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Stewart Clay Myers ("Stew") is the Robert C. Merton (1970) Professor of Financial Economics at the MIT Sloan School of Management.[1] 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. [2]

His contributions are seen as falling into three main categories:[3]

• Work on capital structure, 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 (and in fact coined the term "real option").
• 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 the co-author with Richard A. Brealey and Franklin Allen of "Principles of Corporate Finance", a widely used and cited business school textbook, now in its 9th edition. He is also the author of dozens of research articles. [4]

He is a past president of the American Finance Association,[5] a research associate of the National Bureau of Economic Research,[6] and a director of the Cambridge Endowment for Research in Finance.

He holds a Ph.D. and MBA from Stanford University and an A.B. from Williams College.[7]

This author page uses material from the Wikipedia article "Stewart Myers", which is released under the Creative Commons Attribution-Share-Alike License 3.0