In Search of New Foundations

In this paper I argue that corporate finance theory, empirical research, practical applications, and policy recommendations are deeply rooted in an underlying theory of the firm. I also argue that although the existing theories have delivered very important and useful insights, they seem to be quite...

Full description

Saved in:
Bibliographic Details
Published in:The Journal of finance (New York) 2000-08, Vol.55 (4), p.1623-1653
Main Author: Zingales, Luigi
Format: Article
Language:English
Subjects:
Business structures
Capital structure
Corporate finance
Corporate governance
Corporations
Finance
Financial investments
Human capital
Organization theory
Shareholders
Studies
Valuation
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:In this paper I argue that corporate finance theory, empirical research, practical applications, and policy recommendations are deeply rooted in an underlying theory of the firm. I also argue that although the existing theories have delivered very important and useful insights, they seem to be quite ineffective in helping us cope with the new type of firms that is emerging. I outline the characteristics that a new theory of the firm should satisfy and how such a theory could change the way we do corporate finance, both theoretically and empirically.
ISSN:0022-1082
1540-6261
DOI:10.1111/0022-1082.00262