The MIT Sloan Finance Group was founded in the late 1960s, long before many other business schools recognized finance as a distinct field of study. Thanks to the intellectual contributions of Paul A. Samuelson and the academic leadership of Professor William Pounds, who was dean of MIT Sloan from 1966 to 1980, the Finance Group coalesced into an influential collection of scholars with a common interest.
Members of this academic unit became the pioneers of modern finance, including Fischer Black, John Cox, Stewart Myers, and Nobel laureates Robert Merton, Franco Modigliani, and Myron Scholes. Many breakthroughs in financial economics are associated with MIT faculty, including: the Black-Scholes/Merton option-pricing model; the Modigliani-Miller theorems; continuous-time models of consumption and portfolio choice; applications of option-pricing theory to real investments, corporate finance, and other real options; equilibrium models of the term structure of interest rates; binomial option-pricing; and the risk-neutral pricing kernel for pricing derivative securities.
Today’s Finance Group is continuing this legacy of excellence and thought leadership. The finance research program spans all of the sub-disciplines that financial economics has produced over the last four decades, including: corporate finance; the implementation of financial asset pricing models; the pricing of options and other derivative securities; economics of organizations; and the characterization of financial risks.
Finance Group teaching activities include courses in the MBA program, the MIT Sloan Fellows Program for Senior Executives, the Master of Finance program, the undergraduate program, other executive education programs, and collaborations with organizations and universities around the world.