Stewart Myers

Robert C. Merton (1970) Professor of Financial Economics
Professor of Finance

Biography | Selected Publications

“A Theory of Risk Capital,” Stewart C. Myers and James A. Read, Jr. Journal of Financial Economics, forthcoming

Fundamentals of Corporate Finance. Myers, Stewart, R. A. Brealey, S. C. Myers, A. Marcus, E. M. Haynes and D. Mitra. New York: McGraw-Hill and McGraw-Hill Irwin, 1995, 2nd Ed. 1999, 3rd Ed. 2001, 4th Ed. 2004, 5th Ed. 2007, 6th Ed. 2009, 7th Ed. 2012, 8th Ed. 2015.  Translated into several languages.

"A Lintner Model of Dividends and Managerial Rents," B.L. Lambrecht and S.C. Myers. Journal of Finance, Vol 67, No. 5: 1761–1810 (2012)

“The Internal Governance of Firms,” Myers, Stewart, with V. Acharya and R. Rajan. Journal of Finance, 66(3): 689–720, June 2011.

“Debt and Managerial Rents in a Real-Options Model of the Firm,” Myers, Stewart, with B. Lambrecht. Journal of Financial Economics, 89(2) August 2008, 209–231. (Lead article)

Principles of Corporate Finance, New York: McGraw-Hill and McGraw-Hill Irwin, 1981; 2nd Ed. 1984; 3rd Ed. 1988; 4th Ed. 1991; 5th Ed. 1996; 6th Ed. 2000; 7th Ed., 2003 (1st through 7th editions with R. A. Brealey); 8th Ed., 2006, 9th Ed., 2008, 10th Ed. 2010, 11th Ed. 2014 (with R. A. Brealey and F. Allen); Canadian Edition (with R. A. Brealey, G. Sick and R. Whaley), 1988; 2nd Ed. (with R. A. Brealey, G. Sick and R Giammarino), 1992. Translated into many languages, including Czech, French, Hungarian, Indonesian, Italian, Japanese, Portuguese, Russian and Spanish.

“A Theory of Takeovers and Disinvestment,” Lambrecht, B., and S. C. Myers, Journal of Finance, 62(7) April 2007, 809–845.

“Academic Capital Structure and planning,” Myers, Stewart, with William F. Massey. Futures Forum, Forum for the Future of Higher Education, 2007.

“R2 Around the World: New Theory and New Tests,” Myers, S., and L. Jin. Journal of Financial Economics, 79(2) February 2006. [FAME (Geneva) 2005 research prize. Roger Murray Prize, Q-Group, 2006.]

“Financial Puzzles,” Myers, Stewart. Journal of Applied Finance, Vol. 16, No. 1. Spring-Summer 2006, Fall-Winter 2006, Spring-Summer 2007, Fall-Winter 2007, Fall-Winter 2008, 2009 (a series).

Capital Investment and Valuation, Myers, S., with R. A. Brealey and The Brattle Group, Inc., New York: McGraw-Hill Irwin, 2003.

Financing and Risk Management (with R. A. Brealey and The Brattle Group, Inc.), New York: McGraw-Hill Irwin, 2003.

“Financing of Corporations,” Myers, Stewart, in G. M. Constantinedes, M. Harris and R. M. Stulz, eds., Handbook of the Economics of Finance, Amsterdam: Elsevier North Holland, 2003.

“R & D Accounting and the Tradeoff Between Relevance and Objectivity: A Pharmaceutical Industry Simulation,” P. Healy, S. Myers, and C. Howe, Journal of Accounting Research, 40(3): 677 - 710. (2002)

“Regulating U.S. Railroads: The Effects of Sunk Costs and Asymmetric Risk,” Myers, S., with J. Hausman, Journal of Regulatory Economics, 22(3) November 2002, 287-310.

“Capital Structure,” Myers, S. Journal of Economic Perspectives, Vol. 15 No. 2, June 2001, 81-102

“Capital Allocation for Insurance Companies,” S. Myers, with J. A. Read, Jr., Journal of Risk and Insurance, 68(4), Dec. 2001.  (Lead article)  [Awards from the Casualty Actuarial Society and ACIA (Robert C. Witt Research award) for best paper published in the Journal of Risk and Insurance for 2002.]

“Outside Equity Financing,” Myers, S. Journal of Finance, Vol.55, No.3, June 2000. (Lead article)

“Testing Static Tradeoff vs. Pecking Order Theories of Capital Structure” Myers, S., with L. Shyam-Sunder, Journal of Financial Economics, 51(2) February 1999: 219–244.

