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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THE VALUE OF QUARTERLY INFORMATION IN PREDICTING FUTURE STOCK PRICE CHANGES*

Published: 9/1971,  Volume: 26,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1971.tb00942.x  |  Cited by: 0

Charles P. Jones


Oil and the Stock Markets

Published: 6/1996,  Volume: 51,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1996.tb02691.x  |  Cited by: 1259

CHARLES M. JONES, GAUTAM KAUL

We test whether the reaction of international stock markets to oil shocks can be justified by current and future changes in real cash flows and/or changes in expected returns. We find that in the postwar period, the reaction of United States and Canadian stock prices to oil shocks can be completely accounted for by the impact of these shocks on real cash flows alone. In contrast, in both the United Kingdom and Japan, innovations in oil prices appear to cause larger changes in stock prices than can be justified by subsequent changes in real cash flows or by changing expected returns.


A NOTE ON THE SIMULTANEOUS NATURE OF FINANCE METHODOLOGY

Published: 3/1972,  Volume: 27,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1972.tb00625.x  |  Cited by: 4

Michael A. Simkowitz, Charles P. Jones


STANDARDIZED UNEXPECTED EARNINGS—A PROGRESS REPORT

Published: 12/1977,  Volume: 32,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1977.tb03347.x  |  Cited by: 11

Henry A. Latané, Charles P. Jones


THE CAPITAL STRUCTURE AND THE COST OF CAPITAL: COMMENT

Published: 6/1970,  Volume: 25,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1970.tb00531.x  |  Cited by: 2

Robert H. Litzenberger, Charles P. Jones


QUARTERLY EARNINGS REPORTS AND INTERMEDIATE STOCK PRICE TRENDS

Published: 3/1970,  Volume: 25,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1970.tb00420.x  |  Cited by: 99

Charles P. Jones, Robert H. Litzenberger


Standardized Unexpected Earnings—1971–77

Published: 6/1979,  Volume: 34,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1979.tb02136.x  |  Cited by: 23

HENRY A. LATANÉ, CHARLES P. JONES


An Analysis of Risk and Return Characteristics of Corporate Bankruptcy Using Capital Market Data

Published: 9/1980,  Volume: 35,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1980.tb03516.x  |  Cited by: 78

JOSEPH AHARONY, CHARLES P. JONES, ITZHAK SWARY


Which Shorts Are Informed?

Published: 4/2008,  Volume: 63,  Issue: 2  |  DOI: 10.1111/j.1540-6261.2008.01324.x  |  Cited by: 796

EKKEHART BOEHMER, CHARLES M. JONES, XIAOYAN ZHANG

We construct a long daily panel of short sales using proprietary NYSE order data. From 2000 to 2004, shorting accounts for more than 12.9% of NYSE volume, suggesting that shorting constraints are not widespread. As a group, these short sellers are well informed. Heavily shorted stocks underperform lightly shorted stocks by a risk‐adjusted average of 1.16% over the following 20 trading days (15.6% annualized). Institutional nonprogram short sales are the most informative; stocks heavily shorted by institutions underperform by 1.43% the next month (19.6% annualized). The results indicate that, on average, short sellers are important contributors to efficient stock prices.


Does Algorithmic Trading Improve Liquidity?

Published: 1/6/2011,  Volume: 66,  Issue: 1  |  DOI: 10.1111/j.1540-6261.2010.01624.x  |  Cited by: 1315

TERRENCE HENDERSHOTT, CHARLES M. JONES, ALBERT J. MENKVELD

Algorithmic trading (AT) has increased sharply over the past decade. Does it improve market quality, and should it be encouraged? We provide the first analysis of this question. The New York Stock Exchange automated quote dissemination in 2003, and we use this change in market structure that increases AT as an exogenous instrument to measure the causal effect of AT on liquidity. For large stocks in particular, AT narrows spreads, reduces adverse selection, and reduces trade‐related price discovery. The findings indicate that AT improves liquidity and enhances the informativeness of quotes.


