This course deals with the following topics in financial economics: (1) Theoretical and empirical issues concerning the relevance of corporate financial structure; (2) Interactions between corporate investment and financing decisions; and (3) The role of the financial system and the legal system in economic development and growth. There is no required textbook. The course will rely quite extensively on readings of journal articles. A recommended book is: T. Copeland, J. Weston, K. Shastri, Financial Theory and Corporate Policy, Addison-Wesley, 2005, fourth edition.