“Financial Architecture,” Myers, S. European Financial Management, 5(2) 1999.  [Q-Group Best paper award, 2001.] (1999)

Fundamentals of Corporate Finance. Myers, Stewart C. Boston, MA: Irwin/McGraw-Hill, 1999.

“The Paradox of Liquidity,” Myers, S., with R. Rajan. Quarterly Journal of Economics, 113(3), August 1998: 733-771.

“A Life Cycle Model of Pharmaceutical R&D,” Myers, S., with C. Howe, MIT Program on the Pharmaceutical Industry, April 1997.

“Fischer Black’s Contributions to Corporate Finance,” Myers, S. Financial Management, Vol. 25, No. 4, Winter 1996. Also published in B.N. Lehmann, ed., The Legacy of Fischer Black, Oxford University Press, 2005.

“Measuring Pharmaceutical Industry Risk and the Cost of Capital,” Myers, S., with L. Shyam Sunder, in Competitive Strategies in the Pharmaceutical Industry, Robert B. Helms, ed., American Enterprise Institute, 1996.

“Discounted Cash Flow Estimates of the Cost of Equity Capital,” Myers, S., with L. S. Borucki, Financial Markets, Institutions and Investments, August 1994.

Regulatory Risk: Economic Principles and Applications to Natural Gas Pipelines and Other Industries. Kolbe A.L., Tye W.B., Myers S.C., Boston: Kluwer Academic Publishers, 1993.

“The Cost of Capital,” Myers, S., in The New Palgrave Dictionary of Money and Finance, P. Newman, et al., eds., London, Macmillan, 1992.

“Merton H. Miller’s Contributions to Financial Economics,” Myers, S. Scandinavian Journal of Economics, 93(1), 1991.

“Abandonment Value and Project Life,” Myers, S., with S. Majd, in F. Fabozzi, ed., Advances in Futures and Options Research, v. 4, Greenwich CT: JAI Press Inc., 1990.

Frontiers of Finance: The Batterymarch Fellowship Papers. Myers, S., and D. H. Miller, eds, Cambridge, MA: Basil Blackwell, 1990.

“Still Searching for Optimal Capital Structure,” Myers, S., in R. W. Kopke and E. S. Rosengren, eds., Are the Distinctions Between Debt and Equity Disappearing?, Federal Reserve Bank of Boston, 1989.

“Fuzzy Efficiency,” Myers, S. Institutional Investor, December 1988.

“Notes on an Expert System for Capital Budgeting,” Myers, S. Financial Management, Vol. 17, No. 3. Autumn 1988, 23-31.

“A Discounted Cash Flow Approach to Property-Liability Insurance Rate Regulation,” Myers, Stewart, with Richard Cohn, in J. D. Cummins and S. Harrington, eds., Fair Rate of Return in Property Liability Insurance, Norwell, MA: Kluwer-Nijhoff Publishing Co., 1987.

“Tax Asymmetries and Corporate Income Tax Reform,” Myers, S., with S. Majd, in M. Feldstein, ed., Effects of Taxation on Capital Accumulation, Chicago: University of Chicago Press, 1987.

“Capital Stocks and Investment Flows in the U. S. Economy: The Effects of Economic Pricing in the Electric and Gas Utilities: Comment,” S. Myers. Resources and Energy, 7(1): 141-144, 1985.

“Inflation and Rate of Return Regulation,” Myers, S., with A. L. Kolbe and W. B. Tye, in T. E. Keeler, ed., Research in Transportation Economics, v. 2, Greenwich, CT: JAI Press, Inc., 1985.

“Corporate Financing and Investment Decisions When Firms Have Information That Investors Do Not Have,” Myers, S., with N. Majluf. Journal of Financial Economics, 13(2) June 1984, 187-221.

“Finance Theory and Financial Strategy,” Myers, S. Interfaces, 14(1), January-February 1984, 126 - 137. Reprinted in A.C. Hax, ed., Readings on Strategic Management, Cambridge, MA: Ballinger, 1984.

“Regulation and Capital Formation in the Oil Pipeline Industry,” Myers, S., with A. L. Kolbe and W. B. Tye, Transportation Journal, Vol. 23, No. 4, Summer 1984, 25-49

“Trends in Corporate Profitability and Capital Costs in the United States,” Myers, S., with D. M. Holland, in D. M. Holland, ed., Measuring Profitability and Capital Costs, Lexington, MA: Lexington Books, 1984.

