Financial Economics

As a matter of full disclosure, I took my Ph.D. course in Financial Economics from one of the authors (Guofu Zhou). Now for my review.Financial Economics is one of the best books out there that bridges the gap between MBA finance textbooks (e.g., Brealey, Myers, and Allen) and Ph.D. finance texts. Any serious student of finance should read this book and they will learn a lot from it. The level of this book is similar to Copeland, Weston, and Shastri's Financial Theory and Corporate Policy. The latest edition of that book though has a copyright date of 2004 and this book was published in 2012. Hence, there are some updated data and research that you will find in this text. As a general matter, though, these two books primarily touch on the same topics with a similar level of mathematical rigor. Specifically, the math involved is not too heavy, which makes it perfect for students who are willing to spend a little effort getting a deeper understanding of finance.Financial Economics goes through some of the most important theories in financial economics (e.g., value maximization, the fundamental theorem, separation theorems) that it can easily benefit both students and practitioners. In my experience, a problem with many students of finance (actual students and practitioners) is that they do not know the finance and simply plug numbers into models and accept the output. For example, this book discusses how different items used to calculate free cash flows (e.g., depreciation tax shields) can be discounted at a different rate compared to the other line items is not something you would expect a majority of students who have studied valuation to know. Most people would just blindly apply depreciation tax shields to EBITDA and discount the resulting cash flows (after adjustments) at the same cost of capital.

Good book. Limited on derivatives and bond markets.

I bought this book for my undergrad financial econ course. I did not find this book to be too helpful. Topics presented were difficult to understand, it assumes you have a strong math background. I think this book would be more appropriate for a grad level course. Even so, I think the topics could be explained more clearly. The math is pretty involved for someone who's only taken business calc. I used the book max of 3-4 times as reference. Not worth getting.

Full of typos, including in formulas and graphs. Explanations are not clear at all. This is the worst textbook I have ever seen.

Presumo che l articolo, sebbene di seconda mano, fosse in perfetto stato, davvero come nuovo. Peccato che l imballaggio sia stato veramente ridicolo, il risultato è un libro dalla copertina rigida visibilmente piegato. Consegna non rapidissima considerate gli estremi indicati di 2 settimane, comunque non fuori tempo massimo.*****Il venditore mi ha contattato spontaneamente proponendomi un rimborso. Il danno al mio acquisto fa pensare ad un caso, comunque rivenditore serio. Ricomprerò da loro se ne avrò occasione.*****

A book that I ordered is exactly as it was described. It is in great condition and it came on time. Thank you!