Investment Theory

A Critical Review of Modigliani and Miller’s Theorem of Capital Structure ArXiv ID: ssrn-2623543 “View on arXiv” Authors: Unknown Abstract In their study “The cost of capital, corporation finance and the theory of investment” (1958) laureates of Nobel Price Nobel Franco Modigliani and Merton Miller Keywords: Modigliani-Miller theorem, cost of capital, corporate finance, capital structure, investment theory, Corporate Equity Complexity vs Empirical Score Math Complexity: 2.5/10 Empirical Rigor: 1.5/10 Quadrant: Philosophers Why: The paper is a literature review and theoretical critique of a well-established financial theorem, featuring only basic algebraic equations without derivations or simulations. It lacks any backtesting, data analysis, or implementation details, focusing entirely on conceptual discussion rather than empirical validation. flowchart TD A["Research Goal<br/>Analyze Modigliani-Miller Theorem<br/>& Capital Structure Irrelevance"] --> B["Methodology<br/>Comparative Analysis & Simulation"] B --> C["Data/Inputs<br/>Historical Financial Ratios<br/>Tax Rates & Market Conditions"] C --> D["Computational Process<br/>Apply M-M Propositions I & II<br/>Calculate Cost of Capital & WACC"] D --> E["Key Findings/Outcomes<br/>1. Capital Structure Irrelevance<br/>2. Impact of Taxes on Value<br/>3. Role of Market Efficiency"]

My Life in Finance ArXiv ID: ssrn-1981858 “View on arXiv” Authors: Unknown Abstract I was invited by the editors to contribute a professional autobiography to the Annual Review of Financial Economics. I focus on what I think is my best stuff. R Keywords: financial economics, academic research, investment theory, career retrospective, Academic Research Complexity vs Empirical Score Math Complexity: 0.0/10 Empirical Rigor: 0.0/10 Quadrant: Philosophers Why: The paper is a professional autobiography with no mathematical formulas, code, backtests, or empirical data, focusing instead on personal narrative and career highlights. flowchart TD A["Research Goal: Document career contributions<br/>in financial economics"] --> B["Methodology: Selective retrospective analysis<br/>of published works"] B --> C["Data: Personal research portfolio<br/>and seminal papers"] C --> D["Computation: Critical synthesis &<br/>theoretical impact assessment"] D --> E{"Key Findings/Outcomes"} E --> F["Investment Theory Advances"] E --> G["Financial Economics Frameworks"] E --> H["Academic Career Insights"]

My Life inFinance ArXiv ID: ssrn-1553244 “View on arXiv” Authors: Unknown Abstract I was invited by the editors to contribute a professional autobiography for the Annual Review of Financial Economics. I focus on what I think is my best stuff. Keywords: financial economics, academic research, investment theory, career retrospective, Academic Research Complexity vs Empirical Score Math Complexity: 2.5/10 Empirical Rigor: 1.5/10 Quadrant: Philosophers Why: The text is a professional autobiography discussing historical research and theoretical concepts like market efficiency and the joint hypothesis problem, with no mathematical formulas, code, or detailed empirical data presentation. flowchart TD A["Research Goal: Document key contributions to financial economics"] --> B["Key Methodology: Career retrospective analysis"] B --> C["Data/Inputs: Authored papers & career milestones"] C --> D["Computational Process: Synthesize & evaluate impact"] D --> E["Key Findings: Impact on investment theory & policy"]