Click here for Amazon book listing.

"… Madden’s book explains a way of being that enables those who work for, or invest in, business firms to see beyond accounting silos and short-term quarterly earnings and to focus on capabilities instrumental for creating long-term future and sustainable value for the firm’s stakeholders. I can’t recommend this astounding book enough especially given its deep and timely insights for our world today."

John Seely Brown, former Chief Scientist for Xerox Corp
and Director of its Palo Alto Research Center (PARC)

"…Value Creation Principles is ideally suited to facilitate progress in the New Economy by opening up the process by which firms build knowledge and create value, which is a needed step in revising how neoclassical economics treats the firm."

Tyler Cowen, Professor of Economics, George Mason University

"Madden rightfully points out that both textbooks and more advanced economic theories of the firm fail to address the concerns of top management and boards of directors. He offers a tantalizing pragmatic alternative that directly connects to quantitative changes in the firm’s market value…"

David J. Teece, Thomas W. Tusher Professor in Global Business,
Haas School of Business, University of California, Berkeley

"Drawing upon a long history of experience and research, Madden integrates management theory and firm valuation … He convincingly deviates from traditional accounting standards and bedazzling quantitative methods in developing the pragmatic theory of the firm that is well suited to the New Economy’s reliance on intangible assets and human capital."

Brian Singer, CFA, Partner, William Blair, Dynamic Allocation Strategies
and former chairman of the CFA Institute




Work is underway to introduce in Congress a Free To Choose Medicine bill.  It would empower patients, advised by their doctors, to make informed decisions on the use of not-yet-FDA-approved drugs in late stage clinical testing, click here.

Free To Choose Medicine (FTCM) would create a new American industry focused on facilitating data transmission from doctors, improving biopharmaceutical R&D, and analyzing and distributing information that significantly advances personalized medicine.  Passage of a FTCM Act would be a defining moment for America—a directional change from today’s trend of increasing litigation and regulations as well as a stake in the ground that control of medical decisions belongs, first and foremost, with individual patients and doctors, and not the government.

The journal Science published an article highly critical of FTCM in general, and in particular, my role in Japan’s implementation in 2014 of their version of FTCM (conditional approval), click here. My response was published in Econ Journal Watch, click here.




I have a keen interest in the advantages and limitations of theories of human behavior. Click here for a monograph that describes Perceptual Control Theory (PCT).




ESG Metrics and the Purpose of the Firm

The Pragmatic Theory of the Firm,” 2021, Journal of Applied Corporate Finance, 33(1): 98-110.

Strategic Finance article “Strategic Life-cycle Analysis: The Role of the CFO

Value Creation Principles: The Pragmatic Theory of the Firm Begins with Purpose and Ends with Sustainable Capitalism, 2020, Hoboken, NJ: John Wiley & Sons, here for Amazon listing.

Management’s Key Responsibility,” 2018, Journal of Applied Corporate Finance, 30(3): 27-35.

The Purpose of the Firm, Valuation, and the Management of Intangibles,”2017, Journal of Applied Corporate Finance, 29(2): 76-86.

Value Creation Thinking, 2016, Naperville, IL: Learning What Works. Click here for endorsements and here for a Foundation for Economic Education book review. And here for a review by a philosopher.

Use the Life-Cycle Framework to Improve Stock Selection,” 3 October 2016, Seeking Alpha.

Wealth Creation, 2010, Hoboken, NJ: John Wiley & Sons. Click here for endorsements.

Applying a System Mindset to Stock Valuation,” 2009. In Benton Gup and Rawley Thomas eds., The Valuation Handbook: Valuation Techniques of Today’s Top Practitioners, Hoboken, NJ: Wiley & Sons.

Shareholder Value Reviews,” September 2008, Strategic Finance.

For Better Corporate Governance, the Shareholder Value Review,” 2007, Journal of Applied Corporate Finance, 19(1): 102-14.

Guidepost to Wealth Creation: Value-Relevant Track Records,” 2007, Journal of Applied Finance Fall/Winter: 119-130.

Maximizing Shareholder Value and the Greater Good, 2005, Naperville, IL: Learning What Works.

“CFROI Valuation, Efficient Markets, and Behavioral Finance,” March 2004, Valuation Issues.

Will Your Next Acquisition Pay Off?”, May/June 2002, Shareholder Value Magazine.

CFROI Valuation: A Total System Approach to Valuing the Firm, 1999, London: Butterworth-Heinemann. Click here for endorsements.

The CFROI Valuation Model,” 1998, Journal of Investing, 7(1): 31-44.

The CFROI Life Cycle,” 1996, Journal of Investing, 5(2): 10-20. Exhibit 9 of this article is the first empirical assessment in the finance literature of firms’ implied cost of capital.

“Valuation: The Need for a Common Language,” January and April 1996, Director’s Monthly.

“Different Approaches to Measuring the Spread of Return on Capital in Relation to the Cost of Capital,” July/August 1996, Valuation Issues.

“CFROI Valuation Model,” December 1995, Valuation Issues.

“The Case for Cash Flow ROI in Linking Company Performance with Market Valuation,” November 1995, Valuation Issues.

“Structural Changes in Trading Stocks,” 1993, Journal of Portfolio Management 20(1): 19-27. The “Yellow Light” trading mechanism, described in this article, was later implemented by Pipeline Trading Systems.

“The SEER Mechanism: A Proposal for Shareholder Voting on Reinvestment of Corporate Cash Flow,” 1992, Journal of Applied Corporate Finance, 5(3).

“Make Shareholders a Partner in the Dividend Payout Decision,” 1987, Midland Corporate Finance Journal, 5(2): 39-45.

“Economics in Your Interest,” November 1984, AIER Economic Education Bulletin.




