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Merton Miller

33quotes

Merton Miller


Full Name and Common Aliases


Merton Howard Miller was an American economist who is widely known for his contributions to the field of corporate finance.

Birth and Death Dates


Merton Miller was born on May 6, 1923, in Boston, Massachusetts. He passed away on June 3, 2000.

Nationality and Profession(s)


Miller was an American economist with a focus on corporate finance. His work spanned academia, research, and policy-making, earning him numerous accolades.

Early Life and Background


Merton Miller grew up in Boston, Massachusetts, where he developed an interest in economics at an early age. He attended Phillips Exeter Academy before heading to Princeton University for his undergraduate studies. After serving in the United States Navy during World War II, Miller returned to academia, earning his Ph.D. in Economics from Harvard University.

Major Accomplishments


Miller made significant contributions to various areas of economics and finance. His work focused on corporate governance, capital structure, and dividend policy. He was awarded the Nobel Memorial Prize in Economic Sciences in 1990 for his theory of optimal capital structure, which challenged traditional views on corporate behavior and investor expectations.

Notable Works or Actions


Miller's notable works include his research on "Agency Costs" with Daniel Fischel, where they explored the tension between management interests and shareholder interests. Another significant contribution was his work on dividend policy, which he found to be more complex than previously thought, involving considerations beyond simple tax implications.

Impact and Legacy


Merton Miller's work has had a lasting impact on the field of finance. His research challenged conventional wisdom and paved the way for further exploration into corporate governance issues. He was also instrumental in shaping financial regulations through his participation in government commissions and policy discussions.

Why They Are Widely Quoted or Remembered


Miller is widely quoted and remembered for several reasons:

Innovative Research: His work on agency costs, dividend policy, and optimal capital structure expanded our understanding of corporate behavior and investor expectations.
 Policy Influence: As a member of the President's Commission to Study Capital Budgeting in 1961, Miller contributed to shaping financial regulations that still influence contemporary business practices.
* Nobel Prize Winner: His Nobel recognition solidified his status as a leading figure in the field of economics and finance.

Quotes by Merton Miller

Junk bonds prove there’s nothing magical in a Aaa bond rating.
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Junk bonds prove there’s nothing magical in a Aaa bond rating.
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Everyone recognizes that’s a joke because obviously the number and shape of the pieces doesn’t affect the size of the pizza. And similarly, the stocks, bonds, warrants, etc., issued don’t affect the aggregate value of the firm.
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Everyone recognizes that’s a joke because obviously the number and shape of the pieces doesn’t affect the size of the pizza. And similarly, the stocks, bonds, warrants, etc., issued don’t affect the aggregate value of the firm.
MM
Most people might just as well buy a share of the whole market, which pools all the information, than delude themselves into thinking they know something the market doesn’t.
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Most people might just as well buy a share of the whole market, which pools all the information, than delude themselves into thinking they know something the market doesn’t.
MM
I had some of the students in my finance class actually do some empirical work on capital structures, to see if we could find any obvious patterns in the data, but we couldn’t see any.
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I had some of the students in my finance class actually do some empirical work on capital structures, to see if we could find any obvious patterns in the data, but we couldn’t see any.
MM
To beat the market you’ll have to invest serious bucks to dig up information no one else has yet.
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To beat the market you’ll have to invest serious bucks to dig up information no one else has yet.
MM
To beat the market you'll have to invest serious bucks to dig up information no one else has yet.
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To beat the market you'll have to invest serious bucks to dig up information no one else has yet.
MM
#bucks
What counts is what you do with your money, not where it came from.
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What counts is what you do with your money, not where it came from.
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#money
Most people might just as well buy a share of the whole market, which pools all the information, than delude themselves into thinking they know something the market doesn't.
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Most people might just as well buy a share of the whole market, which pools all the information, than delude themselves into thinking they know something the market doesn't.
MM
#investing
... Any pension fund manager who doesn't have the vast majority-and I mean 70% or 80% of his or her portfolio-in passive investments is guilty of malfeasance, nonfeasance or some other kind of bad feasance!
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... Any pension fund manager who doesn't have the vast majority-and I mean 70% or 80% of his or her portfolio-in passive investments is guilty of malfeasance, nonfeasance or some other kind of bad feasance!
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#investing
Everybody has some information. The function of the markets is to aggregate that information, evaluate it and get it incorporated into prices.
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Everybody has some information. The function of the markets is to aggregate that information, evaluate it and get it incorporated into prices.
MM
#investing
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