirect. Ming huang, and tano santos, prospect theory and asset. Students in a communications component course are explicitly required to demonstrate knowledge of. Foundations for financial economics chifu huang, robert. Huang and litzenberger 1988 foundations of financial.
Journal of shanghai university of finance and economics. Kraus and litzenberger 1973 provide a statepreference model with. Chapter 1the five foundations of economics 19 terms. Frank milne finance theory and asset pricing, second edition oxford university press 2003. Information shocks and shortterm market underreaction. A statepreference model of optimal financial leverage. Pretend you are at the helm of an economics department. Journal of financial economics co x ingersoll and ross the relation bet w een f orw ard prices. If youve been taught this theory but still feel stuck in approaching applications or having a deeper understanding of the solutions, this book will help you get unstuck. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. The prerequisite of this course is financial economics i or familarity with huang and litzenberger, foundations for financial economics.
Zhejiang university of finance and economics abbreviated zufe. Microfoundations of financial economics an introduction to general equilibrium asset pricing. Litzenberger snippet view 1988 chifu huang, robert h. Thirty years from research and teaching to practice.
View huang and litzenberger 1988 foundations of financial economics ch. In this paper, we identify large discontinuous changes, known as jumps, in stock prices as a proxy for information shocks and examine shortterm market reactions. Foundations for financial economics pdf free download epdf. Other more advanced references that may be used in class or consulted on specific topics. Students of advanced finance will want to use this book as an effective learning tool and reference. Information economics a professors massimo massa and hong zhang 1. Perennially, sufe is inviting foreign professors from around the world to teach in shanghai for the sufe joint. Intr oduction to financial economics j spring jiang w ang course description this course pro vides an in tro duction to the theory of nancial economics it is in. When they try several values of w with respect to d, they claim to be able to find the optimal d that minimize w. Foundations for financial economics, by chifu huang, robert h. Huang c and r h litzenberger 1988 foundations for financial. Huang and litzenberger, foundations of financial economics.
He has made major contributions to the theory of financial economics, writing on dynamic general equilibrium theory, intertemporal utility theory, and the theory of individual consumption and portfolio decisions. The complete textbook, including some supporting material, is now available. Ekern, steinar and robert wilson, on the theory of the firm in an economy with incomplete markets, bell journal of economics and management science, spring 1974, 5 1, 171180. Financial distress forms an integral part of these leveragerelated costs. This project arose from our concern over the widespread view that openeconomy macroeconomics also. The school of financezhejiang university of finance.
Huang and litzenberger foundations for financial economics. Review and comments suppose x is the net income of a firm net of debt repayment, d the borrowing, and r the interest rate, the firm has the following profit, or earning e. Foundations for financial economics 1988 edition open. Economists can see how finance theory can be applied to economics, while finance specialists can appreciate the economic. Foundations for financial economics chifu huang, jifu huang, luweng huang, robert h. Huang c and r h litzenberger 1988 foundations for financial eco nomics from finance finc at university of macau. This paper will prove that they merely come to their original question. I am grateful to nellie liang for helpful conversations.
It will be shown that accounting can clarify the nature of economic phenomena and be an important building block for economic theory. Huang c and r h litzenberger 1988 foundations for financial eco nomics. Applied computational economics and finance by mario j. Whited journal of financial economics this paper develops a model in the spirit of hennessy and whited 2005 in which the capital structure dynamics associated with transitory debt fully explain the longhorizon leverage paths documented by lemmon, roberts, and zender 2008. Financial statement data, such as book equity, cash flows, longterm debt, and sales are obtained from the compustat tapes. Intr oduction to financial economics j spring jiang w ang course description this course pro vides an in tro duction to the theory of nancial economics. Several related strands of literature on law, institutions, finance, and economic growth have emerged in financial economics in recent years, and their impact on other areas of research has been significant. Foundations for financial economics by chifu huang. Much of what passes as common sense investment rules of thumb contain logical falacies. Shanghai university of finance and economics shanghai university of finance and economics sufe is a leading research university with a specialization in business studies, ideally located in the vibrant international city of shanghai.
Buy foundations for financial economics by huang, chifu, litzenberger, robert h. The prerequisite of this course is financial economics i or familarity with huang and litzenberger. Thus, one challenge in examining shortterm market reactions to information shocks is to disentangle the liquidity effect from the information effect in shortterm stock returns. Course objectives the purpose of this course is to familiarize the phd student with the most important theoretical and empirical research developments related to role of information for the functioning of financial markets. Financial economics provides a comprehensive introduction to an exciting new field of economics for advanced undergraduate and postgraduate economists and finance specialists. Foundations of economic analysis paul anthony samuelson. Econ chapter 9firms in a competitive market 5 terms.
Determinants of capital structure in nonfinancial companies, discussion papers in economics 21167, university of munich, department of economics. It develops the main arguments in finance theory from an explicitly economic perspective. The school of finance consists of departments of finance, financial engineering, investment, credit management, insurance, international finance, in addition to lishui research institute for rural financial reform, research center for wealth management and quantitative investment, and research center for international investment and financial management. While the sample period for financial data covers from 1969 to 1995, the test period or the sample period for stock returns covers from july 1973 to june 1996. We are unaware of any previous attempt to do this using modern analytical methods. Financial economics books asset pricing, computational. The views expressed here are my own and are not necessarily shared by other members of the federal reserve board and the federal open market committee. Foundations of financial economics introduction wealth foundations page 2 phone.
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