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 Gender Gap in Housing Returns
Published: 3/10/2023, Volume: 78, Issue: 2 | DOI: 10.1111/jofi.13212 | Cited by: 71
PAUL GOLDSMITH‐PINKHAM, KELLY SHUE
Using detailed transactions data across the United States, we find that single women earn 1.5 percentage points lower annualized returns on housing relative to single men. Forty‐five percent of the gap is explained by transaction timing and location. The remaining gap arises from a 2% gender difference in execution prices at purchase and sale. Consistent with a negotiation channel, women list for less and experience worse negotiated discounts. The gender gap shrinks in tight markets, where negotiation is replaced by quasi‐auctions. Overall, gender differences in housing explain 30% of the gender gap in wealth accumulation for the median household.
Predictably Unequal? The Effects of Machine Learning on Credit Markets
Published: 12/16/2021, Volume: 77, Issue: 1 | DOI: 10.1111/jofi.13090 | Cited by: 492
ANDREAS FUSTER, PAUL GOLDSMITH‐PINKHAM, TARUN RAMADORAI, ANSGAR WALTHER
Innovations in statistical technology in functions including credit‐screening have raised concerns about distributional impacts across categories such as race. Theoretically, distributional effects of better statistical technology can come from greater flexibility to uncover structural relationships or from triangulation of otherwise excluded characteristics. Using data on U.S. mortgages, we predict default using traditional and machine learning models. We find that Black and Hispanic borrowers are disproportionately less likely to gain from the introduction of machine learning. In a simple equilibrium credit market model, machine learning increases disparity in rates between and within groups, with these changes attributable primarily to greater flexibility.
Bad Credit, No Problem? Credit and Labor Market Consequences of Bad Credit Reports
Published: 6/25/2020, Volume: 75, Issue: 5 | DOI: 10.1111/jofi.12954 | Cited by: 97
WILL DOBBIE, PAUL GOLDSMITH‐PINKHAM, NEALE MAHONEY, JAE SONG
We study the financial and labor market impacts of bad credit reports. Using difference‐in‐differences variation from the staggered removal of bankruptcy flags, we show that bankruptcy flag removal leads to economically large increases in credit limits and borrowing. Using administrative tax records linked to personal bankruptcy records, we estimate economically small effects of flag removal on employment and earnings outcomes. We rationalize these contrasting results by showing that, conditional on basic observables, “hidden” bankruptcy flags are strongly correlated with adverse credit market outcomes but have no predictive power for measures of job performance.
Transactions Costs and the Theory of Portfolio Selection
Published: 9/1976, Volume: 31, Issue: 4 | DOI: 10.1111/j.1540-6261.1976.tb01964.x | Cited by: 26
David Goldsmith
INTRODUCTORY REMARKS*
Published: 5/1957, Volume: 12, Issue: 2 | DOI: 10.1111/j.1540-6261.1957.tb04123.x | Cited by: 0
Raymond W. Goldsmith
AN ESTIMATE OF BANK‐ADMINISTERED PERSONAL TRUST FUNDS*
Published: 3/1959, Volume: 14, Issue: 1 | DOI: 10.1111/j.1540-6261.1959.tb00482.x | Cited by: 0
Raymond W. Goldsmith, Eli Shapiro
DISCUSSION
Published: 5/1952, Volume: 7, Issue: 2 | DOI: 10.1111/j.1540-6261.1952.tb00249.x | Cited by: 0
Raymond W. Goldsmith, J. Fred Weston
Trading Costs and Exchange Delisting: The Case of Firms that Voluntarily Move from the American Stock Exchange to the Nasdaq
Published: 12/1997, Volume: 52, Issue: 5 | DOI: 10.1111/j.1540-6261.1997.tb02753.x | Cited by: 26
PAUL CLYDE, PAUL SCHULTZ, MIR ZAMAN
We examine 47 stocks that voluntarily left the American Stock Exchange from 1992 through 1995 and listed on the Nasdaq. We find that both effective and quoted spreads increase by about 100 percent after listing on the Nasdaq. These spread changes are consistent across stocks. In contrast, excess returns are positive when firms announce a switch from The American Stock Exchange to the Nasdaq. We are unable to explain this apparent contradiction.
