The Journal of Finance

The Journal of Finance publishes leading research across all the major fields of finance. It is one of the most widely cited journals in academic finance, and in all of economics. Each of the six issues per year reaches over 8,000 academics, finance professionals, libraries, and government and financial institutions around the world. The journal is the official publication of The American Finance Association, the premier academic organization devoted to the study and promotion of knowledge about financial economics.

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Search results: 14.

Corporate Investment and Asset Price Dynamics: Implications for SEO Event Studies and Long‐Run Performance

Published: 5/16/2006,  Volume: 61,  Issue: 3  |  DOI: 10.1111/j.1540-6261.2006.00865.x  |  Cited by: 275

MURRAY CARLSON, ADLAI FISHER, RON GIAMMARINO

We present a rational theory of SEOs that explains a pre‐issuance price run‐up, a negative announcement effect, and long‐run post‐issuance underperformance. When SEOs finance investment in a real options framework, expected returns decrease endogenously because growth options are converted into assets in place. Regardless of their risk, the new assets are less risky than the options they replace. Although both size and book‐to‐market effects are present, standard matching procedures fail to fully capture the dynamics of risk and expected return. We calibrate the model and show that it closely matches the primary features of SEO return dynamics.


Corporate Investment and Asset Price Dynamics: Implications for the Cross‐section of Returns

Published: 12/2004,  Volume: 59,  Issue: 6  |  DOI: 10.1111/j.1540-6261.2004.00709.x  |  Cited by: 576

MURRAY CARLSON, ADLAI FISHER, RON GIAMMARINO

We show that corporate investment decisions can explain the conditional dynamics in expected asset returns. Our approach is similar in spirit to Berk, Green, and Naik (1999), but we introduce to the investment problem operating leverage, reversible real options, fixed adjustment costs, and finite growth opportunities. Asset betas vary over time with historical investment decisions and the current product market demand. Book‐to‐market effects emerge and relate to operating leverage, while size captures the residual importance of growth options relative to assets in place. We estimate and test the model using simulation methods and reproduce portfolio excess returns comparable to the data.


DISCUSSION

Published: 5/1982,  Volume: 37,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1982.tb03557.x  |  Cited by: 0

L. FISHER


A BRITISH TEST OF RECENT DEVELOPMENTS IN TERM STRUCTURE THEORY*

Published: 9/1967,  Volume: 22,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1967.tb02988.x  |  Cited by: 0

Douglas Fisher


DISCUSSION

Published: 7/1984,  Volume: 39,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1984.tb03650.x  |  Cited by: 1

LAWRENCE FISHER


THE OBJECTIVES OF BRITISH MONETARY POLICY, 1951–1964

Published: 12/1968,  Volume: 23,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1968.tb00319.x  |  Cited by: 1

Douglas Fisher


PUBLIC COSTS OF URBAN RENEWAL

Published: 5/1962,  Volume: 17,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1962.tb04290.x  |  Cited by: 1

Robert Moore Fisher


STATE INDIVIDUAL INCOME TAX JURISDICTION A STUDY OF UNNEUTRAL TAXATION*

Published: 3/1957,  Volume: 12,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1957.tb04107.x  |  Cited by: 0

Glenn W. Fisher


CHANGING INSTITUTIONAL PATTERNS OF MORTGAGE LENDING

Published: 12/1950,  Volume: 5,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1950.tb03797.x  |  Cited by: 0

Ernest M. Fisher


OUTLOOK FOR MORTGAGE MARKETS*

Published: 5/1960,  Volume: 15,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1960.tb00170.x  |  Cited by: 0

Robert Moore Fisher


Around and Around: The Expectations Hypothesis

Published: 2/1998,  Volume: 53,  Issue: 1  |  DOI: 10.1111/0022-1082.145490  |  Cited by: 20

Mark Fisher, Christian Gilles

We show how to construct models of the term structure of interest rates in which the expectations hypothesis holds. McCulloch (1993) presents such a model, thereby contradicting an assertion by Cox, Ingersoll, and Ross (1981), but his example is Gaussian and falls outside the class of finite‐dimensional Markovian models. We generalize McCulloch's model in three ways: (i) We provide an arbitrage‐free characterization of the unbiased expectations hypothesis in terms of forward rates; (ii) we extend this characterization to a whole class of expectations hypotheses; and (iii) we show how to construct finite‐dimensional Markovian and non‐Gaussian examples.


DISCUSSION

Published: 5/1974,  Volume: 29,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1974.tb03060.x  |  Cited by: 6

John B. Long, Lawrence Fisher


NEW‐ISSUE STOCK PRICE BEHAVIOR

Published: 3/1972,  Volume: 27,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1972.tb00624.x  |  Cited by: 86

J. G. McDonald, A. K. Fisher


PATTERNS OF HOUSING EXPERIENCE DURING PERIODS OF CREDIT RESTRAINT IN INDUSTRIALIZED COUNTRIES

Published: 5/1972,  Volume: 27,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1972.tb00954.x  |  Cited by: 0

George Sternlieb, Robert Moore Fisher, Charles J. Siegman