Donald H. Chew, Jr., has been the editor of the Journal of Applied Corporate Finance since its start in 1981 and was also a founding partner of the consulting firm Stern Stewart & Co. He holds a PhD in English and American literature as well as an MBA in finance, both from the University of Rochester.

Finance matters—a lot. That’s the punch line of this important book by Donald Chew, bringing together his insights as a thinker and practitioner of corporate finance to assess how financial markets drove better corporate performance, productivity, and living standards. All students and practitioners of finance should share Chew’s lens and focus on the magic of finance capitalism.

• Prologue: The Magic of Finance Capitalism1. An Introduction to Corporate Finance: What Is It, and Why Does It Matter?2. The Cautionary Tale of Japan Inc.—and the Link between Corporate Finance and Social Wealth3. Merton Miller and the Chicago School Theory of Value4. Michael Jensen, William Meckling, and the Rochester School of Corporate Control5. Stewart Myers and the MIT School of Real Options and Capital Structure6. Clifford Smith, Rene Stulz, and the Theory and Practice of Corporate Risk Management7. Jensen Redux, Steve Kaplan, and the Success of U.S. Private Equity8. The Rise and Fall of Stern Stewart’s EVA Financial Management System9. The Perennially Vexing Problem of U.S. CEO Pay and Steve O’Byrne’s Quest for the Perfect Pay Plan10. Martin Fridson, the Extraordinary Success of the High-Yield Bond Market, and the Leveraging of Corporate America11. Carl Walter and Exposing the Brittle Façade of Chinese Corporate and Public Finance12. James Sweeney and Micro-based Attempts to Make Macro RelevantEpilogue: Sustainable Financial Management (and the Promise and Pitfalls of ESG)NotesIndex

Donald H. Chew, Jr., has been the editor of the Journal of Applied Corporate Finance since its start in 1981 and was also a founding partner of the consulting firm Stern Stewart & Co. He holds a PhD in English and American literature as well as an MBA in finance, both from the University of Rochester.

Finance matters—a lot. That’s the punch line of this important book by Donald Chew, bringing together his insights as a thinker and practitioner of corporate finance to assess how financial markets drove better corporate performance, productivity, and living standards. All students and practitioners of finance should share Chew’s lens and focus on the magic of finance capitalism.

• Prologue: The Magic of Finance Capitalism1. An Introduction to Corporate Finance: What Is It, and Why Does It Matter?2. The Cautionary Tale of Japan Inc.—and the Link between Corporate Finance and Social Wealth3. Merton Miller and the Chicago School Theory of Value4. Michael Jensen, William Meckling, and the Rochester School of Corporate Control5. Stewart Myers and the MIT School of Real Options and Capital Structure6. Clifford Smith, Rene Stulz, and the Theory and Practice of Corporate Risk Management7. Jensen Redux, Steve Kaplan, and the Success of U.S. Private Equity8. The Rise and Fall of Stern Stewart’s EVA Financial Management System9. The Perennially Vexing Problem of U.S. CEO Pay and Steve O’Byrne’s Quest for the Perfect Pay Plan10. Martin Fridson, the Extraordinary Success of the High-Yield Bond Market, and the Leveraging of Corporate America11. Carl Walter and Exposing the Brittle Façade of Chinese Corporate and Public Finance12. James Sweeney and Micro-based Attempts to Make Macro RelevantEpilogue: Sustainable Financial Management (and the Promise and Pitfalls of ESG)NotesIndex

Donald H. Chew, Jr., has been the editor of the Journal of Applied Corporate Finance since its start in 1981 and was also a founding partner of the consulting firm Stern Stewart & Co. He holds a PhD in English and American literature as well as an MBA in finance, both from the University of Rochester.

Finance matters—a lot. That’s the punch line of this important book by Donald Chew, bringing together his insights as a thinker and practitioner of corporate finance to assess how financial markets drove better corporate performance, productivity, and living standards. All students and practitioners of finance should share Chew’s lens and focus on the magic of finance capitalism.

• Prologue: The Magic of Finance Capitalism1. An Introduction to Corporate Finance: What Is It, and Why Does It Matter?2. The Cautionary Tale of Japan Inc.—and the Link between Corporate Finance and Social Wealth3. Merton Miller and the Chicago School Theory of Value4. Michael Jensen, William Meckling, and the Rochester School of Corporate Control5. Stewart Myers and the MIT School of Real Options and Capital Structure6. Clifford Smith, Rene Stulz, and the Theory and Practice of Corporate Risk Management7. Jensen Redux, Steve Kaplan, and the Success of U.S. Private Equity8. The Rise and Fall of Stern Stewart’s EVA Financial Management System9. The Perennially Vexing Problem of U.S. CEO Pay and Steve O’Byrne’s Quest for the Perfect Pay Plan10. Martin Fridson, the Extraordinary Success of the High-Yield Bond Market, and the Leveraging of Corporate America11. Carl Walter and Exposing the Brittle Façade of Chinese Corporate and Public Finance12. James Sweeney and Micro-based Attempts to Make Macro RelevantEpilogue: Sustainable Financial Management (and the Promise and Pitfalls of ESG)NotesIndex