“The Evaluation of a Merger Target,” Myers, S. Midland Corporate Finance Journal, Winter 1983.

“The Search for Optimal Capital Structure,” Myers, S. Midland Corporate Finance Journal, Spring 1983.

“Profitability and Capital Costs for Manufacturing Corporations and All Nonfinancial Corporations,” Myers, S., with D. M. Holland, American Economic Review, Vol. 70, No. 2, May 1980, 320-325

“Trends in Corporate Profitability and Capital Costs,” Myers, S., with D. M. Holland, in R. Lindsay, ed., The Nation's Capital Needs: Three Studies, Washington, D. C.: Committee on Economic Development, 1979.

“On the Use of Modern Portfolio Theory in Public Utility Rate Cases: A Comment,” Myers, S. Financial Management, Vol. 7, No. 3, September 1978, 66-68.

“Determinants of Corporate Borrowing,” Myers, S. Journal of Financial Economics, 5(2) November 1977, 147–175.

“Capital Budgeting and the Capital Asset Pricing Model: Good News and Bad News,” Myers, S., with S. M. Turnbull, Journal of Finance, Vol. 32, No. 2, May 1977, 321-333

“Valuation of Financial Lease Contracts,” Myers, S., with D. A. Dill and A. J. Bautista. Journal of Finance, Vol. 31, No. 3, June 1976, 799-819

Modern Developments in Financial Management. Myers, S., (ed.), New York: Praeger Publishing Co., 1976.

“The Relation Between Real and Financial Measures of Risk and Return,” Myers, S., in J. M. Bicksler and I. Friend, eds., Studies in Risk and Return, Cambridge, MA: Ballinger, 1976.

“A Programming Approach to Corporate Financial Management,” Myers, S., with G. A. Pogue, Journal of Finance, 29(2) May 1974, 579–599.

“Interactions of Corporate Financing and Investment Decisions: Implications for Capital Budgeting,” Myers, S. Journal of Finance, Vol. 29, No. 1, March 1974, 1-25. (Lead article)

“A Simple Model of Firm Behavior Under Regulation and Uncertainty,” Myers, S. Bell Journal of Economics and Management Science, 4(1) Spring 1973, 304-315.

“On Public Utility Regulation Under Uncertainty,” Myers, S., in R. H. Howard, ed., Risk and Regulated Firms, East Lansing: Michigan State University Public Utilities Papers, 1973.

“A Note on Linear Programming and Capital Budgeting,” Myers, S. Journal of Finance, 27(1) March 1972, 89-92.

“Application of Finance Theory to Public Utility Rate Cases,” Myers, S. Bell Journal of Economics and Management Science, Vol. 3, No. 1, Spring 1972. 58-97.

“On the Use of ß in Regulatory Proceedings,” Myers, S. Bell Journal of Economics and Management Science, 3(2) Autumn 1972, 612-621.

“A Time-State-Preference Model of Security Valuation,” Myers, S. Journal of Financial and Quantitative Analysis, Vol. 3, No. 1, March 1968, 1-33.

“Procedures for Capital Budgeting Under Uncertainty,” Myers, S. Industrial Management Review, Spring 1968.

“Valuation Under Uncertainty: Comment," Myers, S., with A. A. Robichek. Journal of Financial and Quantitative Analysis, Vol. 3, No. 4, December 1968, 479-483.

“Taxes, Corporate Financial Policy and the Return to Investors: Comment,” Myers, S., National Tax Journal, Vol. 20, No. 4, December 1967, 455-462

“Conceptual Problems in the Use of Risk-Adjusted Discount Rates,” Myers, S., with A. A. Robichek. Journal of Finance, Vol. 21, No. 4, December 1966, 727-730.

“Problems in the Theory of Optimal Capital Structure,” Myers, S., with A. A. Robichek. Journal of Financial and Quantitative Analysis, Vol. 1, No. 2, June 1966, 1-35.

“Valuation of the Firm: Effects of Uncertainty in a Market Context,” Myers, S., with A. A. Robichek, Journal of Finance, 21(2) May 1966, 215–227

Optimal Financing Decisions. Myers, S., with A. A. Robichek. Englewood Cliffs, NJ: Prentice-Hall, Inc., 1965.

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Research Center(s)

General Expertise
Banking; Corporate finance; Finance; Insurance; Pharmaceuticals