Merton H. Miller (1923–2000)

Bruce D. Grundy ()
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Bruce D. Grundy: College of Business & Economics, Australian National University

Chapter 26 in The Palgrave Companion to Chicago Economics, 2022, pp 653-677 from Springer

Abstract: Abstract The depth, breadth, and rigour of Merton Miller’s academic writings were accompanied by great warmth and humour. Merton communicated his often-challenging views via memorable phrases and anecdotes that have become part of the everyday language of the field. This chapter demonstrates how Merton’s admiration for markets provided the foundation for all his research. Jointly with Franco Modigliani, Merton created the famous M&M propositions on the value irrelevance of capital structure and dividend policy. He saw valuation effects induced by capital market imperfections and information asymmetries not as an invalidation of the propositions, but as a measure of the economic forces unleashed in capital markets if the repackaging of cash flows really did matter. He investigated financial innovation and securitisation as well as contributed to macroeconomics. Merton was awarded the 1990 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel.

Keywords: M&M propositions; Capital structure; Dividend policy; Financial innovation (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-01775-9_26

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DOI: 10.1007/978-3-031-01775-9_26

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