Nobel Prize in Economic Sciences: The Role of Financial Studies

Abstract

This chapter analyzes the influence of Nobel Prize-winning financial theories on strategic and managerial decisions relating to financial markets and intermediaries. As the study explains, the Royal Swedish Academy of Sciences has been responsible for selecting Nobel laureates in economic sciences since 1969. In these 50 years, 81 academics have been awarded the Nobel Prize in Economic Sciences, and the Royal Swedish Academy has awarded the prize to pure economists, experts in finance, and scholars investigating topics on the borderlines between economics and finance. The chapter provides a brief introduction to this important prize and its origin and then analyzes the fields and research in financial economics which have received it. The core part of the chapter investigates the decisions of the Royal Swedish Academy, with a special focus on the financial theories selected for the prize, in order to highlight the contributions of the Nobel Prize-winning academics to the development of the most accredited financial theories and practices.