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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Estimating the Volatility of Discrete Stock Prices

Published: 6/1988,  Volume: 43,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1988.tb03949.x  |  Cited by: 40

D. CHINHYUNG CHO, EDWARD W. FREES

This paper introduces an estimator of stock price volatility that eliminates, at least asymptotically, the biases that are caused by the discreteness of observed stock prices. Assuming that the observed stock prices are continuously monitored, an estimator is constructed using the notion of how quickly the price changes rather than how much the price changes. It is shown that this estimator has desirable asymptotic properties, including consistency and asymptotic normality. Also, through a simulation study, the authors show that it outperforms natural estimators for the low‐ and middle‐priced stocks. Furthermoret, he simulation study demonstratest hat the proposed estimator is robust to certain misspecifications in measuring the time between price changes.


DOMESTIC AND INTERNATIONAL OBJECTIVES OF UNITED STATES MONETARY POLICY*

Published: 5/1963,  Volume: 18,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1963.tb00714.x  |  Cited by: 1

Edward Bernstein


FINANCIAL POLICY UNDER ALTERNATIVE EXCHANGE‐RATE SYSTEMS*

Published: 6/1971,  Volume: 26,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1971.tb01743.x  |  Cited by: 0

Edward Tower


BUSINESS INVESTMENT IN PLANT AND EQUIPMENT AN EMPIRICAL STUDY*

Published: 3/1963,  Volume: 18,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1963.tb01626.x  |  Cited by: 0

Edward Greenberg


The Expected Utility of the Doubling Strategy

Published: 6/1989,  Volume: 44,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1989.tb05071.x  |  Cited by: 2

EDWARD OMBERG

It has been noted that a certain continuous‐time trading strategy, termed the “doubling strategy”, generates a positive net return on borrowed funds, with probability one and within a finite period of time. Since the doubling strategy seems to represent a “free lunch” or arbitrage opportunity, a variety of constraints to render it infeasible have been proposed. In this paper, we show that the doubling strategy generates infinite disutility for a large class of utility functions, and we can think of no utility function for a risk‐averse agent which is a counterexample.


A Note on the Convergence of Binomial‐Pricing and Compound‐Option Models

Published: 6/1987,  Volume: 42,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1987.tb02578.x  |  Cited by: 25

EDWARD OMBERG


THE EFFECTIVENESS OF CANADIAN FISCAL POLICY

Published: 12/1952,  Volume: 7,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1952.tb02483.x  |  Cited by: 0

Edward Marcus


Market Incompleteness and Divergences Between Forward and Futures Interest Rates*

Published: 5/1980,  Volume: 35,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1980.tb02150.x  |  Cited by: 16

EDWARD J. KANE


MONETARY POLICY AND SALES‐FINANCE AND SMALL‐LOAN COMPANIES' FUNDS, 1949–54*

Published: 12/1959,  Volume: 14,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1959.tb00149.x  |  Cited by: 0

Ray Edward Dawson


A Further Empirical Investigation of the Bankruptcy Cost Question

Published: 9/1984,  Volume: 39,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1984.tb03893.x  |  Cited by: 641

EDWARD I. ALTMAN

In this paper, empirical evidence with respect to both the direct and indirect costs of bankruptcy is assessed. This should be of interest for three related reasons. First, there is a need to provide further evidence as to the size of bankruptcy costs. Second, for the first time a proxy methodology for measuring indirect costs of bankruptcy is presented and actually measured. Third, a simple format for measuring the present value of expected bankruptcy costs is compared with the present value of expected tax benefits from interest payments on leverage. This comparison has important implications for the continuing debate as to whether or not an optimum capital structure exists for corporations.


THE TERM STRUCTURE OF INTEREST RATES: AN ATTEMPT TO RECONCILE TEACHING WITH PRACTICE

Published: 5/1970,  Volume: 25,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1970.tb00514.x  |  Cited by: 7

Edward J. Kane


A NOTE ON THE REVIVAL OF FEDERAL RESERVE DISCOUNT POLICY

Published: 12/1956,  Volume: 11,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1956.tb04083.x  |  Cited by: 0

Edward C. Simmons


ADMINISTRATION OF THE PURCHASING FUNCTION IN STATE GOVERNMENT*

Published: 12/1957,  Volume: 12,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1957.tb04162.x  |  Cited by: 0

Edward S. Lynn


REPLY

Published: 6/1972,  Volume: 27,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1972.tb00996.x  |  Cited by: 1

Edward I. Altman


A REPLY

Published: 12/1970,  Volume: 25,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1970.tb00880.x  |  Cited by: 3

Edward I. Altman


Measuring Corporate Bond Mortality and Performance

Published: 9/1989,  Volume: 44,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1989.tb02630.x  |  Cited by: 203

EDWARD I. ALTMAN

This study develops an alternative way to measure default risk and suggests an appropriate method to assess the performance of fixed‐income investors over the entire spectrum of credit‐quality classes. The approach seeks to measure the expected mortality of bonds and the consequent loss rates in a manner similar to the way actuaries assess mortality of human beings. The results show that all bond ratings outperform riskless Treasuries over a ten‐year horizon and that, despite relatively high mortality rates, B‐rated and CCC‐rated securities outperform all other rating categories for the first four years after issuance, with BB‐rated securities outperforming all others thereafter.


