Table Of ContentANNOTATED BIBLIOGRAPHY OF CORPORATE FINANCE
ANNOTATED
BIBLIOGRAPHY OF
CORPORATE FINANCE
Compiled by
Roger and Eva Lister
© Roger and Eva Lister 1979
Softcover reprint of the hardcover 15t edition 1979 978-0-333-18399-1
All rights reserved. No part of this publication may be
reproduced or transmitted, in any form or by any means,
without permission.
First published 1979 by
THE MACMILLAN PRESS LTD
London and Basingstoke
Associated companies in Delhi
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Melbourne New York Singapore and Tokyo
British Library Cataloguing in Publication Data
Lister, Roger Jeffrey
Annotated bibliography of corporate finance. -
(Bibliographies in financial management).
1. Corporations - Finance - Bibliography
I. Title II. Lister, Eva III. Series
016.6581'5 27164.F5
ISBN 978-1-349-02628-9 ISBN 978-1-349-02626-5 (eBook)
DOI 10.1007/978-1-349-02626-5
This book is sold subject to the standard conditions of
the Net Book Agreement.
CONTENTS
Preface Vll
Acknowledgments IX
Introduction
List of Periodicals Consulted 5
Classification Scheme 9
Bibliography 11
Author Index 179
Subject Index 237
PREFACE
This classified, annotated bibliography is concerned with the theory and practice of
corporate finance. The compilers have set out to include all published works in the
English language of lasting interest that are directly relevant to the corporate
financing decision.
As a field of study, corporate finance is experiencing an increasingly unitary
development at the theoretical level and, to a significant degree also at the practical
level. Traditionally isolated areas are now being studied in terms of their unity and
interdependence. The restrictive assumptions which beset earlier contributions are
being gradually dispensed with. The subject is increasingly studied in the context of
its source and related disciplines.
At the practical level, growing theoretical unity has combined with growing
technical virtuosity to produce more integrated and comprehensive planning
models and positive studies of actual behaviour. For the researcher and the teacher,
as well as for the manager, the growing body of normative analyses, positive studies
and financial planning models offers a source of valuable instruction and interest.
This bibliography was prompted by the conviction that justice could only be done
to the developing scope and intricacy of financial management through a classified,
annotated treatment. The aim is to provide a thorough statement of a key area: the
corporate financing decision. The compilers believe it to be an area which:
(a) requires rigorous understanding if rational and effective study and decision
making is to be carried out;
(b) comprises substantial common ground of a large body of research and
practical management decision-taking in finance, accounting, corporate
planning and security analysis;
(c) is significant in terms of the magnitude of the managerial decisions entailed.
The compilers hope this work will prove useful to teachers, researchers and
students at institutions of higher education, as well as to senior financial managers,
accountants, corpor;J.te planners and consultants. It is hoped that librarians will be
helped in the service of their readers.
The classification scheme has been selected to facilitate precise location of an area
of interest. A brief description is appended to each entry to enable the reader to
select the individual works closest to his needs, and to decide whether to seek out the
original. The classified bibliography is supported by an alphabetical author index,
and a subject index which indicates the main themes of the 1270 works included.
ACKNOWLEDGMENTS
We wish to thank the many librarians at universities and other establishments for
their courtesy and help in expediting our search. We also thank the respondents to
our request for information on forthcoming publications. We are grateful to
publishers and to editors of journals for their provision of information, and in
particular to the publisher of Journal of business finance and accounting for
permission to draw on the synopses of the articles from that journal. We thank Mrs.
Hazel Niblock for her skilful composition and preparation of the typescript.
INTRODUCTION
The theory and practice of the corporate financing decision are the subject of this
annotated classified bibliography. For the purpose of definition and treatment of
the field, the compilers have had to allow for the following:
(a) the growing conceptual unity of the subject as a whole;
(b) the interdependence of sub-problems within the subject;
(c) the need to include in any serious statement of the field works which link it to
its source and related disciplines.
