A unified theory of the tunneling magnetoresistance (TMR) and of the b
allistic-current perpendicular-to-plane giant magnetoresistance (CPP G
MR) is developed. It is based on the Kubo-Landauer formula and fully r
ealistic tight-binding bands fitted to an ab initio band structure. Th
e theory is first applied to a single-orbital tight-binding model to i
nvestigate analytically a continuous transition from the CPP GMR of a
metallic system to the TMR of a tunneling junction. The transition tak
es place when either hopping of electrons between the ferromagnetic el
ectrodes is gradually turned off or the on-site potentials in the nonm
agnetic spacer are varied so that the Fermi level in the spacer moves
into the band gap. It is shown that the TMR approaches rapidly the sam
e saturation value when either the interelectrode hopping decreases or
the height of the insulating barrier increases. When the insulating b
arrier is high (band gap is large), the TMR depends only weakly on the
thickness of the insulating layer. However, when the band gap is smal
l compared to the conduction band width, the TMR decreases rapidly wit
h increasing thickness of the insulator. The numerical results for a C
o(001) junction, based on a fully realistic band structure of the Co e
lectrodes, show a very similar behavior. As the tight-binding hopping
matrix between the Co electrodes is gradually turned off, the TMR rati
o drops initially very rapidly from its value of 280% in the metallic
regime to about 40% but then stabilizes in the range 40-65%. This is i
n a very good agreement with the observed value of 40%. The polarizati
on of the current flowing across the Co junction in the metallic regim
e is negative (antiparallel to the magnetization) but becomes positive
in the tunneling regime. The sign of the calculated polarization is,
therefore, in agreement with the sign observed in all the experiments
on tunneling from transition-metal ferromagnets. [S0163-1829(97)01141-
7].