Top 10 Books on Business Financing

30 Jun, 2016 / Comments: Comments Off on Top 10 Books on Business Financing / By

Summer is a great time to catch up on some financial reading. We’ve put together a list of ten books on business finance that can’t be missed. These picks will propel your professional career, as well as help your personal finances. If you are a finance professional or a business owner who wants a better understanding of the fundamentals behind business finance then look no further.

 

“When Genius Failed” by Roger Lowenstein

This book is considered a business classic, but has been given a new afterword to discuss the parallels between the recent financial crisis. Lowenstein perfectly captured the ups and downs of Long-Term Capital Management. He uses internal memos and interviews from many of the key players in order to discuss the rise and fall of funds. He also explains the impact of Wall Street’s culture on its failure.

 

“The Theory of Investment Value” by John Williams

Williams was one of the earliest financiers to use the discounted cash flow theory, which is still popularly used for company evaluation. Although Theory of Investment Value was written in 1938, it is still worth the read as it is considered one of the most important finance books in history. In the book, he spells out the discounted cash flow theory and focuses on dividend based valuation. Williams received four Harvard degrees and was a professor of economics at the University of Wisconsin.

 

“The Foundations of Finance: Portfolio Decisions and Securities” by Eugene Fama

Eugene Fama went to Tufts University to receive his undergraduate degree before receiving his MBA from the University of Chicago’s Booth School of Business. He went on to teach at the University of Chicago once he received his Ph.D. He is known for creating the efficient market hypothesis. His book, ‘The Foundations of Finance: Portfolio Decisions and Securities Prices’, is only one of many financial works completed by Fama. It covers many of the basics of finance practices and so is a great starter read for those looking to learn the basics of finance.

 

“Continuous-Time Finance (Macroeconomics and Finance)” by Robert Menton

Merton’s book titled, ‘Continuous-Time Finance (Macroeconomics and Finance) discusses modern finance, as well as continuous-time finance, as the title hints. The book is in the format of a collection of papers that Merton wrote over a 25-year time period and is considered to be one of the most intellectually stimulating finance books available.

 

“The Essays of Warren Buffet: Lessons for Corporate America” by Warren Buffet

Warren Buffet is one of the most successful investors in history. His book is in the form of a series of letters that he wrote to his company, Berkshire Hathaway’s shareholders. The letters delve into the education of business concepts and principles that Buffet used himself to create an enormously successful company and gives readers a look at how exactly he made his company so successful.

 

“Capital in the Twenty-First Century” by Thomas Piketty

This book analyzes a collection of data from twenty countries that go back as far as the eighteenth century in order to analyze key social and economic patterns. It is a must read as it sets a new era of thought about wealth.

 

“The Known, the Unknown, and the Unknowable in Financial Risk Management” by Francis Diebold, Richard Herring, and Neil Doherty

This book gives a unique approach to managing financial risk and is a crucial read for business owners as it allows them to understand the elements that are considered risks that must be carefully assessed and those that are not. This book is a fantastic read for aiding business owners to conceptualize different kinds of financial risk that are associated with any situation.

 

“Becoming a Better Value Creator: How to Improve the Company’s Bottom Line – and Your Own” by Anjan Thakor

Becoming a Better Value Creator helps business owners foster the idea of long term viability in regards to value. The book gives five ways to create value that promote success in the future. It is quite an easy read and is a must for those who own their own business and are looking to increase profits.

 

“Competitive Strategy: Techniques for Analyzing Industries and Competitors” by Michael Porter

This book delves into the popular techniques for any business professional who want to attain a better understanding of how to interact and cope with the tumultuous financial sector.

 

“The Theory and Practice of International Financial Management” by Reid Click

The Theory and Practice of International Financial Management is great for business owners who are interested in going international. Although it was written for an MBA course in International Corporate Finance, it is quite applicable to many areas in the financial field and so is a great read. The book is geared towards covering simple principles that come together to be quite applicable in the professional world.

 

William Mahnic
William Mahnic is a Finance Professor at Case Western University and has spent more than 20 years in the finance industry before becoming a professor. Mahnic has appeared as a commentator on both TV and radio talk shows including NPR, Crain's Cleveland Business, WKYC 3 and The Washington Post. He has been interviewed in BusinessWeek, Wall Street Journal and The Los Angeles Times.

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