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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Mutual Fund Trading Pressure: Firm‐Level Stock Price Impact and Timing of SEOs

Published: 7/19/2012,  Volume: 67,  Issue: 4  |  DOI: 10.1111/j.1540-6261.2012.01750.x  |  Cited by: 204

MOZAFFAR KHAN, LEONID KOGAN, GEORGE SERAFEIM

We use price pressure resulting from purchases by mutual funds with large capital inflows to identify overvalued equity. This is a relatively exogenous overvaluation indicator as it is associated with who is buying—buyers with excess liquidity—rather than what is being purchased. We document substantial stock price impact associated with purchases by high‐inflow mutual funds, and find the probability of a seasoned equity offering (SEO), insider sales, and the probability of a stock‐based acquisition increase significantly in the four quarters following the mutual fund buying pressure. These results provide new evidence that firm managers are able to identify and exploit overvalued equity.


PROJECTING MARKET STRUCTURE BY MONTE CARLO SIMULATION: A STUDY OF BANK EXPANSION IN NEW JERSEY

Published: 12/1972,  Volume: 27,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1972.tb03027.x  |  Cited by: 0

George R. Juncker, George S. Oldfield


VALUATION PARAMETERS OF PROPERTY‐LIABILITY COMPANIES

Published: 6/1977,  Volume: 32,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1977.tb01991.x  |  Cited by: 12

George Foster


OPEN MARKET OPERATIONS, THE RATE OF INTEREST, AND THE PRICE LEVEL: AN ESSAY IN THE PURE THEORY OF INTEREST AND MONEY*

Published: 12/1955,  Volume: 10,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1955.tb01302.x  |  Cited by: 0

George Horwich


Deposit Insurance and the Discount Window: Pricing under Asymmetric Information

Published: 6/1986,  Volume: 41,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1986.tb05047.x  |  Cited by: 19

GEORGE KANATAS

The risk‐sensitive pricing of deposit insurance and the discount window is determined in an environment where banks have private information concerning their financial conditions. The two facilities are managed jointly; an incentive‐compatible policy is designed such that banks' choice of terms at which they can obtain insurance and access to discount window credit will reveal their asset quality. The function of the discount window is to be a risk‐neutral “lender of last resort” to banks in a market dominated by risk‐averse depositors.


INTRODUCTION

Published: 5/1965,  Volume: 20,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1965.tb00201.x  |  Cited by: 0

George Garvy


ELEMENTS OF TIMING AND RESPONSE IN THE BALANCE SHEET OF BANKING, 1953–55*

Published: 5/1957,  Volume: 12,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1957.tb04133.x  |  Cited by: 0

George Horwich


TIGHT MONEY, MONETARY RESTRAINT, AND THE PRICE LEVEL*

Published: 3/1966,  Volume: 21,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1966.tb02952.x  |  Cited by: 2

George Horwich


THE LONG‐RUN EFFECTS UPON THE UNITED STATES OF THE INDUSTRIAL DEVELOPMENT OF THE FAR EAST*

Published: 12/1952,  Volume: 7,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1952.tb02488.x  |  Cited by: 0

George Rosen


Output, Stock Volatility, and Political Uncertainty in a Natural Experiment: Germany, 1880–1940

Published: 12/1998,  Volume: 53,  Issue: 6  |  DOI: 10.1111/0022-1082.00090  |  Cited by: 208

George Bittlingmayer

Why does stock volatility increase when output declines? The theory of investment under uncertainty implies that political uncertainty may simultaneously increase volatility and reduce output. Though cause and effect are typically hard to separate, the transition from Imperial to Weimar Germany offers a natural experiment because major political events left clear traces on stock prices. Current and past increases in volatility are associated with output declines, consistent with U.S. experience. However, political events are more clearly the source of volatility, and the results support the view that the relationship between volatility and output reflects the joint effects of political factors.


TIGHT MONEY AS A CAUSE OF INFLATION: REPLY

Published: 3/1971,  Volume: 26,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1971.tb00600.x  |  Cited by: 1

George Horwich


Stock Returns, Real Activity, and the Trust Question

Published: 12/1992,  Volume: 47,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1992.tb04680.x  |  Cited by: 24

GEORGE BITTLINGMAYER

Periodic antitrust attacks on corporations may have influenced stock prices. For the period 1904 to 1944, each antitrust case filed is associated with a 0.5 to 1.9 percent drop of the Dow, and each unexpected case with even larger drops. Other aspects of antitrust besides actual filings may help account for other movements, in particular the 1929 Crash. Historical evidence bears on the question of whether antitrust is exogenous and also links antitrust and the “corporation problem.” These results illustrate the sorts of real factors aside from changes in concurrent output that may account for stock price volatility.


