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 ?
Thaler once told me that Merton Miller, who won the economics Nobel in 1990 (he died in 2000), would not even make eye contact when passing him in the hallway at the University of Chicago.
Also, the Modigliani-Miller Theorem developed by Nobel prize-winning economists Franco Modigliani and Merton Miller "determined that payments of dividends has no impact on the value of a firm," says Cahn.
Teoria de la irrelevancia de Franco Modigliani y Merton Miller (1958), por ser considerada la precursora de la teoria financiera y la maxima exponente de la estructura de capital bajo supuestos de mercados perfectos.
This volume is concerned with the twentieth-century 'discoveries' of Harry Markowitz, Robert Merton, Merton Miller, Fischer Black, Myron Scholes and other legends of academic finance who converted 'a collection of anecdotes, rules of thumb, and manipulations of accounting data' into 'a rigorous economic theory subjected to scientific empirical examination' (Merton 1992, pp.
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.
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 late Merton Miller was once asked to explain his Nobel Prize-winning theories in a way readers would understand, even if they had no knowledge of economics.
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.