Includes bibliographical references and index.

Corporate governance -- Corporate financing: some stylized facts -- Outside financing capacity -- Some determinants of borrowing capacity -- Liquidity and risk management, free cash flow, and long-term finance -- Corporate financing under asymmetric information -- Topics: product markets and earnings manipulations -- Investors of passage: entry, exit, and speculation -- Lending relationships and investor activism -- Control rights and corporate governance -- Takeovers -- Consumer liquidity demand -- Credit rationing and economic activity -- Mergers and acquisitions, and the equilibrium determination of asset values -- Aggregate liquidity shortages and liquidity asset pricing -- Institutions, public policy, and the political economy of finance.

This text conveys the organizing principles that structure the analysis of key management and public policy issues, such as the reform of corporate governance and auditing; the role of private equity, financial markets, and takeovers; and the design of managerial incentive packages.

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