In the past two decades, we have observed a number of financial crises both in emerging and industrial economies. A crisis is often followed by a severe economic recession, and sometimes its effects are extremely devastating. This drastic nature of financial crises has been attracting active...

In a 40-plus year career notable for path-breaking work on capital structure and innovations in capital budgeting and valuation, MIT finance professor Stewart Myers has had a remarkable influence on both the theory and practice of corporate finance. In this article, two of his former students, a...