Murdock's Theory of Corporate Finance

Murdock's Theory of Corporate Finance suggests that a company's financial decisions—such as how it raises funds or allocates resources—are influenced by its specific business operations, industry environment, and growth opportunities. It emphasizes that optimal financial strategies depend on the company's unique characteristics rather than a one-size-fits-all approach. In essence, financial management should align with the company's internal factors and external market conditions to maximize value and ensure sustainable growth.