Externalities and Financial Reporting

Published: 5/1980,  Volume: 35,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1980.tb02183.x  |  Cited by: 47

GEORGE FOSTER


DISCUSSION

Published: 7/1985,  Volume: 40,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1985.tb04997.x  |  Cited by: 0

GEORGE TAUCHEN


“IS THE FEDERAL RESERVE SYSTEM REALLY NECESSARY?”: COMMENT

Published: 9/1965,  Volume: 20,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1965.tb02913.x  |  Cited by: 1

George G. Kaufman


FEDERAL TAXING AND SPENDING IN VIRGINIA: A QUANTITATIVE STUDY

Published: 3/1951,  Volume: 6,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1951.tb04446.x  |  Cited by: 0

George W. McKinney


“A MULTIVARIATE ANALYSIS OF INDUSTRIAL BOND RATINGS” AND THE ROLE OF SUBORDINATION: REPLY

Published: 3/1978,  Volume: 33,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1978.tb03412.x  |  Cited by: 5

George E. Pinches


COMMERCIAL BANK PRICE DISCRIMINATION AGAINST SMALL LOANS: AN EMPIRICAL STUDY*

Published: 12/1964,  Volume: 19,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1964.tb02889.x  |  Cited by: 0

George J. Benston


SEASONAL MOVEMENTS IN THE FLOW OF FUNDS*

Published: 3/1965,  Volume: 20,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1965.tb00198.x  |  Cited by: 0

George J. Viksnins


A MICROECONOMIC APPROACH TO BANKING COMPETITION: COMMENT

Published: 6/1972,  Volume: 27,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1972.tb00997.x  |  Cited by: 3

George J. Benston


BUSINESS PROCEEDINGS, AMERICAN FINANCE ASSOCIATION

Published: 5/1959,  Volume: 14,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1959.tb01592.x  |  Cited by: 0

George E. Hassett


PROPERTY TAXATION IN RELATION TO INVESTMENT IN URBAN AREAS

Published: 6/1951,  Volume: 6,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1951.tb04459.x  |  Cited by: 0

George W. Mitchell


FINANCING WITH CONVERTIBLE PREFERRED STOCK, 1960–1967: REPLY

Published: 3/1971,  Volume: 26,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1971.tb00598.x  |  Cited by: 0

George E. Pinches


LAND DEVELOPMENT‐VALUE PROBLEMS AND THE TOWN AND COUNTRY PLANNING ACT OF 1947*

Published: 12/1955,  Volume: 10,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1955.tb01307.x  |  Cited by: 0

George G. Sause


Minutes of the Annual Membership Meeting December 29, 1959

Published: 5/1960,  Volume: 15,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1960.tb00174.x  |  Cited by: 0

George E. Hassett


RESPONSES OF SELECTED COMMERCIAL BANKS TO FEDERAL RESERVE POLICY, JANUARY, 1957, TO APRIL, 1959*

Published: 3/1963,  Volume: 18,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1963.tb01627.x  |  Cited by: 0

George G. Kaufman


THE PROXIMATE IMPACT OF MONETARY POLICY ON FLOWS OF FUNDS THROUGH FINANCIAL INTERMEDIARIES*

Published: 9/1966,  Volume: 21,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1966.tb00263.x  |  Cited by: 0

William George Nelson


THE CAPITAL STRUCTURE IN AMERICAN BANKING

Published: 12/1954,  Volume: 9,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1954.tb01253.x  |  Cited by: 3

George Taylor Harris


Beatrice: A Study in the Creation and Destruction of Value

Published: 7/1992,  Volume: 47,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1992.tb04006.x  |  Cited by: 63

GEORGE P. BAKER

This paper chronicles the history of the Beatrice company from its founding in 1891 as a small creamery, through its growth by acquisition into a diversified consumer and industrial products firm, and its subsequent leveraged buyout and sell‐off. The paper analyzes the value consequences the firm's acquisition and divestiture policies, its organizational strategy, and its governance. The analysis sheds light on a number of issues in organization theory, strategy, and corporate finance, including the sources of value in diversifying aquisitions, the cost of over‐centralization and weak corporate governance, and the mechanisms of value creation in the market for corporate control.