Can Tax‐Loss Selling Explain the January Effect? A Note

Published: 6/1987,  Volume: 42,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1987.tb02577.x  |  Cited by: 39

CHARLES P. JONES, DOUGLAS K. PEARCE, JACK W. WILSON


Tracking Retail Investor Activity

Published: 5/14/2021,  Volume: 76,  Issue: 5  |  DOI: 10.1111/jofi.13033  |  Cited by: 544

EKKEHART BOEHMER, CHARLES M. JONES, XIAOYAN ZHANG, XINRAN ZHANG

We provide an easy method to identify marketable retail purchases and sales using recent, publicly available U.S. equity transactions data. Individual stocks with net buying by retail investors outperform stocks with negative imbalances by approximately 10 bps over the following week. Less than half of the predictive power of marketable retail order imbalance is attributable to order flow persistence, while the rest cannot be explained by contrarian trading (proxy for liquidity provision) or public news sentiment. There is suggestive, but only suggestive, evidence that retail marketable orders might contain firm‐level information that is not yet incorporated into prices.


Time Variation in Liquidity: The Role of Market‐Maker Inventories and Revenues

Published: 1/13/2010,  Volume: 65,  Issue: 1  |  DOI: 10.1111/j.1540-6261.2009.01530.x  |  Cited by: 283

CAROLE COMERTON‐FORDE, TERRENCE HENDERSHOTT, CHARLES M. JONES, PAMELA C. MOULTON, MARK S. SEASHOLES

We show that market‐maker balance sheet and income statement variables explain time variation in liquidity, suggesting liquidity‐supplier financing constraints matter. Using 11 years of NYSE specialist inventory positions and trading revenues, we find that aggregate market‐level and specialist firm‐level spreads widen when specialists have large positions or lose money. The effects are nonlinear and most prominent when inventories are big or trading results have been particularly poor. These sensitivities are smaller after specialist firm mergers, consistent with deep pockets easing financing constraints. Finally, compared to low volatility stocks, the liquidity of high volatility stocks is more sensitive to inventories and losses.


SOME ASPECTS OF DEMAND FOR CONSUMER DURABLE GOODS*

Published: 5/1954,  Volume: 9,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1954.tb01216.x  |  Cited by: 0

Homer Jones


INVESTMENT PROSPECTS

Published: 4/1947,  Volume: 2,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1947.tb00787.x  |  Cited by: 0

Homer Jones


ON THE DISTRIBUTIONAL IMPACT OF FEDERAL INTEREST RATE RESTRICTIONS

Published: 3/1978,  Volume: 33,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1978.tb03399.x  |  Cited by: 4

Charles Clotfelter, Charles Lieberman


THE EUROPEAN MONETARY AGREEMENT, THE EUROPEAN PAYMENTS UNION, AND CONVERTIBILITY

Published: 9/1957,  Volume: 12,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1957.tb04142.x  |  Cited by: 2

Dallas Jones


INVESTMENT IN EQUITIES BY LIFE INSURANCE COMPANIES*

Published: 6/1950,  Volume: 5,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1950.tb02478.x  |  Cited by: 0

Homer Jones


THE FLOW OF SAVINGS. II*

Published: 3/1949,  Volume: 4,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1949.tb02335.x  |  Cited by: 0

Homer Jones


THE DEVELOPMENT OF AN EFFECTIVE SECONDARY MORTGAGE MARKET*

Published: 5/1962,  Volume: 17,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1962.tb04288.x  |  Cited by: 4

Oliver Jones


THE FLOW OF SAVINGS—I*

Published: 10/1948,  Volume: 3,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1948.tb01514.x  |  Cited by: 0

Homer Jones


PRIVATE SECONDARY MARKET FACILITIES

Published: 5/1968,  Volume: 23,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1968.tb00812.x  |  Cited by: 15

Oliver Jones


THE SECONDARY MARKET FOR URBAN RESIDENTIAL MORTGAGES*

Published: 12/1962,  Volume: 17,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1962.tb04343.x  |  Cited by: 0

Oliver Hastings Jones


THE ROLE AND VIABILITY OF MUTUAL BANKS (Abstract)

Published: 5/1975,  Volume: 30,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1975.tb01840.x  |  Cited by: 0

