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Michael JensenAmerican economist
Date of Birth: 30.11.1939
Country:  USA |
Content:
- Michael Jensen: A Renowned Figure in Financial Economics
- Academic Career
- A Leader in Financial Economics
- Groundbreaking Contributions
- Controversial Views on Public Corporations
- Legacy of Influence
Michael Jensen: A Renowned Figure in Financial Economics
Early Life and EducationMichael Cole "Mike" Jensen was born in Rochester, Minnesota, USA, in 1939. He received his Bachelor's degree in Economics from Macalester College in 1962 and completed his Master's degree at the University of Chicago Booth School of Business in the late 1960s.
Academic Career
Jensen held the position of Professor of Business Administration and Finance at the William E. Simon Graduate School of Business Administration of the University of Rochester from 1967 to 1988. During this period, he also founded the Managerial Economics Research Center at the same university in the late 1970s.
A Leader in Financial Economics
Today, Jensen serves as a Senior Advisor at the prominent consulting firm Monitor Group. He is widely recognized as one of the most esteemed scholars in the field of financial economics and is currently a Professor Emeritus in Business Administration at Harvard Business School. Jensen has also been honored with the Jesse Isidor Straus Professorship of Business Administration, Emeritus.
Jensen has been lauded as "Scholar of the Year" by the Eastern Finance Association and named one of "25 Most Interesting People in Business" by Fortune magazine. His research primarily focuses on evaluating managerial performance.
Groundbreaking Contributions
Jensen's most famous and widely cited work is the article "Theory of the firm: Managerial behaviour, agency costs and ownership structure," co-authored with William H. Meckling in 1976. This publication established the concept of agency relationships in financial management.
Controversial Views on Public Corporations
Jensen faced significant criticism in the late 1980s for his controversial article "The Eclipse of the Public Corporation," in which he questioned the future of public companies. His statements were considered shocking, amateurish, and at best "extravagant." However, his foresight has subsequently been acknowledged by many.
Legacy of Influence
Jensen has earned the moniker "Patriarch of Market Efficiency Theory" for his pioneering research that has remained relevant for decades. His famous quote, "There is no theory in economics that has more solid empirical evidence than the Efficient Market Hypothesis," underscores his significant contributions to the field.