THE ANALYTICS OF MULTIBANK HOLDING COMPANY BEHAVIOR*

Published: 9/1975,  Volume: 30,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1975.tb01034.x  |  Cited by: 0

Gregory Edward Boczar


A PORTFOLIO—BALANCE MODEL OF CORPORATE WORKING CAPITAL

Published: 5/1978,  Volume: 33,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1978.tb04866.x  |  Cited by: 2

Edward E. Yardeni


AN INVESTIGATION INTO THE CHARACTERISTICS OF THE MUTUAL SAVINGS BANK RESIDENTIAL MORTGAGE*

Published: 3/1970,  Volume: 25,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1970.tb00425.x  |  Cited by: 0

Steven Edward Bolten


AN INVESTMENT ANALYSIS APPROACH TO STOCK LIFE INSURANCE COMPANIES*

Published: 9/1957,  Volume: 12,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1957.tb04148.x  |  Cited by: 0

Edward Axel Nelson


The Recognition Lag of the Federal Advisory Council

Published: 3/1979,  Volume: 34,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1979.tb02083.x  |  Cited by: 0

EDWARD B. SELBY


Accelerating Inflation, Technological Innovation, and the Decreasing Effectiveness of Banking Regulation

Published: 5/1981,  Volume: 36,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1981.tb00449.x  |  Cited by: 119

EDWARD J. KANE


THE INTERREGIONAL FLOW OF FUNDS IN THE UNITED STATES, 1955–58*

Published: 12/1962,  Volume: 17,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1962.tb04351.x  |  Cited by: 0

Edward J. Kane


FINANCIAL RATIOS, DISCRIMINANT ANALYSIS AND THE PREDICTION OF CORPORATE BANKRUPTCY

Published: 9/1968,  Volume: 23,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1968.tb00843.x  |  Cited by: 12092

Edward I. Altman


REPLY

Published: 12/1969,  Volume: 24,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1969.tb01706.x  |  Cited by: 0

Edward L. Whalen


CAPITAL GAINS TAXATION AND YEAR‐END STOCK MARKET BEHAVIOR

Published: 3/1977,  Volume: 32,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1977.tb03250.x  |  Cited by: 94

Edward A. Dyl


THE PREDICTION OF CORPORATE BANKRUPTCY: A DISCRIMINANT ANALYSIS*

Published: 3/1968,  Volume: 23,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1968.tb03007.x  |  Cited by: 13

Edward I. Altman


RAILROAD BANKRUPTCY PROPENSITY

Published: 5/1971,  Volume: 26,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1971.tb00901.x  |  Cited by: 27

Edward I. Altman


THE VALUATION OF CLOSELY HELD INDUSTRIAL SHARES FOR FEDERAL TAX PURPOSES*

Published: 9/1956,  Volume: 11,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1956.tb00114.x  |  Cited by: 0

Adolph Edward Grunewald


DISCUSSION

Published: 6/1978,  Volume: 33,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1978.tb00771.x  |  Cited by: 0

Edward F. Denison


RISK, UNCERTAINTY, AND DIVERGENCE OF OPINION

Published: 9/1977,  Volume: 32,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1977.tb03317.x  |  Cited by: 2839

Edward M. Miller


DISCUSSION

Published: 5/1983,  Volume: 38,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1983.tb02259.x  |  Cited by: 1

EDWARD I. ALTMAN


CHANGING CHARACTER OF THE REAL ESTATE MORTGAGE MARKETS

Published: 5/1964,  Volume: 19,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1964.tb00770.x  |  Cited by: 0

Edward E. Edwards


A CROSS‐SECTION STUDY OF BUSINESS DEMAND FOR CASH*

Published: 9/1965,  Volume: 20,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1965.tb02907.x  |  Cited by: 6

Edward L. Whalen


THE HISTORY, ORGANIZATION, AND POLICIES OF THE BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION*

Published: 12/1953,  Volume: 8,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1953.tb01191.x  |  Cited by: 0

Edward P. Shaw


AN EXTENSION OF THE BAUMOL‐TOBIN APPROACH TO THE TRANSACTIONS DEMAND FOR CASH

Published: 3/1968,  Volume: 23,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1968.tb03001.x  |  Cited by: 13