Oliver H. Jones, Lawrence D. Jones, R. Richardson Pettit


A Nonlinear Factor Analysis of S&P 500 Index Option Returns

Published: 9/19/2006,  Volume: 61,  Issue: 5  |  DOI: 10.1111/j.1540-6261.2006.01059.x  |  Cited by: 135

CHRISTOPHER S. JONES

Growing evidence suggests that extraordinary average returns may be obtained by trading equity index options, and that at least part of this abnormal performance is attributable to volatility and jump risk premia. This paper asks whether such priced risk factors are alone sufficient to explain these average returns. To provide an answer in as general as possible a setting, I estimate a flexible class of nonlinear models using all S&P 500 Index futures options traded between 1986 and 2000. The results show that priced factors contribute to these expected returns but are insufficient to explain their magnitudes, particularly for short‐term out‐of‐the‐money puts.


The Sampling Error in Estimates of Mean‐Variance Efficient Portfolio Weights

Published: 4/1999,  Volume: 54,  Issue: 2  |  DOI: 10.1111/0022-1082.00120  |  Cited by: 405

Mark Britten‐Jones

This paper presents an exact finite‐sample statistical procedure for testing hypotheses about the weights of mean‐variance efficient portfolios. The estimation and inference procedures on efficient portfolio weights are performed in the same way as for the coefficients in an OLS regression. OLS t‐ and F‐statistics can be used for tests on efficient weights, and when returns are multivariate normal, these statistics have exact t and F distributions in a finite sample. Using 20 years of data on 11 country stock indexes, we find that the sampling error in estimates of the weights of a global efficient portfolio is large.


TEST OF PORTFOLIO BUILDING RULES: COMMENT

Published: 9/1971,  Volume: 26,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1971.tb00936.x  |  Cited by: 0

Irwin E. Jones


THE REGIONAL IMPACT OF FEDERAL FISCAL POLICY*

Published: 3/1957,  Volume: 12,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1957.tb04106.x  |  Cited by: 0

Norman H. Jones


THE MORTGAGE MARKET

Published: 5/1964,  Volume: 19,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1964.tb00780.x  |  Cited by: 0

Oliver H. Jones


Fed Policy, Financial Market Efficiency, and Capital Flows

Published: 8/1999,  Volume: 54,  Issue: 4  |  DOI: 10.1111/0022-1082.00153  |  Cited by: 0

David M. Jones


On the Number of Factors in the Arbitrage Pricing Model

Published: 6/1986,  Volume: 41,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1986.tb05041.x  |  Cited by: 111

CHARLES TRZCINKA

Recent theory has demonstrated that the Arbitrage Pricing Model with K factors critically depends on whether K eigenvalues dominate the covariance matrix of returns as the number of securities grows large. The purpose of this paper is to test whether sample covariance matrices can be characterized as having K large eigenvalues. Using all available data on the 1983 CRSP tapes, we compute sample covariance matrices of returns in sequentially larger portfolios of securities. Analyzing their eigenvalues, we find evidence that one eigenvalue dominates the covariance matrix indicating that a one‐factor model may describe security pricing. We also find that, for values of K larger than one, there is no obvious way to choose the number of factors. Nevertheless, we find that while only the first eigenvalue dominates the matrix, the first five eigenvalues are growing more distinct.


COMMERCIAL‐BANK HOLDINGS OF MORTGAGES INSURED BY THE FEDERAL HOUSING ADMINISTRATION*

Published: 3/1971,  Volume: 26,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1971.tb00608.x  |  Cited by: 0

Charles Huegy


THE FISCAL IMPACTS OF INTERGOVERNMENTAL AID ON LOCAL GOVERNMENTS IN ONONDAGA COUNTY, NEW YORK*

Published: 12/1970,  Volume: 25,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1970.tb00890.x  |  Cited by: 0

Charles Waldauer


AN INVESTIGATION OF THE SHORT RUN EFFECTS OF CAPITAL GAINS ON HOUSEHOLD CONSUMPTION AND SAVING*

Published: 9/1975,  Volume: 30,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1975.tb01039.x  |  Cited by: 0

Charles Lieberman


DISCUSSION

Published: 5/1976,  Volume: 31,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1976.tb00577.x  |  Cited by: 1

