Myron Scholes, Taxes and the Pricing of Options, The Journal of Finance, Vol. 31, No. 2, Papers and Proceedings of the Thirty-Fourth Annual Meeting of the American Finance Association Dallas, Texas December 28-30, 1975 (May, 1976), pp. 319-332

PUR 6403 Crisis and Risk Management focuses on practical applications of theory and research to identify and strategically manage issues and operational risks that can materially affect the continuity of global organizations. Emphasis is placed on preparing managers for ethical and effective risk and crisis communication, as well as the formulation of strategic crisis communication plans. Class information: PUR 6403 §1219 meets 8th-10th periods (3-6 p.m.) on Thursdays in Weimer 3020. Course goals: The goal of PUR 6403 is for students to understand and appreciate how issues impact organizational continuity, how issues and operational risks are strategically managed and crises averted, and the importance of ethical, effective risk and crisis communication.

Prize Lecture to the memory of Alfred Nobel, December 9, 1997

Compensation planning within firms creates important corporate financial problems. Theoretical models and empirical tests of hypotheses in this area should play a much larger role than currently in the modern theory of corporate finance. Employees fund a large proportion of their firm's activities through deferred compensation arrangements tied to the performance of their company. These arrangements are generally put in place for incentive reasons, to align the interests of employees more closely with those of shareholders. Moreover, tax rules encourage or discourage these arrangements at various times. Currently, both tax rules and incentive considerations encourage stock buyback programs to fund deferred compensation arrangements. Prior to the 1980s, however, tax rules favored funding in other than company stock, implying that employees likely held company stock for incentive and not for tax reasons during this time period.

Compensation planning within firms creates important corporate financial problems. Theoretical models and empirical tests of hypotheses in this area should play a much larger role than currently in the modern theory of corporate finance. Employees fund a large proportion of their firm's activities through deferred compensation arrangements tied to the performance of their company. These arrangements are generally put in place for incentive reasons, to align the interests of employees more closely with those of shareholders. Moreover, tax rules encourage or discourage these arrangements at various times. Currently, both tax rules and incentive considerations encourage stock buyback programs to fund deferred compensation arrangements. Prior to the 1980s, however, tax rules favored funding in other than company stock, implying that employees likely held company stock for incentive and not for tax reasons during this time period.