Corporate finance is a challenging industry. To make decisions about financial and investment practices, you need a thorough understanding of how money flows within a corporation.
This practice includes mastering financial management, monetary policies, stocks and bonds, and more. You are required to spot trends and adapt accordingly, so you should polish your decision-making skills to perfection.
Business students get a basic knowledge of corporate finance in college. However, if you want to keep up with this fast-paced industry, you need to read the latest corporate finance textbooks. They are a great source of up-to-date information for students and professors alike.
Quick Look: The Best Corporate Finance Textbooks
- Corporate Finance: The Core by Jonathan Berk and Peter DeMarzo - Get this textbook
- Fundamentals of Corporate Finance by Stephen A. Ross - Get this textbook
- Corporate Finance, 12th Edition by Stephen A. Ross - Get this textbook
- Principles of Corporate Finance by Richard Brealey - Get this textbook
- Corporate Finance: A Focused Approach by Michael Ehrhardt - Get this textbook
- Corporate Finance: Theory and Practice by Pierre Vernimmen - Get this textbook
- Applied Corporate Finance by Aswath Damodaran - Get this textbook
- Corporate Finance by Jeffrey Haas - Get this textbook
- Lessons in Corporate Finance: A Case Study Approach to Financial Tools, Financial Policies, and Valuation by Paul Asquith - Get this textbook
- Essentials of Corporate Finance by Stephen A. Ross - Get this textbook
Features to Look for in a Corporate Finance Textbook
A good corporate finance book should be comprehensive, covering investments and financial analysis in detail. Risk is always present in this branch of finance, so you should learn how to measure and assess it.
Corporate finance textbooks also need to focus on case studies, showing you how the theory applies in real-world situations. With this said, the crucial features of a corporate finance textbook are the author(s) and the content.
Author’s Reputation
Some of the best corporate finance textbooks are written by renowned college professors. This doesn’t mean you should skip the ones authored by expert consultants or CFOs.
The aim is to find an author with at least a couple of decades of experience within this branch of finance and a few written works published. Authors with awards are also worth taking into consideration.
Content
Every corporate finance textbook needs to be rich in up-to-date examples, data, and tips. However, it's easy to lose yourself in statistics and charts. To avoid this, the textbook should be easy to read as well.
Corporate finance involves a lot of calculation and analysis. To hone those skills, you can invest in a textbook that comes with applications, Excel spreadsheets, or online resources.
Cost
Corporate finance textbooks can be very expensive. But bear in mind that they may prevent you from making costly mistakes in your career. Consider your budget and how much you’re willing to spend on educational materials when deciding between texts.
The Top Corporate Finance Textbooks
We’ve created a list of the best corporate finance textbooks, following the principles outlined above. Check out our recommendations when comparing the best options for you.
1. Corporate Finance: The Core by Jonathan Berk and Peter DeMarzo
- Who’s it for? Advanced students and professors
- Price: On sale
Corporate Finance: The Core features 6 parts and covers topics from financial statement analysis to advanced valuation. It provides detailed insights about investment decision rules and capital market efficiency. There is also a special case study for financial modeling and valuation.
The textbook is coauthored by Jonathan Berk, a professor at Stanford University, and Professor Peter DeMarzo, the VP of the American Finance Association.
2. Fundamentals of Corporate Finance by Stephen A. Ross
- Who’s it for? Beginners
- Price: On sale
In 25 chapters, this textbook takes you through every detail of corporate finance. You’ll get a solid understanding of short term and long-term financial planning. It provides insights about measuring market risk in relation to expected returns. Some sections cover financial analysis, as well as payout and debt policy.
The team behind Fundamentals of Corporate Finance includes renowned college professors Richard A. Brealey, Stewart C. Myers, and Alan J. Markus.
3. Corporate Finance, 12th Edition by Stephen A. Ross
- Who’s it for? Beginners
- Price: On sale
This comprehensive textbook focuses on the basic theories of corporate finance, and it connects the theory to contemporary examples. It deals with important corporate finance concepts like net present value, agency theory, and arbitrage. Plus, the latest edition includes information about the Tax Cuts and Jobs Act (TCJA).
