Stewart Myers


Stewart Myers

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Stewart C. Myers is the Robert C. Merton (1970) Professor of Finance, Emeritus at the MIT Sloan School of Management. 

Myers is past President of the American Finance Association, a Research Associate at the National Bureau of Economic Research and a principal of the Brattle Group, Inc. His textbook Principles of Corporate Finance (12th ed., with Richard Brealey and Franklin Allen) is known as the “bible” of financial management. 

His research focuses on the valuation of real and financial assets, corporate finance, and financial aspects of government regulation of business. He introduced both the tradeoff and pecking order theories of capital structure, and was the first to recognize the importance of real options in corporate finance. 

Myers is the author of influential research papers on many topics, including adjusted present value (APV), rate of return regulation, capital allocation and risk management in banking and insurance, real options, payout policy, and moral hazard and information issues in financing decisions. He has served as a director of Entergy Corporation and CAT Ltd. and as a manager of the Cambridge Endowment for Research in Finance. 

He holds an AB from Williams College and an MBA and a PhD from Stanford University.


Current Research Focus: Myers's current research focuses on three areas: (1) Theoretical models of the long-run dynamics of capital investment, payout and borrowing decisions by mature public corporations. The models have important implications for corporate governance as well as corporate finance generally, (2) Efficient allocation of risk capital by banks and other financial firms, and (3) Valuation of real options, accounting for option leverage, taxes and implications for capital structure.


Stewart Myers wins Onassis Prize for Finance

Stew Myers is a co-winner of the 2009 III Edition of the Jaime Fernández de Araoz Corporate Finance Award

Stew Myers has been appointed as a Research Fellow of the European Corporate Governance Institute (ECGI)


"A Discounted Cash Flow Approach to Property-Liability Insurance Rate Regulation."

Myers, Stewart, and Richard A. Cohn. In Fair Rate of Return in Property Liability Insurance, 55-78. Norwell, MA: Kluwer-Nijhoff Publishing Co., 1987.

"A Life Cycle Model of Pharmaceutical R&D."

Myers, Stewart, and Christopher D. Howe, Working Paper. 1997.

"A Lintner Model of Dividends and Managerial Rents."

Lambrecht, Bart M., and Stewart Myers. Journal of Finance Vol. 67, No. 5 (2012): 1761-1810.

"A Note on Linear Programming and Capital Budgeting."

Myers, Stewart. Journal of Finance Vol. 27, No. 1 (1972): 89-92.

"A Programming Approach to Corporate Financial Management."

Myers, Stewart, and Gerald A. Pogue. Journal of Finance Vol. 29, No. 2 (1974): 579–599.

"A Simple Model of Firm Behavior Under Regulation and Uncertainty."

Myers, Stewart. Bell Journal of Economics and Management Science Vol. 4, No. 1 (1973): 304-315.

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