Charles Upton


The Pricing of Tax‐Exempt Bonds and the Miller Hypothesis

Published: 9/1982,  Volume: 37,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1982.tb03588.x  |  Cited by: 60

CHARLES TRZCINKA

This paper reports a new test of two competing theories of the relation between tax‐exempt and taxable interest rates. The Miller hypothesis predicts that the tax‐exempt rate is 52 percent of the taxable rate, while the institutional demand hypothesis predicts a volatile relationship. The tests in this paper employ a random intercept model to control for the risk of average interest rates. The results favor the Miller hypothesis. Marginal tax rates are found to be close to Miller's predicted 48 percent. The relationship is not influenced by relative demand or supply and the marginal tax rate appears stable over time.


HOW THE UNITED STATES FINANCED WORLD WAR I*

Published: 12/1955,  Volume: 10,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1955.tb01303.x  |  Cited by: 0

Charles Gilbert


OPTIMAL LIFE INSURANCE: COMMENT

Published: 6/1975,  Volume: 30,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1975.tb01866.x  |  Cited by: 1

M. W. Jones‐Lee


Bids and Allocations in European IPO Bookbuilding

Published: 10/2004,  Volume: 59,  Issue: 5  |  DOI: 10.1111/j.1540-6261.2004.00700.x  |  Cited by: 156

TIM JENKINSON, HOWARD JONES

This paper uses evidence from a data set of 27 European IPOs to analyze how investors bid and the factors that influence their allocations. We also make use of a unique ranking of investor quality, associated with the likelihood of flipping the IPO. We find that investors perceived to be long‐term holders of the stock are consistently favored in allocation and in out‐turn profits. In contrast to Cornelli and Goldreich (2001), we find little evidence that more informative bids receive larger allocations or higher profits. Our results cast doubt upon the extent of information production during the bookbuilding period.


SOME PORTFOLIO ADJUSTMENT THEOREMS FOR THE CASE OF NON‐NEGATIVITY CONSTRAINTS ON SECURITY HOLDINGS

Published: 6/1971,  Volume: 26,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1971.tb01730.x  |  Cited by: 1

M. W. Jones-Lee


DISCUSSION

Published: 5/1967,  Volume: 22,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1967.tb00014.x  |  Cited by: 0

Charles M. Linke


THE FINANCIAL POLICIES OF CHURCHES

Published: 12/1951,  Volume: 6,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1951.tb04483.x  |  Cited by: 1

Charles N. Millican


FEDERAL CREDIT UNIONS IN THE UNITED STATES AN ANALYSIS*

Published: 3/1959,  Volume: 14,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1959.tb00497.x  |  Cited by: 0

Charles F. Meehling


Growth, Consolidation and Mergers in Banking: Comment

Published: 9/1976,  Volume: 31,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1976.tb01973.x  |  Cited by: 0

R. Charles Moyer


THE ADEQUACY OF FEDERAL RESERVE POWERS TO DISCHARGE RESPONSIBILITIES*

Published: 5/1959,  Volume: 14,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1959.tb01576.x  |  Cited by: 0

Charles F. Haywood


OLD AND NEW IDEAS ON RESERVE REQUIREMENTS

Published: 5/1953,  Volume: 8,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1953.tb01156.x  |  Cited by: 0

Charles R. Whittlesey


CHANGES IN RAILROAD FINANCIAL STRUCTURES 1929–1958*

Published: 12/1962,  Volume: 17,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1962.tb04347.x  |  Cited by: 0

Charles A. D'Ambrosio


INFLATION AND CAPITAL BUDGETING

Published: 6/1976,  Volume: 31,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1976.tb01934.x  |  Cited by: 35

Charles R. Nelson


THE IMPLEMENTATION OF MONETARY POLICY WITH SPECIAL ATTENTION TO THE AVAILABILITY OF CREDIT*

Published: 12/1956,  Volume: 11,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1956.tb04094.x  |  Cited by: 0

Charles Foster Haywood


The Hedging Performance of the New Futures Markets: Comment

Published: 12/1980,  Volume: 35,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1980.tb02211.x  |  Cited by: 65

CHARLES T. FRANCKLE