Cloth $95.00 ISBN: 9780226527475 Published June 2002


Selected Works of Merton H. Miller: A Celebration of Markets

Volume 1: Finance

Merton H. Miller

Selected Works of Merton H. Miller: A Celebration of Markets

Merton H. Miller

Edited by Bruce D. Grundy
465 pages | 28 line drawings, 13 tables | 6 x 9 | © 2002
Cloth $95.00 ISBN: 9780226527475 Published June 2002
Widely regarded as one of the founders of modern corporate finance, Merton H. Miller was awarded a Nobel Prize in 1990 for his work in the theory of finance and financial economics. Selected Works of Merton H. Miller gathers together in two volumes a selection of Miller's most influential contributions over more than fifty years of active research. A common theme running throughout both volumes is Miller's conviction about the utility of market-based approaches to topics as diverse as dividend policy, bank regulation, the structure of securities markets, and competition between research universities and teaching colleges.

Miller was perhaps best known for a series of highly influential papers he cowrote in the 1950s and 1960s with fellow Nobel laureate Franco Modigliani that advanced a set of capital structure theorems later dubbed the "M and M propositions." In brief, the M and M propositions state that the actions of investors, firms, and capital markets will cause the market value of a firm to be independent of its capital structure. In other words, a corporation's value depends on its investments in people, ideas, and physical capital goods and not on the mix of bonds, stocks, and other securities used to finance the investments. Four of these papers are reprinted here, together with important later work by Miller in macroeconomics, corporate capital structure, management science, asset pricing, and the economic and regulatory problems of the financial services industry.

Diverse and innovative, the papers in Selected Works of Merton H. Miller will interest students and practitioners of economics, finance, and business, as well as policymakers responsible for market regulation.
Volume 1: Finance
Foreword by Eugene F. Fama
Foreword by George M. Constantinides
Part 1 - The Classics
1. The Cost of Capital, Corporation Finance and the Theory of Investment (with Franco Modigliani)
2. Dividend Policy, Growth and the Valuation of Shares (with Franco Modigliani)
3. Corporate Income Taxes and the Cost of Capital: A Correction (with Franco Modigliani)
4. Reply to Heins and Sprenkle (with Franco Modigliani)
5. Debt and Taxes
6. Leverage: Nobel Lecture, December 7, 1990
Part II - Corporate Decision Making: Financing, Investment and Incentives
7. Extension of the Model to Durable Commodities, Production, and Corporations, Chapter 2 of The Theory of Finance (with Eugene F. Fama)
8. Financing Decisions, Investment Decisions, and the Cost of Capital, Chapter 4 of The Theory of Finance (with Eugene F. Fama)
9. Application of Linear Programming to Financial Budgeting and the Costing of Funds (with A. Charnes and W. W. Cooper)
10. Executive Compensation, Taxes, and Incentives (with Myron S. Scholes)
11. Is American Corporate Governance Fatally Flawed?
Part III - Distribution Policy in Competitive Markets
12. The Informational Content of Dividends
13. Dividends and Taxes (with Myron S. Scholes)
14. Dividends and Taxes: Some Empirical Evidence (with Myron S. Scholes)
15. Dividend Policy under Asymmetric Information (with Kevin Rock)
16. Behavioral Rationality in Finance: The Case of Dividends
Author Index
Subject Index
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