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Corporate Finance

  • Gordon Boyce
  • Simon Ville
Chapter

Abstract

Our modern capital markets are of global proportions. An investor in Sydney can buy shares in a Japanese, American or British corporation as easily as she can in an Australian one. Similarly, she may invest in a shipping enterprise, a property firm or a computer company, such is the diversity of opportunity. The broadening and restructuring of international financial markets over the last half century and the accompanying information technology revolution have made this possible. Corporations themselves think globally when seeking new investment or acquisition opportunities. Good investment decisions, by the institutional or private investor, however, require effective information channels. Vast quantities of information have become easily accessible particularly through the internet. However, as we saw in Chapter 3, the bounded rationality of the human mind means the investor’s task of selecting good-quality, reliable information may be no easier than in the past and perhaps more difficult. For companies seeking new or additional finance, signalling their worth also becomes more difficult in a crowded market.

Keywords

Corporate Governance Capital Market Stock Exchange Information Asymmetry Limited Liability 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Further Reading

  1. Baskin, J.B. and Miranti, P.J. (1997) A History of Corporate Finance (Cambridge: Cambridge University Press).CrossRefGoogle Scholar
  2. Davis, L. (1966) ‘The Capital Markets and Concentration in the United States and the United Kingdom: a Comparative Study’, Economic History Review, 2nd series, 19.Google Scholar
  3. Hudson, P. (1994) ‘Financing Firms, 1700–1850’, in M.W. Kirby and M.B. Rose (eds), Business Enterprise in Modern Britain: From the Eighteenth to the Twentieth Centuries (London: Routledge).Google Scholar
  4. Kindleberger, C.K. (1996) Manias, Panics, and Crashes: A History of Financial Crises (New York: Peter Wiley).CrossRefGoogle Scholar
  5. Lamoreaux, N. (1986) ‘Banks, Kinship and Economic Development: The New England Case’, Journal of Economic History, 46 (3).Google Scholar
  6. Michie, R. (1988) ‘Different in Name Only? The London Stock Exchange and Foreign Bourses, c. 1850–1914’, Business History, 30.Google Scholar
  7. Neal, L. (1993) The Rise of Financial Capitalism International Capital Markets in the Age of Reason (Cambridge: Cambridge University Press).Google Scholar

Copyright information

© Gordon Boyce and Simon Ville 2002

Authors and Affiliations

  • Gordon Boyce
  • Simon Ville

There are no affiliations available

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