The recent evolution of corporate finance as a field of study! epitomizes these
characteristics of the subject. Theoretical advances have precipitated increasingly
integrated and comprehensive planning models, improvements in practice and
more informative results from positive studies. As long ago as 1966, Solomon
predicted that the subject would develop through treating 'all uses and all sources of
funds within a single framework' as part of 'the problem of financial evaluation in
an uncertain world'2. The increasingly unitary development of finance theory since
then has amply proved the point, so that in 1974 Weston was able to observe that
'the traditional trinity of money and capital markets, business finance, and
investments is no longer meaningful at the theoretical level and of questionable use
for descriptive and empirical study'3. Through the mean-variance security valu
ation theorem research into financial markets, corporate finance and investment
have been effectively synthesized4.
Theoretical formulations are increasingly free from the restrictive assumptions
which characterized early expositions, as reflected in Rubinstein's extension of the
simple mean-variance case to a general parameter-preference modelS. The
parameter-preference model in turn is now explicitly recognized and treated as part
of a greater whole. Kraus and Litzenberger6 demonstrate the complementarity of
the state-preference, mean-variance and logarithmic (growth-optimal) approaches
to valuation. The work of Black and Scholes? on the valuation of warrants and
options is potentially applicable to any corporate claim and financial structure.
Increasing generality and unitary treatment within the field have been accom
panied by intensified study of corporate finance in the context of its source
I. cf. R. J. Lister, 'Business finance: an evolving field of study', Journal of business finance and
accounting, Spring 1978, pp. 1-26.
2. E. Solomon, 'What should we teach in a course in business finance?', The Journal off inance, May
1966, pp. 413; 415.
3. J. F. Weston, 'New themes in finance', The Journal of finance, March 1974, p. 239.
4. M. E. Rubinstein, 'A mean-variance synthesis of corporate financial theory', The Journal off inance,
March 1973, pp. 167-181.
5. M. E. Rubinstein, 'The fundamental theorem of parameter preference security valuation', Journal of
financial and quantitative analysis, January 1973, pp. 61-69.
6. A. Kraus and R. H. Litzenberger, 'Market equilibrium in a multi-period state-preference model with
logarithmic utility', The Journal of finance, December 1975, pp. 1213-1227.
7. F. Black and M. J. Scholes, 'The pricing of options and corporate liabilities', Journal of political
economy, May-June 1973, pp. 637-654.
2 INTRODUCTION
disciplines. Fama and Miller's exposition in the context of the wealth allocation
model as a special case of the economic theory of choice is a particularly substantial
contribution in this respectS. Investigation of the relationship between corporate
finance and its neighbouring disciplines is proceeding equally zealously. Weston
observed in 19749 that 'important developments in society are requiring an open
systems approach which takes into account criteria not properly written in terms of
owners' wealth'.
In another direction the study of capital market equilibrium, especially at the
positive level, is benefitting from the recognition and study of its relationship to the
market for informationio.
At the level of sub-problems within finance and practical planning models, the
growing theoretical unity and generality has combined with growing technical
virtuosity to produce increasingly integrated and comprehensive planning models
and positive studies. Thompson II, Myers 12 and Myers and Pogue 13 exemplify
attempts to allow for the interdependence of the investment and financing decisions.
Vickersl4 and Arzacl5 integrate the production decision. Treatment of working
capital management and the long-term capital structure decision in an integrated
framework is realized in work such as that of Bierman, Chopra and Thomasl6.
Scope and method
A subject growing in unity and internal intricacy, and having strengthening links
with its source and related disciplines brings problems of definition and classifi
cation for a bibliographer.
In broadest terms, the compilers set out to include all published works in the
English language of lasting interest that are directly relevant to the corporate
financing decision, both in the normative and positive sense. Problems of definition
and classification arose chiefly under three headings:
I. Bounds of the field
2. Interdependence within the field
3. Need for numerous and different levels of categories and sub-categories
Under the first heading it was decided to extend the bibliography to include works
which link corporate finance to its related and source disciplines, while not including
works on them. Thus a work on the interdependence of the investment and
financing decision would be included, but not a work exclusively concerned with the
investment decision. A work on the link between the financing and the inventory
8. E. Fama and M. H. Miller, The theory off inance. Holt, Rinehart & Winston, New York, 1972.
9. Op. cit., p. 241.
10. N. J. Gonedes, The capital market, the market for information and external accounting', The
Journal of finance, May 1976, pp. 611-630; 'Discussion', pp. 677-679.
