Variation on the Theme 'in Search of New Foundations for Corporate Finance and Corporate Governance'
Universite de Bourgogne - LEG/FARGO - 011201
57 Pages Posted: 17 Dec 2003
Date Written: July 2002
Our purpose is to explore an alternative way to give new foundations to the theory of corporate finance and governance. The definition we give of corporate finance considers capital-budgeting as central. The shortcomings of the contract theory of the firm result in proposing new foundations to corporate finance based on the knowledge-based theories of the firm. Lastly, we explore the consequences of these new foundations. It leads to give new explanations of the role of external equity financing, financial debt and especially of internal financing, and to re-examine the corporate governance and financial evaluation questions.
Note: The downloadable document is in French.
JEL Classification: G310, G320, G380
Suggested Citation: Suggested Citation