Morgan Stanley Purchases Journal of Applied Corporate Finance, Citing Commitment to Financial Innovation and Thought Leadership

Business Wire, Nov 1, 2004

NEW YORK -- Morgan Stanley (NYSE:MWD) announced today that it has acquired the quarterly Journal of Applied Corporate Finance (JACF) from consulting firm Stern Stewart.

The 16-year-old JACF has distinguished itself among financial journals by bringing together academic thinkers and financial practitioners to address topics driving corporate value.

"The Journal has been different from other business publications in its combination of academic rigor, readability and direct relevance to a high-level corporate audience," said Stern Stewart founding partner Bennett Stewart. "Morgan Stanley will provide the ideal platform for making the Journal even more influential."

Control of the journal's content will remain with its editors and authors. The JACF advisory board includes noted academics such as Richard Brealey of the London School of Business, Michael Brennan and Fred Weston of the University of California, Michael Jensen of Harvard University, Donald Lessard and Stewart Myers of MIT, and Steve Kaplan of the University of Chicago. The late Merton Miller, 1990 Nobel Prize winner for his pioneering work in the theory of financial economics, was an active participant and regular contributor.

"More than ever, solving financial problems for our clients requires a close engagement between academics and practitioners," said Vikram Pandit, Global Head of Morgan Stanley's Institutional Securities Group. "Innovation occurs where real-world problem-solving meets the latest thinking, and Morgan Stanley is committed to furthering that dialogue."

Don Chew, founding editor, will maintain his role at the Journal, which will continue to focus on risk management, corporate strategy, corporate governance and capital structure. Linda Riefler, a Managing Director focusing on innovation and client solutions for Morgan Stanley's Institutional Securities Group, said, "increasingly sophisticated markets have challenged managerial thinking on these issues, and Morgan Stanley wants to be at the forefront."

The Journal will continue its popular feature of roundtable discussions among corporate executives and academics, on topics such as integrity in financial reporting. Other recent articles include:

--Value Maximization, Stakeholder Theory, and the Corporate Objective Function, by Michael C. Jensen, The Monitor Group and Harvard Business School

--Real Options: State of the Practice, Alex Triantis, University of Maryland and Adam Borison, PricewaterhouseCoopers

--Transferable Stock Options and The Coming Revolution in Equity-Based Pay, by Brian J. Hall, Harvard Business School

--Oil imports, National Defense, and Bio-Energy, by Robert M. Ames, Anthony Corridore, and Paul W. MacAvoy, Yale University

--What Do We Know About Stock Repurchases? Theory and Evidence, David Ikenberry, Rice University

Morgan Stanley is a global financial services firm and a market leader in securities, investment management and credit services. With more than 600 offices in 27 countries, Morgan Stanley connects people, ideas and capital to help clients achieve their financial aspirations.