Morgan Stanley

Morgan Stanley and American Finance Association Announce Stephen A. Ross as Recipient of the 2014 Award for Excellence in Finance

Feb 7, 2014

Professor Ross selects California Institute of Technology and Foundation for the Advancement of Research in Financial Economics as recipients of $200,000 cash grant

New York —

Morgan Stanley (NYSE: MS) and the American Finance Association (AFA) are pleased to announce Stephen A. Ross, the Franco Modigliani Professor of Financial Economics at the MIT Sloan School of Management, is the recipient of the Morgan Stanley-AFA 2014 Award For Excellence in Finance.  As part of the award, Professor Ross receives a $200,000 cash grant which he will donate in equally divided funds to the California Institute of Technology and the Foundation for the Advancement of Research in Financial Economics.

Ross has done pathbreaking work in both corporate finance and asset pricing.  His contributions include, among others, fundamental work on the role of arbitrage in the pricing of risky assets, the economic theory of agency, and the term structure of interest rates.  Ross is currently conducting research that focuses on extending and applying the Recovery Theorem.  He is also the managing partner of Ross, Jeffrey & Antle LLC.

“We’re delighted that the AFA selection committee has chosen Steve as the award recipient, a true pioneer in the industry and a fundamental architect of modern-day derivatives pricing,” said Peter Carr, Managing Director and Global Head of Market Modeling at Morgan Stanley.  “Steve has made significant advancements to the field of financial research that greatly benefit our industry.  Morgan Stanley has a long-standing commitment to thought leadership in this important discipline, and we are pleased that his decision to donate his award money to the California Institute of Technology and the Foundation for the Advancement of Research in Financial Economics will help further his and his colleagues’ efforts.”

Added James Schallheim, Executive Secretary and Treasurer, AFA: “Steve’s contributions to the field of asset and derivatives pricing are too numerous to count.  As the author of more than 100 articles in economics and finance, Stephen has provided significant thought leadership to the field.  The models Stephen helped to develop, including term structure models and option pricing models, are standards at major securities trading firms today.”

The Morgan Stanley-American Finance Association Award for Excellence in Finance recognizes career achievements and leadership in financial economics research.  It was established in 2007 and is announced bi-annually.  Recipients of the prize may donate the cash gift to an institution of their choice to support financial research.  In addition, Morgan Stanley awards a separate Ph.D. Prize for Excellence in Financial Markets each year to a Ph.D. student who has performed outstanding research in the fields of finance and financial economics.  To learn more about this prize, please visit  

Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services. The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 1,200 offices in 43 countries. For further information about Morgan Stanley, please visit

The American Finance Association is the premier academic organization devoted to the study and promotion of knowledge about financial economics.  Founded in 1940, the AFA now has more than 10,000 members and publishes the world-renowned Journal of Finance.  For further information about the AFA, please visit

Media Relations Contact:  Lauren Bellmare, 212.761.5303