II. H. E. Thompson, 'Mathematical programing, the capital asset pricing model and capital budgeting
of interrelated projects', The Journal off inance, March 1976, pp. 125-131.
12. S. C. Myers, 'Interactions of corporate financing and investment decisions: implications for capital
budgeting', The Journal of finance, March 1974, pp. 1-25.
13. S. C. Myers and G. Pogue, 'A programming approach to corporate financial management', The
Journal off inance, May 1974, pp. 579-599; 'Discussion', pp. 614-616.
14. D. Vickers, 'Disequilibrium structures and financing decisions in the firm', Journal ofb usiness finance
and accounting, Autumn 1974, pp. 375-387.
15. E. R. Arzac, 'Structural planning under controllable business risk', The Journal off inance, December
1975, pp. 1229-1237.
16. H. Bierman, Jr., K. Chopra and J. Thomas, 'Ruin considerations: optimal working capital and
capital structure', Journal off inancial and quantitative analysis, March 1975, pp. 119-128.
INTRODUCTION 3
decision would be included, but not one on the inventory decision as such. In the
case of works linking corporate finance to its roots in capital market theory,
application of the above criteria has been particularly difficult. Some subjectivity
and arbitrariness have inevitably occurred, but it is hoped that by a policy of
including when in doubt, harm to usefulness of the work has been avoided.
Interdependence within the field has been treated, as illustrated below, by cross
references among entries within the body of annotations, and by the use of
secondary entries (containing author, title, and running number of main entry). The
need to include an item in more than one classification has in this way been met.
The need for numerous, and different levels of, categories and sub-categories
within a statement of corporate finance is well known to any student of the subject.
The relatively detailed classification of entries, described below, represents the
attempt to do justice to the subject's intricacy and to enable the reader to locate
precisely his area of interest. Where the scope of a category is not self-explanatory a
note is added at the beginning. The brief description attached to each entry will help
the user to locate individual works closest to his needs and to decide whether to seek
out the original.
No time limit is set on the works included but material has been discarded if it is
unlikely to be of interest to the student of modern financial theory and management
-for example, where an approach or idea has become irrelevant due to increased
knowledge, understanding or improved analytical techniques. Works which refer
exclusively to a highly localized or temporary institutional situation have also been
excluded. In common with most work in the field, attention is focused on the
financing decisions of publicly quoted companies.
All parts of the periodicals listed below and all books available to the compilers
up to mid-July 1977 were examined. In addition, academic institutions and
publishers of relevant periodicals and books throughout the English-speaking
world were circularized with a request for details of forthcoming publications.
Abstracts received as a result of this are shown as forthcoming and havegenerally
been included in the form received, without abbreviation, on the grounds that the
compilers would not normally be justified in editing without access to an original.
In a small number of cases the obligation to rely on photographs etc. of articles
has enforced the omission of exact dates, page numbers, volume numbers or part
numbers.
The classified bibliography is supported by an alphabetical author index and by a
subject index which indicates the main themes of the 1270 works included.
Using the bibliography
Entries are arranged in classified order, in accordance with the classification scheme
set out below. Within classes, the arrangement is alphabetical. Entries are numbered
consecutively. Their format is as follows:
Article
1417. Jones, John P. 'General finance', The journal of X, Vol. 6, No. I, May 1977,
pp. 69-78; reprinted in 27; 29; 'Comment' by JoNES, Albert, ibid., Vol. 6, No.
2, June 1977, p. 9.
Develops the hypothesis of Smith ( 1571) concerning the etc. (The numbers of the
reprints refer to the running numbers in this bibliography of the books of readings
where the reprints appear. The numbers in the annotations cross-refer to other
entries in the bibliography.)
