Ten Badly Explained Topics in Most Corporate Finance Books

ArXiv ID: ssrn-2079055 “View on arXiv”

Authors: Unknown

Abstract

This paper addresses 10 corporate finance topics that are not well treated (or not treated at all) in many Corporate Finance Books. The topics are: 1. Where doe

Keywords: Corporate Finance, Capital Budgeting, Cost of Capital, Valuation, Corporate Equity

Complexity vs Empirical Score

• Math Complexity: 4.5/10
• Empirical Rigor: 1.0/10
• Quadrant: Philosophers
• Why: The paper focuses on conceptual clarification and critique of established financial theory (like WACC and equity premium) with moderate mathematical notation, but it lacks any empirical data, backtests, or implementation details, relying instead on reviewing textbook recommendations and theoretical arguments.

  flowchart TD
    R["Research Goal: Identify 10 topics<br>poorly explained in Corporate<br>Finance books"] --> M["Methodology: Content analysis of<br>leading Corporate Finance texts"]
    M --> D["Data: Leading corporate finance<br>textbooks and literature"]
    D --> C["Computational Process: Cross-referencing<br>concepts vs. explanations; gap analysis"]
    C --> F["Key Findings: Identified gaps in<br>Cost of Capital, Valuation,<br>Equity structures, and Capital Budgeting"]