Stewart Clay Myers is the Robert C. Merton Professor of Financial Economics at the MIT Sloan School of Management. He is notable for his work on capital structure and innovations in capital budgeting and valuation, and has had a "remarkable influence" on both the theory and practice of

corporate finance Corporate finance is the area of finance that deals with the sources of funding, the capital structure of corporations, the actions that managers take to increase the Value investing, value of the firm to the shareholders, and the tools and anal ...

. Myers, in fact, coined the term " real option". He is the co-author with

Richard A. Brealey __NOTOC__ Richard A. Brealey is a British economist and author. He is an emeritus professor at the London Business School and a Fellow of the British Academy. He co-authored '' Principles of Corporate Finance'' with Stewart C. Myers and Frankli ...

and Franklin Allen of '' Principles of Corporate Finance'', a widely used and cited

business school A business school is a university-level institution that confers degrees in business administration or management. A business school may also be referred to as school of management, management school, school of business administration, o ...

textbook, now in its 11th edition. He is also the author of dozens of research articles.

Career

He holds a Ph.D. and MBA from

Stanford University Stanford University, officially Leland Stanford Junior University, is a private research university in Stanford, California. The campus occupies , among the largest in the United States, and enrolls over 17,000 students. Stanford is consider ...

and an A.B. from Williams College. He began teaching at MIT Sloan School of Management in 1966. His contributions are seen as falling into three main categories: *Work on

capital structure In corporate finance, capital structure refers to the mix of various forms of external funds, known as capital, used to finance a business. It consists of shareholders' equity, debt (borrowed funds), and preferred stock, and is detailed in the ...

, focusing on "debt overhang" and " pecking order theory". *Contributions to capital budgeting that complement his research on capital structure. He is notable for the adjusted present value (or APV) approach as well as for recognizing the "option-like" character of many corporate assets. *Work on estimating fair rates of return for public utilities. Recent projects include the valuation of investments in R&D, risk management, and the allocation of capital in diversified firms, and the theory of corporate governance. He is currently a principal of economic consulting firm

The Brattle Group The Brattle Group provides consulting services and expert testimony in economics, finance, and regulation to corporations, law firms, and public agencies. As of 2019, the company had offices in Boston, Brussels, Chicago, London, Madrid, New York ...

. He is a past president of the American Finance Association, a research associate of the National Bureau of Economic Research, and a director of the Cambridge Endowment for Research in Finance.

Works

*Stewart C. Myers (ed) ''Modern Developments in Financial Management'', Dryden Press, 1976, *Alexander A. Robichek, Stewart C. Myers, ''Optimal financing decisions'', Prentice-Hall, 1965 * *Richard A. Brealey, Stewart C. Myers, ''Capital Investment and Valuation'', McGraw Hill Professional, 2003,

References

External links

Stewart Myers - MIT Sloan Biography

Business Week Profile

Publication list

The Contributions of Stewart Myers to the Theory and Practice of Corporate Finance
'' Journal of Applied Corporate Finance'' {{DEFAULTSORT:Myers, Stewart Living people Financial economists American finance and investment writers American textbook writers American male non-fiction writers Williams College alumni Corporate finance theorists Real options MIT Sloan School of Management faculty Presidents of the American Finance Association Year of birth missing (living people)