Miller, Merton

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Miller, Merton

Nobel Laureate and coauthor of the famous Miller-Modigliani theorems. Finance professor at the University of Chicago.

Miller, Merton

A financial academic and theoretician. Along with Franco Modigliani, he developed the Modigliani-Miller theory, which states that if financial markets are perfectly efficient, then how a company is a financed has no bearing on its performance. That is, without taxes, asymmetric information, or government and other unnecessary fees, a company is equally likely to perform well regardless of whether it is financed by equity issues, debt, or something else. It also states that a company's dividend policy is irrelevant in these circumstances. Miller's theory has been used to justify the increased use of leverage since the 1980s. He was awarded the Nobel Prize in Economics (along with Harry Markowitz and William Sharpe) in 1990 for this and other contributions. Critics contend his theory has led to needless risk-taking. He was born in Boston in 1923 and died in Chicago in 2000.
References in periodicals archive ?
Hence, we are tremendously motivated to expound the life of Merton Miller, though, maybe, we would add nothing new to theory, but speaking again and again about him turns out to be extremely exciting.
We had Milton Friedman, Merton Miller, George Stigler, Myron Scholes and several other professors who were all Nobel Prize winners.
In addition to its more recent involvement in selecting the recipient of the GAIM Global Financial Policy Award, the IAFE also awards the prestigious annual Financial Engineer of the Year (FEOY) award, whose recipients include, among other leading academics and practitioners, Nobel Laureates Robert Merton and Myron Scholes, as well as the late Fischer Black and Merton Miller.
What matters for firm value is expected earnings and business risk, as Franco Modigliani and Merton Miller demonstrated in their classic 1961 paper.
Harry Markowitz and Merton Miller developed MPT in 1952 and William Sharpe expanded on it later; the three won the 1990 Nobel Prize for Economics for their contribution to investment methodology.
Most of us learned first about how much finance owes to Merton Miller in our Ph.
The study by corporate finance expert Merton Miller of the University of Chicago, released Thursday, was commissioned by Merrill Lynch & Co.
This framework is based on principles developed by Nobel Laureates Franco Modigliani and Merton Miller and formalizes a long standing relation between the principals of Ativo Research and Trust & Fiduciary Management Services.
Twenty years after their inception, the 1992 Nobel Laureate in economics, Merton Miller, named financial futures as "the most significant innovation in the past two decades.
The work of two Nobel laureates, Merton Miller and Ronald Coase, in identifying the inefficiencies that stem from regulatory efforts, should have taught us the value of that objective.
Professor Fama has published approximately 100 academic research papers and two textbooks including The Theory of Finance, which was jointly authored with Merton Miller.
Professor Sharpe, along with the late Merton Miller and Harry Markowitz, shared the 1990 Nobel Prize in economics for groundbreaking work in the area of financial economic theory and helped usher in the modern era of risk management.