AN EVALUATION OF MUNICIPAL “BANKRUPTCY” LAWS AND PROCEDURES

Published: 12/1973,  Volume: 28,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1973.tb01462.x  |  Cited by: 5

George H. Hempel


A GENERAL GRANT FOR THE STATES: A CONSIDERATION OF ITS OBJECTIVES, JUSTIFICATION, AND EFFECTS*

Published: 9/1971,  Volume: 26,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1971.tb00946.x  |  Cited by: 0

George Paul Roniger


CONVERTIBILITY—THE CURRENT APPROACH*

Published: 5/1955,  Volume: 10,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1955.tb01262.x  |  Cited by: 0

George H. Willis


FINANCING WITH CONVERTIBLE PREFERRED STOCK, 1960–1967

Published: 3/1970,  Volume: 25,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1970.tb00413.x  |  Cited by: 2

George E. Pinches


BRANCH BANKING AND ECONOMIES OF SCALE

Published: 5/1965,  Volume: 20,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1965.tb00212.x  |  Cited by: 227

George J. Benston


A STUDY OF THE BORROWING PATTERNS OF EIGHTEEN CLEVELAND‐TERRITORY, FOURTH FEDERAL RESERVE DISTRICT MEMBER BANKS OVER THE PERIOD, 1961–1965*

Published: 3/1970,  Volume: 25,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1970.tb00427.x  |  Cited by: 0

George Richard Dreese


DISCUSSION

Published: 5/1983,  Volume: 38,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1983.tb02248.x  |  Cited by: 0

GEORGE R. HALL


INTEREST RATES VERSUS INTEREST CEILINGS IN THE ALLOCATION OF CREDIT FLOWS

Published: 5/1967,  Volume: 22,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1967.tb00012.x  |  Cited by: 0

George W. Mitchell


DISCUSSION

Published: 7/1985,  Volume: 40,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1985.tb05003.x  |  Cited by: 1

GEORGE M. CONSTANTINIDES


REVENUE SHARING: PRIORITIES AND POLICY INSTRUMENTS

Published: 5/1968,  Volume: 23,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1968.tb00800.x  |  Cited by: 0

George F. Break


RESIDENTIAL MORTGAGE LENDERS

Published: 3/1952,  Volume: 7,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1952.tb01522.x  |  Cited by: 1

George W. McKinney


AN ANALYSIS AND EVALUATION OF ALTERNATIVE RESERVE REQUIREMENT PLANS

Published: 12/1969,  Volume: 24,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1969.tb01697.x  |  Cited by: 2

George J. Benston


THE THEORETICAL VALUE OF A STOCK RIGHT

Published: 3/1955,  Volume: 10,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1955.tb01560.x  |  Cited by: 0

George Heberton Evans


DISCUSSION

Published: 5/1974,  Volume: 29,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1974.tb03065.x  |  Cited by: 1

George C. Pinches


DISCUSSION

Published: 7/1985,  Volume: 40,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1985.tb04987.x  |  Cited by: 1

GEORGE M. CONSTANTINIDES


Minutes of the Annual Membership Meeting December 29, 1960

Published: 5/1961,  Volume: 16,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1961.tb02833.x  |  Cited by: 0

George E. Hassett


Loan Sales and the Cost of Bank Capital

Published: 6/1988,  Volume: 43,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1988.tb03945.x  |  Cited by: 347

GEORGE G. PENNACCHI

This paper considers a model where banks may improve the returns on loans by monitoring borrowers. Bank regulation, together with competitive deposit and equity financing, can give banks an incentive to sell loans, but the extent of their loan selling is limited by a moral‐hazard problem. A solution is given for the optimal design of the bank‐loan buyer contract that alleviates this moral‐hazard problem. An explanation is also given as to why some banks might buy loans and why loan sales volume has recently increased.


A FURTHER NOTE ON TIME DEPOSIT INTEREST RATES

Published: 3/1959,  Volume: 14,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1959.tb00488.x  |  Cited by: 0

George R. Morrison


Managerial Preference, Asymmetric Information, and Financial Structure

Published: 9/1987,  Volume: 42,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1987.tb03915.x  |  Cited by: 37

GEORGE W. BLAZENKO

If firm performance affects managers' wealth or reputation, preferences of managers dominate firms' financing decisions. When information about real asset investment is symmetric, managers finance exclusively with equity. If managers know more about asset quality than do investors and if managers are sufficiently risk averse, they signal high‐quality projects with debt. Increases in collateral value decrease risky debt use. Increases in interest rates that do not change productive opportunities increase debt use. The explanation for these and further results is based on underpricing of equity and overpricing of debt at the margin.


CAPITAL BUDGETING, CIRCA 1915*

Published: 9/1965,  Volume: 20,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1965.tb02910.x  |  Cited by: 0

George A. Wing


THE FISCAL HISTORY OF VIRGINIA FROM 1860 TO 1870*

Published: 9/1962,  Volume: 17,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1962.tb04325.x  |  Cited by: 0

George Wood Jennings