TY - JOUR
T1 - Financial Theory, Breakdown of Separation Theorems, and Corporate Policies
AU - Fung, Hung-Gay
AU - Yau, Jot
AU - Zhang, Gaiyan
PY - 2011/1/1
Y1 - 2011/1/1
N2 - This study examines the implications of the separation theorems in finance to shed light on how these theorems can be refined to accommodate real life financial applications and decision makings. We also generalize the financial theory of the firm by incorporating real options in the production function to accommodate the complexity of real world issues. This modified financial theory of the firm does not presume a perfect market but accommodates changes in the environment to set up investment and financial policies. It also integrates different business functions such as marketing and human resources management into the decision-making framework for the long-term growth and value maximization of the firm.
AB - This study examines the implications of the separation theorems in finance to shed light on how these theorems can be refined to accommodate real life financial applications and decision makings. We also generalize the financial theory of the firm by incorporating real options in the production function to accommodate the complexity of real world issues. This modified financial theory of the firm does not presume a perfect market but accommodates changes in the environment to set up investment and financial policies. It also integrates different business functions such as marketing and human resources management into the decision-making framework for the long-term growth and value maximization of the firm.
UR - http://www.irabf.org/upload/journal/prog/2011v3n1_2%20abstract.pdf
UR - http://irabf.org/publication/2Financial%20Theory,%20Breakdown%20of%20Separation%20Theorems,%20and%20Corporate%20Policies.pdf
M3 - Article
VL - 3
JO - International Review of Accounting, Banking, and Finance
JF - International Review of Accounting, Banking, and Finance
ER -