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.
El camino investigativo de la estructura de capital se inicio con el trabajo de Franco Modigliani y Merton Miller, en su articulo The cost of capital, corporation finance and the theory of investment, publicado en 1958.
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." Theories that were leading edge at that time, such as the Capital Asset Pricing Model and Modern Portfolio Theory, are now widely accepted and used today.
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.
In this keynote address to the 2000 Financial Management Association International Annual Meeting, I consider Merton Miller
's contributions to the field of finance.
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 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.