Stewart Myers
Encyclopedia
Stewart Clay Myers is the Robert C. Merton
(1970) Professor of Financial Economics
at the MIT Sloan School of Management
.http://mitsloan.mit.edu/faculty/detail.php?in_spseqno=95&co_list=F He is notable for his work on capital structure and innovations in capital budgeting
and valuation, and has had a "remarkable influence" on both the theory and practice of corporate finance
. http://www3.interscience.wiley.com/journal/121572753/abstract?CRETRY=1&SRETRY=0 Myers, in fact, coined the term "real option
".
His contributions are seen as falling into three main categories:http://www3.interscience.wiley.com/journal/121572753/abstract?CRETRY=1&SRETRY=0
Recent projects include the valuation of investments in R&D, risk management, and the allocation of capital in diversified firms, and the theory of corporate governance.
He is the co-author with Richard A. Brealey
and Franklin Allen
of "Principles of Corporate Finance", a widely used and cited business school
textbook, now in its 10th edition. He is also the author of dozens of research articles. http://mitsloan.mit.edu/faculty/pdf/publist/myers-pub.pdf
He is currently a principal of economic consulting firm The Brattle Group
. http://www.brattle.com/Experts/ExpertDetail.asp?ExpertID=65&page=1 He is a past president of the American Finance Association
,http://www.afajof.org/association/fellows.asp a research associate of the National Bureau of Economic Research
,http://www.nber.org/people/stewart_myers and a director of the Cambridge Endowment for Research in Finance.
He holds a Ph.D.
and MBA from Stanford University
and an A.B. from Williams College
.http://investing.businessweek.com/businessweek/research/stocks/people/person.asp?personId=62697795&ticker=ETR:US&previousCapId=1046885&previousTitle=JI%20Ventures%2C%20Inc.
Robert C. Merton
Robert Carhart Merton is an American economist, Nobel laureate in Economics, and professor at the MIT Sloan School of Management.-Biography:...
(1970) Professor of Financial Economics
Financial economics
Financial Economics is the branch of economics concerned with "the allocation and deployment of economic resources, both spatially and across time, in an uncertain environment"....
at the MIT Sloan School of Management
MIT Sloan School of Management
The MIT Sloan School of Management is the business school of the Massachusetts Institute of Technology, in Cambridge, Massachusetts....
.http://mitsloan.mit.edu/faculty/detail.php?in_spseqno=95&co_list=F He is notable for his work on capital structure and innovations in capital budgeting
Capital budgeting
Capital budgeting is the planning process used to determine whether an organization's long term investments such as new machinery, replacement machinery, new plants, new products, and research development projects are worth pursuing...
and valuation, and has had a "remarkable influence" on both the theory and practice of corporate finance
Corporate finance
Corporate finance is the area of finance dealing with monetary decisions that business enterprises make and the tools and analysis used to make these decisions. The primary goal of corporate finance is to maximize shareholder value while managing the firm's financial risks...
. http://www3.interscience.wiley.com/journal/121572753/abstract?CRETRY=1&SRETRY=0 Myers, in fact, coined the term "real option
Real option
Real options valuation, also often termed Real options analysis, applies option valuation techniques to capital budgeting decisions. A real option itself, is the right — but not the obligation — to undertake some business decision; typically the option to make, abandon, expand, or contract a...
".
His contributions are seen as falling into three main categories:http://www3.interscience.wiley.com/journal/121572753/abstract?CRETRY=1&SRETRY=0
- Work on capital structureCapital structureIn finance, capital structure refers to the way a corporation finances its assets through some combination of equity, debt, or hybrid securities. A firm's capital structure is then the composition or 'structure' of its liabilities. For example, a firm that sells $20 billion in equity and $80...
, focusing on "debt overhang" and "Pecking Order TheoryPecking Order TheoryIn the theory of firm's capital structure and financing decisions, the Pecking Order Theory or Pecking Order Model was first suggested by Donaldson in 1961 and it was modified by Stewart C. Myers and Nicolas Majluf in 1984...
". - Contributions to capital budgetingCapital budgetingCapital budgeting is the planning process used to determine whether an organization's long term investments such as new machinery, replacement machinery, new plants, new products, and research development projects are worth pursuing...
that complement his research on capital structure. He is notable for the adjusted present valueAdjusted present valueAdjusted Present Value is a business valuation method. APV is the net present value of a project if financed solely by ownership equity plus the present value of all the benefits of financing...
(or APV) approach as well as for recognizing the "option-like" character of many corporate assets. - Work on estimating fair rates of return for public utilities.
Recent projects include the valuation of investments in R&D, risk management, and the allocation of capital in diversified firms, and the theory of corporate governance.
He is the co-author with Richard A. Brealey
Richard A. Brealey
Richard A. Brealey is a British economist and author. He was formerly a special adviser to the Governor of the Bank of England and Visiting Professor of Finance and the Tokai Bank Professor of Finance at the London Business School.-Biography:...
and Franklin Allen
Franklin Allen
Franklin Allen is the Nippon Life Professor of Finance and Economics at the Wharton School of the University of Pennsylvania...
of "Principles of Corporate Finance", a widely used and cited business school
Business school
A business school is a university-level institution that confers degrees in Business Administration. It teaches topics such as accounting, administration, economics, entrepreneurship, finance, information systems, marketing, organizational behavior, public relations, strategy, human resource...
textbook, now in its 10th edition. He is also the author of dozens of research articles. http://mitsloan.mit.edu/faculty/pdf/publist/myers-pub.pdf
He is currently a principal of economic consulting firm The Brattle Group
The Brattle Group
The Brattle Group provides consulting services and expert testimony in economics, finance, and regulation to corporations, law firms, and public agencies...
. http://www.brattle.com/Experts/ExpertDetail.asp?ExpertID=65&page=1 He is a past president of the American Finance Association
American Finance Association
The American Finance Association is an academic organization whose focus is the study and promotion of knowledge of financial economics. It was formed in 1939...
,http://www.afajof.org/association/fellows.asp a research associate of the National Bureau of Economic Research
National Bureau of Economic Research
The National Bureau of Economic Research is an American private nonprofit research organization "committed to undertaking and disseminating unbiased economic research among public policymakers, business professionals, and the academic community." The NBER is well known for providing start and end...
,http://www.nber.org/people/stewart_myers and a director of the Cambridge Endowment for Research in Finance.
He holds a Ph.D.
Ph.D.
A Ph.D. is a Doctor of Philosophy, an academic degree.Ph.D. may also refer to:* Ph.D. , a 1980s British group*Piled Higher and Deeper, a web comic strip*PhD: Phantasy Degree, a Korean comic series* PhD Docbook renderer, an XML renderer...
and MBA from Stanford University
Stanford University
The Leland Stanford Junior University, commonly referred to as Stanford University or Stanford, is a private research university on an campus located near Palo Alto, California. It is situated in the northwestern Santa Clara Valley on the San Francisco Peninsula, approximately northwest of San...
and an A.B. from Williams College
Williams College
Williams College is a private liberal arts college located in Williamstown, Massachusetts, United States. It was established in 1793 with funds from the estate of Ephraim Williams. Originally a men's college, Williams became co-educational in 1970. Fraternities were also phased out during this...
.http://investing.businessweek.com/businessweek/research/stocks/people/person.asp?personId=62697795&ticker=ETR:US&previousCapId=1046885&previousTitle=JI%20Ventures%2C%20Inc.