Finance Matters

Finance Matters

Finance Matters: The MIT Sloan Finance Group Blog

Finance Matters is the MIT Sloan Finance Group’s platform for sharing the latest on Finance faculty research, perspectives on financial industry news, MIT Sloan finance-related events, and will feature guest posts from our faculty, students, alumni, and affiliates.

Celebrating Black-Scholes-Merton

Posted by MIT Sloan Finance Group on October 24, 2013

Two Nobel Prize winners look back, and forward, as they reflect on their famous model “There are very few academic papers that you have a 40th anniversary for,” said MIT Sloan finance professor Stewart Myers. And yet, in honor of the anniversary of the Black-Scholes-Merton options pricing model, MIT Sloan did just that, with a two-day symposium celebrating the famous model and its widespread adoption and influence. Capping off a day of talks featuring finance professors including Deborah Lucas and…

Understanding the Role of Financial Constraints in the M&A Market

Posted by andreymalenko on September 11, 2013

A decision to expand by acquiring another business is one of the important decisions that a firm’s stakeholders make. Consider a mature firm, such as a big pharmaceutical company, contemplating an acquisition of a growing company, such as a small biotech firm. This decision has three aspects to it: (1) whether to initiate a bid for the target now or later; (2) how much to bid; and (3) what form should the bid take (cash, stock of the combined firm,…

Stimulus or austerity: an economist’s search for answers

Posted by MIT Sloan Finance Group on August 6, 2013

New finance faculty member Jonathan Parker examines the effects of 2008 stimulus payments In February 2008, Congress passed a $100 billion stimulus bill aimed at shoring up an an economy on the edge of freefall. The stimulus awarded a tax rebate of up to $600 per person or $1,200 per couple in hopes that recipients would spend the money and prop up the sagging economy. Jonathan Parker, one of MIT Sloan’s newest professors, said he believes the 2008 Economic Stimulus…

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