Table of Contents

Harnessing the Building Blocks of Economic Valuation: Exploring the Work of Nobel Laureate Robert C. Merton, PhD

Journal of Investment Consulting, Investment Management Consultants Association

Financial Theory Evolution

André Taue Saito, Fundação Escola de Comércio �lvares Penteado (FECAP), University of Sao Paulo (USP)
Jose Roberto Ferreira Savoia, FEA-USP
Rubens Fama, University of Sao Paulo


HISTORY OF FINANCE eJOURNAL

"Harnessing the Building Blocks of Economic Valuation: Exploring the Work of Nobel Laureate Robert C. Merton, PhD" Free Download
Journal of Investment Consulting, Vol. 14, No. 1, 5-16, 2013

JOURNAL OF INVESTMENT CONSULTING, Investment Management Consultants Association
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Using his background and skills in mathematics and engineering, Robert C. Merton expanded a new theory for options pricing into a fundamental valuation tool that became the standard in financial markets around the world, coining the term “the Black-Scholes model.� Together with the originators of the theory, Myron S. Scholes and Fischer Black, he laid the foundation that made possible the growth of the derivatives markets and provided the basis for the creation of new types of financial investments and development of economic valuation across other areas. In 1997, Dr. Merton’s work was recognized, along with that of Myron Scholes, with the Nobel Memorial Prize in Economic Sciences, which cited their pioneering work and its impact on efficient risk management. Over the years, Dr. Merton’s research has focused primarily on mathematical finance theory in the areas of capital markets and financial institutions.

In November 2012, Dr. Merton spoke with members of the Journal of Investment Consulting’s Editorial Advisory Board about the accomplishments and challenges that shaped his career, the changing environment for defined benefit and defined contribution plans, and major issues facing the industry in coming years.

"Financial Theory Evolution" Free Download
International Journal of Education and Research, Vol. 1, No. 4, April 2013

ANDRÉ TAUE SAITO, Fundação Escola de Comércio �lvares Penteado (FECAP), University of Sao Paulo (USP)
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JOSE ROBERTO FERREIRA SAVOIA, FEA-USP
RUBENS FAMA, University of Sao Paulo

This paper discusses the evolution of the financial theory from the early 20th to the early 21st century. The text deals with the financial implications of ethics, the impacts of social responsibility on corporate value, and the contributions of psychology and neuroscience to financial decisions. This paper seeks to contribute to a more in-depth understanding of the dynamics of the financial management and of its connection to economic cycles and financial crisis.

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About this eJournal

This eJournal distributes working papers and accepted paper abstracts covering all aspects of the historical nature of finance and investments. This eJournal promotes communication among researchers and practitioners interested in various elements of the history of financial thought. The purpose of this eJournal is to record the historical background of the discipline, document recent problems, and identify unresolved research questions in finance and investments.

This eJournal welcomes research with a focus on financial and investment history; different schools of the discipline (standard finance, behavioral finance); the origins of financial and investment topics; historical events and time periods; essays on historians, founders, and prolific authors in finance; contributions and biographies of financial researchers and innovators; the history of college and university finance programs; finance in ancient and medieval times; the history of finance and investments across different decades and centuries; the evolution of financial systems; financial history across different cultures, countries, and civilizations; the history of different financial planning services, financial markets, and investment products; papers on the role and influence of diverse disciplines within the historical development of finance; papers that advance the historical knowledge of the interaction of finance with other disciplines such as economics, accounting, and psychology; in-depth coverage of past, present and future subject matter in finance and investments; the historical theory of finance and investments; surveys and reviews of the academic literature; seminal research papers in the discipline; ideas for future research endeavors (emerging issues) in different branches of finance unexplored in the academic literature; debates and criticisms of different topics; extensive conceptual papers on financial and investment subject matter (concepts, themes. and theories); the history of specific academic journals; and papers on historical citation patterns and research productivity (contributions) in finance.