Edward L. Whalen


BLACK BANKING—PROBLEMS AND PROSPECTS

Published: 5/1971,  Volume: 26,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1971.tb00906.x  |  Cited by: 1

Edward D. Irons


Technological and Regulatory Forces in the Developing Fusion of Financial‐Services Competition

Published: 7/1984,  Volume: 39,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1984.tb03667.x  |  Cited by: 7

EDWARD J. KANE

Product lines of traditionally heterogeneous financial institutions are rapidly fusing into a homogeneous blend. Institutions and market structures are reshaping themselves to lower the cost of serving customer demand for financial services. This paper contends that contemporary adaptations exploit scope economies rooted in technological change and deposit‐insurance subsidies to innovative forms of risk‐bearing.As they reorient work flows, financial firms are simultaneously restructuring their organizations to lower net burdens from government regulation. Alternative state and federal regulatory and legislative bodies compete vigorously for the regulatory business of developing institutional hybrids. Evolution of Federal Reserve policy toward “nonbank banks” exemplifies the process.


A NOTE ON THE CAUSES OF INSTABILITY IN THE MONEY SUPPLY

Published: 9/1951,  Volume: 6,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1951.tb04474.x  |  Cited by: 0

Edward C. Simmons


Principal‐Agent Problems in S&L Salvage

Published: 7/1990,  Volume: 45,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1990.tb05104.x  |  Cited by: 87

EDWARD J. KANE

New legislation and traditional FDIC insolvency‐resolution procedures transform and intensify the principal‐agent problems most responsible for the FSLIC mess. These problems explain counterproductive constraints on the governance and operating policies of the agency responsible for rescuing and salvaging assets in insolvent thrifts: the RTC. The constraints slow insolvency resolution, increase interim financing costs, and undermine RTC recovery of asset value. Operationalizing its task as preserving evanescent and economically misconceived “franchise values,” the RTC allows insolvents to seek financing on an unconsolidated basis, initiates bidding for one institution at a time, holds back seriously troubled assets, and recruits an overly narrow range of bidders.


THE FISCAL IMPACT OF THE FEDERAL BUDGET*

Published: 3/1966,  Volume: 21,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1966.tb02967.x  |  Cited by: 0

Edward M. Gramlich


MONEY, PRICES AND OUTPUT

Published: 6/1976,  Volume: 31,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1976.tb01937.x  |  Cited by: 0

EDWARD F. RENSHAW


FINANCING THE FLOW OF MAJOR HOME APPLIANCES*

Published: 12/1957,  Volume: 12,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1957.tb04163.x  |  Cited by: 0

Edward L. Rada


MUTUAL FUND MANAGEMENT FEE RATES*

Published: 5/1963,  Volume: 18,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1963.tb00729.x  |  Cited by: 4

Edward S. Herman


SALES OF GOVERNMENT SECURITIES TO FEDERAL RESERVE BANKS UNDER REPURCHASE AGREEMENTS

Published: 3/1954,  Volume: 9,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1954.tb01203.x  |  Cited by: 7

Edward C. Simmons


AN ECONOMIC ANALYSIS OF FINANCING AN INTERSTATE HIGHWAY SYSTEM*

Published: 3/1962,  Volume: 17,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1962.tb04260.x  |  Cited by: 0

Frederick Edward Kottke


PROFIT‐PLANNING AND THE FINANCE FUNCTION

Published: 12/1957,  Volume: 12,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1957.tb04159.x  |  Cited by: 1

Sidney Robbins, Edward Foster


DISTRIBUTION OF NEW SECURITIES IN SEC. 77 REORGANIZATIONS

Published: 12/1950,  Volume: 5,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1950.tb03800.x  |  Cited by: 0

Edward T. P. Watson


Default Premiums in Commodity Markets: Theory and Evidence

Published: 7/1991,  Volume: 46,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1991.tb03777.x  |  Cited by: 8

WARREN BAILEY, EDWARD NG

We model the effect of nonperformance risk on forward and futures pricing and look for evidence of nonperformance risk in precious metals futures prices from the “Hunt Brothers”episode. Changes in default premiums are measured and related to the sequence of events in the metals markets during this period. Results suggest first that ex ante costs of nonperformance can be a significant, priced factor in commodity markets and second that the arrival of new information is often associated with changes in these costs. The evidence has implications for both theoretical and empirical research on commodity markets.


A Financial Early Warning System For Over‐The‐Counter Broker‐Dealers

Published: 9/1976,  Volume: 31,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1976.tb01969.x  |  Cited by: 30

Edward I. Altman, Bettina Loris