Why Brealey Myers Has Been the Standard for 50 Years
Principles of Corporate Finance was first published in 1981 and has been the dominant corporate finance textbook at UK universities ever since. Its longevity comes from its approach: rather than presenting finance as a set of formulas to memorise, Brealey Myers builds from first principles — explaining why capital markets work the way they do, why firms make the financing and investment decisions they make, and how to think about risk and return from the ground up.
The narrative style is its defining advantage. Students consistently describe it as genuinely readable — unusual for a finance textbook. Concepts like NPV, WACC, and the CAPM are introduced through intuitive explanations before the mathematics, which means the maths makes sense when it arrives rather than appearing as arbitrary formulas.
Current edition: 14th Edition (2023, Brealey, Myers & Allen). The 13th edition covers the same core content and is available used for significantly less. International editions are identical in content — buy the global edition to save £30-40.
Brealey Myers vs Berk DeMarzo
Two of the most recommended textbooks for UK finance students — compared so you don’t have to buy both to find out which suits you.
In This Comparison
The Two Books at a Glance
Principles of Corporate Finance
| Approach: | Principles-based, intuitive |
| Strengths: | Clarity, real-world examples |
| Best For: | Conceptual depth, UK programmes, MBA prep |
Corporate Finance
| Approach: | Mathematical, rigorous |
| Strengths: | Problem sets, quantitative depth |
| Best For: | Quantitative rigour, problem-solving, US-style courses |
Head-to-Head Comparison
| Feature | Brealey Myers | Berk DeMarzo |
|---|---|---|
| Conceptual Clarity | ★★★★★ Outstanding | ★★★★☆ Very good |
| Mathematical Rigour | ★★★★☆ Very good | ★★★★★ Outstanding |
| Real-World Examples | ★★★★★ Excellent | ★★★★☆ Very good |
| Problem Sets | ★★★★☆ Good | ★★★★★ Extensive |
| UK University Prevalence | Very widely used | Widely used |
| Writing Style | Accessible, engaging | Dense, technical |
| Capital Markets Coverage | ★★★★★ Excellent | ★★★★☆ Good |
When to Choose Each Book
Choose Brealey Myers If You:
- Want to understand the intuition behind corporate finance before the maths
- Your course has qualitative or essay-based assessment
- Are at a UK university where Brealey is the standard text
- Plan a career in corporate finance, consulting, or general management
- Are undecided — Brealey is the safer general-purpose choice for UK students
Choose Berk DeMarzo If You:
- Your course is heavily quantitative with problem-set based assessments
- Plan to go into investment banking, private equity, or quantitative finance
- Want the most mathematically rigorous corporate finance treatment available
- Your reading list specifies Berk DeMarzo
- Prefer working through lots of numerical problems to consolidate learning
What Students Say
“Brealey Myers made me genuinely understand why companies make the financial decisions they do. The intuition comes first, then the maths. By the time I got to my exams I wasn’t just applying formulas — I actually understood what they meant.”
“Berk DeMarzo is demanding but if you want to work in investment banking it’s the right preparation. The problem sets are brutal in a good way — after working through them exam questions feel straightforward.”
“I used both — Brealey for essays and conceptual questions, Berk for problem sets. If you can only buy one and your course is UK-standard, Brealey is probably the one to get.”
What About Hillier et al — Corporate Finance?
There is a third corporate finance textbook widely used at UK universities that often doesn’t appear in online comparisons: Corporate Finance by Hillier, Clacher, Ross, Westerfield & Jordan (European Edition). Google’s own recommendations now list it alongside Berk & DeMarzo as one of the two primary undergraduate corporate finance texts for UK students.
The European Edition of Ross, Westerfield & Jordan adapted specifically for UK and European undergraduate finance programmes. More accessible than Berk & DeMarzo and more practically focused than Brealey Myers. Widely used at post-92 universities and on undergraduate business programmes where Brealey or Berk is considered too advanced.
Best for: Students on undergraduate business or accounting and finance programmes who find Brealey or Berk too demanding. Also used widely on CFA and professional qualification preparation courses.
Which of the three should you buy? Check your reading list first — your department will specify one. If unspecified: Brealey Myers for most UK university programmes, Berk & DeMarzo for quantitative or investment banking track programmes, Hillier for undergraduate business programmes or if Brealey and Berk feel too advanced.
Our Final Verdict
If your reading list gives you a free choice, Brealey Myers edges it for most UK finance programmes. Its principles-first approach, real-world grounding, and accessible writing align well with how UK business schools assess finance at undergraduate level. Berk DeMarzo is the better choice if your course is heavily quantitative or you are targeting investment banking.Brealey Myers or Berk DeMarzo — which corporate finance textbook should I buy?
Check your reading list first. Both are outstanding. Brealey Myers has stronger conceptual narrative and is considered more readable. Berk & DeMarzo is more systematic with stronger problem sets. If your programme specifies one, use that. If unspecified, Brealey Myers is the more universally used choice.
Do I need both Brealey Myers and Berk DeMarzo?
No — they cover the same core corporate finance content. Buy whichever your reading list recommends. Having both is unnecessary unless you are doing advanced research or find one text’s explanation of a specific topic clearer than the other.
Are international editions of corporate finance textbooks acceptable?
Yes — the international editions of both Brealey Myers and Berk DeMarzo are identical in content to the UK editions. Buy the international edition and save £30-50 versus UK retail price.
Which UK universities use Brealey Myers and which use Berk DeMarzo?
Brealey Myers is used at LSE, Warwick, Imperial, and LBS. Berk & DeMarzo is used at Cambridge, Oxford, and Edinburgh. Both are used at UCL, Bristol, and Manchester depending on the module. Always check your specific reading list.
What other finance textbooks do I need alongside corporate finance?
Most finance degrees require a corporate finance text, an investments text (Bodie Kane Marcus is standard), and a financial markets text. Hull’s Options Futures and Other Derivatives is standard for derivatives modules. Damodaran’s Investment Valuation is widely used for valuation modules at LSE and Warwick.
Last Updated: July 2026 | Author: www.textbooks.co.uk/ Editorial Team Prices change frequently — always click through to verify before purchasing. We earn commissions from qualifying purchases. Read our full disclaimer.