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FEN SUBJECT MATTER EJOURNALS

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Advisory Board

History of Finance eJournal

ROBERT D. ARNOTT
Chairman, Research Affiliates, LLC

VIPUL K. BANSAL
Associate Professor of Finance, St. John's University - Peter J. Tobin College of Business

HOWARD BODENHORN
Professor of Economics, Clemson University - College of Business and Behavioral Science, National Bureau of Economic Research (NBER)

ZVI BODIE
Professor of Finance and Economics, Boston University - Department of Finance & Economics

STEPHEN BUSER
Professor of Finance and Chair, Ohio State University (OSU) - Department of Finance

JOHN A. DOUKAS
William B. Spong, Jr., Chair of Finance, European Financial Management (EFM) Managing Editor, Old Dominion University - College of Business & Public Administration

FRANK J. FABOZZI
Professor of Finance, EDHEC Business School

EUGENE F. FAMA
Robert R. McCormick Distinguished Service Professor of Finance, University of Chicago - Booth School of Business (Finance Authors)

STEPHEN FIGLEWSKI
Professor of Finance, New York University - Stern School of Business

KENNETH R. FRENCH
Carl E. and Catherine M. Heidt Professor of Finance, Dartmouth College - Tuck School of Business, National Bureau of Economic Research (NBER)

WILLIAM N. GOETZMANN
Edwin J. Beinecke Professor of Finance & Management Studies; Director Yale - ICF, Yale School of Management - International Center for Finance, National Bureau of Economic Research (NBER)

PER H. HANSEN
Professor, Copenhagen Business School - Center for Business History

CAMPBELL R. HARVEY
J. Paul Sticht Professor of International Business, Duke University - Fuqua School of Business, National Bureau of Economic Research (NBER)

JEAN L. HECK
Associate Professor, St. Joseph's University - Haub School of Business

GEOFFREY JONES
Isidor Straus Professor of Business History, Harvard University - Entrepreneurial Management Unit

MEIR G. KOHN
Professor of Economics, Dartmouth College - Department of Economics

FRANCES C. LAWRENCE
Gerald Cire and Lena Grand Williams Alumni Professor, Louisiana State University - Department of Finance

ANNAMARIA LUSARDI
Professor of Economics, Dartmouth College - Department of Economics, National Bureau of Economic Research (NBER)

JOSEPHINE MALTBY
Professor of Accounting and Finance, University of York (UK) - The York Management School

HARRY MARKOWITZ
Research Professor and Nobel Laureate, University of California at San Diego

PERRY MEHRLING
Professor, Columbia University, Graduate School of Arts and Sciences, Department of Economics

ROWENA OLEGARIO
Assistant Professor of History, Vanderbilt University - Department of History

ANOOP RAI
Professor of Finance, Frank G. Zarb School of Business - Hofstra University

PAUL H. SCHULTZ
Professor, University of Notre Dame - Department of Finance

HERSH M. SHEFRIN
Mario L. Belotti Professor of Finance, Santa Clara University - Leavey School of Business, National Bureau of Economic Research (NBER)

MEIR STATMAN
Glenn Klimek Professor of Finance, Santa Clara University - Department of Finance, Visiting Professor of Finance, Tilburg University

RENE M. STULZ
Everett D. Reese Chair of Banking and Monetary Economics, Ohio State University (OSU) - Department of Finance, National Bureau of Economic Research (NBER), Fellow, European Corporate Governance Institute (ECGI)

RICHARD SYLLA
Henry Kaufman Professor of The History of Financial Institutions and Markets, Professor of Economics, New York University - Stern School of Business, Department of Economics

JEFFREY A. WURGLER
Nomura Professor of Finance, NYU Stern School of Business, National Bureau of Economic Research (NBER)

RASSOUL YAZDIPOUR
Professor of Finance, California State University, Fresno - Department of Finance and Business Law, Academy of Entrepreneurial Finance