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Theory & Practice of Corporate Finance

In: Business and Management

Submitted By Zewdula
Words 3531
Pages 15
Table of Contents I. Article Summary 3 1.1. Article Title: 3 1.2. Authors: 3 1.3. Publication: 3 1.4. Reviewer: 3 1.5. Purpose of the Article 3 II. Analysis and Synthesis 4 2.1. Most important conclusion 4 2.2. Special issue about the study subject 6 2.3. Relating issues raised in the article with the business environment and financial system in Ethiopia 7 2.4. Points we Agree or Disagree with 7 2.5. One part of the article that helped to understand finance 8 III. Hypothesis Comparison. 8 IV. How the information in the article affect the business manager in us 9 4.1. Becoming a better financial manager 9 4.2. Becoming a better professional 9 4.3. Practicing suggestions in the article 9 4.4. Issues listed by the authors 10 References 13

I. Article Summary
1.1. Article Title: The theory and practice of corporate finance: Evidence from the field
1.2. Authors: John R. Graham and Campbell R. Harvey
1.3. Publication: the article is published in the Journal of Financial Economics, Volume 60, Issue 2, Pages 187-243, dated 31/05/2001. The publisher is North-Holland.
1.4. Reviewer: Group 8 members 1. 1.5. Purpose of the Article
The article reports the result of a comprehensive survey on the practice of corporate finance conducted in 1999 G.C by the above mentioned two authors in the USA. Unlike previous similar studies in theory and practice of corporate finance, the article address a broader scope in the field of corporate finance including capital budgeting, cost of capital and capital structure, which according to the authors allows “linking responses of survey participants across areas”. Selecting a large sample of cross-section firms with approximate population size of 4,440, the authors claim to have solicited the response of 392 chief financial officers and to have analysed how these firms practically apply the text book recommendations

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