The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Scholes, Myron (Born 1941)

  • Toni M. Whited
Reference work entry


Myron Scholes is best known for his contribution to the derivation of the widely used Black–Scholes option pricing formula. His contributions to financial economics are not, however, limited to his research on option pricing. His other notable work includes seminal empirical tests of the capital asset pricing model, both theoretical and empirical examinations of the effects of dividend taxation on stock returns, and studies of tax issues relating to the cost of capital, capital structure, real estate values, the optimal liquidation of assets, and employee compensation.


Black, F Black–Scholes formula Capital asset pricing model Capital gains taxation Cost of capital Derivatives Dividend policy Employee stock ownership Human capital Liquidity premium Merton, R Option pricing options Scholes, M Stock returns Tax clienteles Taxation of capital income 

JEL Classification

This is a preview of subscription content, log in to check access.


  1. Bernstein, P.L. 1992. Capital ideas: The improbable origins of modern wall street. New York: Free Press.Google Scholar
  2. Black, F. 1989. How we came up with the option formula. Journal of Portfolio Management 15: 4–8.CrossRefGoogle Scholar
  3. Black, F., and M.S. Scholes. 1973. The pricing of options and corporate liabilities. Journal of Political Economy 81: 637–654.CrossRefGoogle Scholar
  4. Black, F., and M.S. Scholes. 1974. The effects of dividend yield and dividend policy on common stock prices and returns. Journal of Financial Economics 1: 1–22.CrossRefGoogle Scholar
  5. Black, F., M.C. Jensen, and M.S. Scholes. 1972. The capital asset pricing model: Some empirical tests. In Studies in the theory of capital markets, ed. M.C. Jensen. New York: Praeger.Google Scholar
  6. Bulow, J., and M. Scholes. 1983. Who owns the assets in a defined-benefit pension plan? In Financial aspects of the U.S. pension system, ed. Z. Bodie and J. Shoven. Chicago: University of Chicago Press.Google Scholar
  7. Miller, M., and M.S. Scholes. 1978. Dividends and taxes. Journal of Financial Economics 6: 333–364.CrossRefGoogle Scholar
  8. Miller, M., and M.S. Scholes. 1982a. Dividends and taxes: Some empirical results. Journal of Political Economy 90: 1118–1141.CrossRefGoogle Scholar
  9. Miller, M., and M.S. Scholes. 1982b. Executive compensation taxes and incentives. In Financial economics: Essays in honor of Paul Cootner, ed. K. Cootner and W. Sharpe. Englewood Cliffs: Prentice-Hall.Google Scholar
  10. Modigliani, F., and M.H. Miller. 1961. Dividend policy, growth and the valuation of shares. Journal of Business 34: 411–433.CrossRefGoogle Scholar
  11. Scholes, M.S. 1991. Stock and compensation. Journal of Finance 46: 803–823.Google Scholar
  12. Scholes, M.S., and J. Williams. 1977. Estimating betas from nonsynchronous data. Journal of Financial Economics 5: 309–327.CrossRefGoogle Scholar
  13. Scholes, M.S., and M.A. Wolfson. 1992. Taxes and business strategy: A planning approach. Englewood Cliffs: Prentice-Hall.Google Scholar
  14. Sprenkle, C.M. 1961. Warrant prices as indications of expectations. Yale Economic Essays 1: 179–232.Google Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Toni M. Whited
    • 1
  1. 1.