Book gives readers an informed account of some of the more bizarre financial episodes in recent times.
People will be writing postmortems on the creative excesses of the 1980s for many years, but Louis Lowenstein, a professor of finance and law at Columbia University, has already given us an informed account of where clever financial minds short-circuited.
Sense and Nonsense in Corporate Finance (Addison-Wesley, 1991, $24.95) takes readers into some of the more bizarre financial episodes in recent times. Lowenstein's discussion of leveraged buyouts and zero-coupon bonds is refreshingly nonacademic and sensible. Financial cleverness should not be a company's focus, he notes. "Research, marketing, and manufacturing are what win ball games." While the book is aimed at readers involved with publicly traded companies, others can gain insights into how to build value.