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What Should You Know About the Theory of Corporate Finance?

Stephen E. Skomp (Bowling Green State University)

American Journal of Business

ISSN: 1935-5181

Publication date: 28 October 1990


This paper outlines the thinking of financial theorists on issues most relevant to those influencing financial decision‐making within a firm. While the review is not comprehensive, it does provide a foundation for understanding what is included in the modern theory of corporate finance. Perhaps more importantly, the reader should gain an appreciation for what is financial “myth” and what is financial “trust.” The paper concludes with a section on managerial implications.



Skomp, S.E. (1990), "What Should You Know About the Theory of Corporate Finance?", American Journal of Business, Vol. 5 No. 2, pp. 15-24.




Copyright © 1990, MCB UP Limited