This textbook was written by Stephen A. Ross, Randolph W. Westerfield, Jeffrey Jaffe, and Bradford D. Jordan. They are acclaimed professors at prestigious US colleges.
4. Principles of Corporate Finance by Richard Brealey
- Who’s it for? All levels
- Price: On sale
Principles of Corporate Finance offers many different options to practice financial problem-solving.
There are financial calculators and applications after each chapter. This makes it easier for students to grasp the specifics of financial statements, flow-to-equity valuation, and more. The authors are all professors from top British and American universities.
5. Corporate Finance: A Focused Approach by Michael Ehrhardt
- Who’s it for? Advanced students
- Price: On sale
This textbook features 17 chapters which cover financial management, bond valuation, cost of capital, and more. It also provides you with a detailed understanding of distributions to shareholders, as well as capital structure decisions.
Michael C. Ehrhardt, a professor at the University of Tennessee, coauthored this textbook with Professor Eugene F. Brigham from the University of Florida.
6. Corporate Finance: Theory and Practice by Pierre Vernimmen
- Who’s it for? Beginners and professors
- Price: On sale
Corporate Finance: Theory and Practice takes a scenario-based approach, drawing a parallel between corporate finance concepts and real-world applications. It also deals with certain real estate-related aspects of financial management. Plus you get access to quizzes, statistics, and additional articles on the textbook’s website.
Pascal Quiry, Maurizio Dallocchio, Yann Le Fur, Antonio Salvi, and Pierre Vernimmen are leading European corporate finance experts and college professors.
7. Applied Corporate Finance by Aswath Damodaran
- Who’s it for? All levels
- Price: On sale
Applied Corporate Finance also divides business decisions into 3 groups: dividend, investment, and financing. This makes it easier for students to understand different aspects of decision-making.
Aswath Damodaran is the author of this textbook and a professor of finance at Leonard N. Stern School of Business. He is also the recipient of the Distinguished Teaching Award and the author of more than a few other publications in finance.
8. Corporate Finance by Jeffrey Haas
- Who’s it for? Advanced students
- Price: On sale
This book teaches you about the connection between finance, accounting, and corporate law. In addition to this, it features a detailed analysis of the ways that the law affects a company’s capital structure and securities.
Corporate Finance was written by Professor Jeffrey J. Haas from New York Law School. Professor Haas also consults a select number of clients from various industries.
9. Lessons in Corporate Finance: A Case Study Approach to Financial Tools, Financial Policies, and Valuation by Paul Asquith
- Who’s it for? All levels
- Price: On sale
This textbook explains the fundamental principles of corporate finance in the form of questions and answers. It offers case studies which are designed to promote in-class discussions. The content covers areas like company and project valuation, financing needs, and capital structure.
It was authored by Professors Paul Asquith from MIT and Lawrence A. Weiss from Tufts University. They put a special emphasis on crucial corporate finance concepts like debt maturity, ratios and pro formas, asymmetric information, etc.
10. Essentials of Corporate Finance by Stephen A. Ross
- Who’s it for? Beginners
- Price: On sale
Essentials of Corporate Finance distills the basic principles of the industry into 18 chapters. The topics range from corporate finance ethics to international capital budgeting. IPO valuation, dividend policy, and project cash flow are covered too.
The team of authors includes professors Stephen A. Ross, Randolph W. Westerfield, and Bradford D. Jordan. They created this textbook with all business students in mind.
Get the Best Corporate Finance Textbooks
As a student, you can gain a solid grasp on the complexities of this industry by using the textbooks from our list. For professors, these textbooks can be an invaluable source of up-to-date case studies and interactive teaching materials. Experienced corporate finance professionals can read about innovations and new perspectives.
But whatever your profession is, these choices pair well with basic finance books as well. Corporate finance involves understanding investments, so you should also take the time to study the stock market.
Frequently Asked Questions
What features do you need to consider when selecting an excellent corporate finance textbook?
You should think about the content, costs and author credentials.
What are the best corporate finance textbooks for professionals?
Benzinga recommends “Corporate Finance,” “Corporate Finance Theory and Practice” and “Applied Corporate Finance.”