"Operation Warp Speed Could Be Applied to Treat Other Diseases," October 3, 2021 Washington Times

Promising New Legislation Could Transform the FDA’s Drug Approval Process: Leading to Better Treatments and Lower Prices,” June 10, 2021, FEE

In Defense of Free To Choose Medicine,” September 21, 2017, FEE

Trump’s FDA Pick Should Let Patients Be Free To Choose,” March 18, 2017, FEE

In Health Care, Freedom Is the Only Way Forward,” August 6, 2016, FEE

The Pathway to Faster Cures,” May 25, 2015, FEE

The Hill op-ed: “Seniors suffer the most from antiquated FDA approval process

Science on FDA Liberalization: A Response to the Status Quo Process for Medical Treatments,” 2020, Econ Journal Watch, 17(1): 90-96.

Free To Choose Medicine: Better Drugs Sooner at Lower Cost, 2018, 3rd edition,
Arlington Heights, IL: Heartland Institute. Click here for endorsements and here for a book review in the International Journal of Pluralism and Economic Education and here for a book review in CATO’s Regulation. Also, for a Foundation for Economic Education book review, click here. An early and highly condensed version of this book was translated into Japanese and played a significant role in Japan’s passage of FTCM legislation for regenerative medicine drugs. 

“A Dual Track System to Give More-rapid Access to New Drugs: Applying a Systems Mindset to the U.S. Food and Drug Administration (FDA),” 2009 Medical Hypotheses 72: 116-120.

Free To Choose Medicine,” with Greg Conko, 2013, Engage, October 14(3).

“A Clinical Trial for the Food and Drug Administration’s Clinical Trial Process,” 2005, Cancer, Biotherapy & Radiopharmaceuticals 20(6): 569-578.

Breaking the FDA Monopoly,” 2004, Regulation, Summer 27(2): 66-66.




Reconstructing Your Worldview: The Four Core Beliefs You Need to Solve Complex Business Problems. 2014, Naperville, Il: Learning What Works. Click here for endorsements. Click here for an example of classroom use and here for a book review. 

Management’s Worldview: Four Critical Points about Reality, Language, and Knowledge Building,” 2012, Journal of Organizational Computing and Electronic Commerce 22(4): 334-346. A corporate governance expert posted a review of this article, click here

A Transactional Approach to Economic Research,” 1991, Journal of Socio-Economics 20(1): 57-71. Click here for details about Milton Friedman’s response to a section of this article which was highly critical of his methodology of positive economics.




“Fortress frame CNG vehicle,” 1994, International Journal of Vehicle Design 15(1/2). A novel vehicle design would increase the weight and strength of a vehicle’s frame while using the frame to serve as a storage tank for compressed natural gas.

Click here for a Foreword I wrote for Beyond Earnings: A User’s Guide to Excess Return Models and the HOLT CFROI Framework, 2008, David Holland and Tom Larsen.




ESG Metrics and the Purpose of the Firm,” 18 February 2021, Real Clear Markets.

President Trump’s FDA nominee could mean better drugs sooner at lower cost,” 14 March 2017, The Hill.

In Health Care, Freedom Is the Only Way Forward,” 6 August 2016, Foundation for Economic Education.

Rekindling the Unappreciated Spirit of Capitalism, One Company at a Time,” 15 July 2016, Investor’s Business Daily.

The Pathway to Faster Cures,” 25 May, 2015, Foundation for Economic Education.

Tomorrow’s Cures Today: Let’s liberate medicine in America. Here’s our vision of health for the 21st Century,” 1 May 2015, Fox News.

Give The FDA Some Competition With Free To Choose Medicine,” with Vernon Smith, 1 December 2015, Forbes.

Economic Rewards of Dual Tracking,” January 2008, Heartland’s Health Care News.

The A. A. Smith House,” December 2006, describes the historical significance of my family’s late 1800s Victorian home.

Putting Drugs on a Faster Track,” 2 September 2004, Chicago Tribune.   

Give Small Investors an Alternative to Nasdaq,” January 16, 1995, Wall Street Journal.

“High trading costs’ harm to small companies,” July 1994, Pensions & Investments.

“Competition for Wall Street Means Economic Growth for Main Street,” September 1994, Heartland Perspective.

“Bush’s mistaken way to cut capital-gains tax,” October 1990, Pensions & Investments.




11/19/2021 Ten Foundational Ideas about Business Education: PowerPoint Presentation

12/14/2020 The Pragmatic Theory of the Firm

12/14/2020 The Pragmatic Theory of the Firm: PowerPoint Presentation

1/5/2018 Value Creation Thinking: PowerPoint Presentation

4/19/2011 Management’s Knowing Process and the Theory of Constraints

3/14/2010 Wealth Creation: PowerPoint Presentation of the Firms’ Competitive Life-cycle Framework

3/18/2017 Ten Important Ideas About Value Creation: PowerPoint Presentation

2/13/2007 For Better Corporate Governance, the Shareholder Value Review

7/28/2008 Applying a Systems Mindset to Stock Valuation

1/1/2013 Management’s Worldview: Four Critical Points About Reality, Language, And Knowledge

6/30/2016 Value Creation Thinking: Life-cycle Reviews (Presentations Slides)

1/11/2018 The Root Cause of Competitive Advantage: PowerPoint Presentation

3/13/2008 Guidepost to Wealth Creation: Value-Relevant Track Records

9/11/2017 The Purpose of the Firm, Valuation, and the Management of Intangibles

7/28/2013 Shared Value for Patients and Pharmaceutical Companies

7/23/2004 Breaking the FDA Monopoly

7/11/2018 Management’s Key Responsibility

9/19/2017 Free To Choose Medicine: PowerPoint Presentation

1/6/2018 The Pivotal Role of Worldviews in Building Knowledge