Calls of Warrants: Timing and Market Reaction
Published: 6/1993, Volume: 48, Issue: 2 | DOI: 10.1111/j.1540-6261.1993.tb04733.x | Cited by: 16
PAUL SCHULTZ
This paper examines the timing of, and reaction to, calls of callable warrants. Three main findings emerge. First, unlike convertible bonds or preferred stock, callable warrants are called almost as soon as possible. Second, there is a negative price reaction of about 3 percent when a call is announced. Finally, at the completion of a call, the stock price rebounds by an average of 7 percent. The total reaction from announcement through completion of the call is a positive excess return of about 4 percent.
Equity Rights Issues and the Efficiency of the UK Stock Market
Published: 9/1979, Volume: 34, Issue: 4 | DOI: 10.1111/j.1540-6261.1979.tb03439.x | Cited by: 116
PAUL MARSH
Corporate Bond Trading Costs: A Peek Behind the Curtain
Published: 4/2001, Volume: 56, Issue: 2 | DOI: 10.1111/0022-1082.00341 | Cited by: 272
Paul Schultz
In this paper, I use institutional corporate bond trade data to estimate transactions costs in the over‐the‐counter bond market. I find average round‐trip trading costs to be about $0.27 per $100 of par value. Trading costs are lower for larger trades. Small institutions pay more to trade than large institutions, all else being equal. Small bond dealers charge more than large ones. I find no evidence that trading costs more for lower‐rated bonds.
Does the Stock Market Overreact to Corporate Earnings Information?
Published: 12/1989, Volume: 44, Issue: 5 | DOI: 10.1111/j.1540-6261.1989.tb02660.x | Cited by: 30
PAUL ZAROWIN
This paper tests whether the stock market overreacts to extreme earnings, by examining firms' stock returns over the 36 months subsequent to extreme earnings years. While the poorest earners do outperform the best earners, the poorest earners are also significantly smaller than the best earners. When poor earners are matched with good earners of equal size, there is little evidence of differential performance. This suggests that size, and not investor overreaction to earnings, is responsible for the “overreaction” phenomenon, the tendency for prior period losers to outperform prior period winners in the subsequent period.
THE CANADIAN DOLLAR, 1948–57*
Published: 3/1960, Volume: 15, Issue: 1 | DOI: 10.1111/j.1540-6261.1960.tb04851.x | Cited by: 0
Paul Wonnacott
Why Do Firms Use Incentives That Have No Incentive Effects?
Published: 8/2004, Volume: 59, Issue: 4 | DOI: 10.1111/j.1540-6261.2004.00674.x | Cited by: 507
Paul Oyer
This paper illustrates why firms might choose to implement stock option plans or other pay instruments that reward “luck.” I consider a model where adjusting compensation contracts is costly and where employees' outside opportunities are correlated with their firms' performance. The model may help to explain the use and recent rise of broad‐based stock option plans, as well as other financial instruments, even when these pay plans have no effect on employees' on‐the‐job behavior. The model suggests that agency theory's often‐overlooked participation constraint may be an important determinant of some common compensation schemes, particularly for employees below the highest executive ranks.
A SUGGESTION FOR THE REVALUATION OF GOLD*
Published: 3/1963, Volume: 18, Issue: 1 | DOI: 10.1111/j.1540-6261.1963.tb01621.x | Cited by: 1
Paul Wonnacott
Convertible Bonds Are Not Called Late
Published: 9/1995, Volume: 50, Issue: 4 | DOI: 10.1111/j.1540-6261.1995.tb04058.x | Cited by: 59
PAUL ASQUITH
Starting with Ingersoll (1977b), the academic literature has repeatedly sought to explain why convertible bonds are called late. The findings here demonstrate there is no call delay to explain. This paper finds that most convertible bonds, given their call protection, are called as soon as possible. For those that are not, there are significant cash flow advantages to delaying. The median call delay for all convertible bonds is less than four months. If a safety premium is desired to assure the conversion value will exceed the call price at the end of call notice period, the median call period is less than a month.
The Choice Between Equity and Debt: An Empirical Study
Published: 3/1982, Volume: 37, Issue: 1 | DOI: 10.1111/j.1540-6261.1982.tb01099.x | Cited by: 519
PAUL MARSH
This empirical study of security issues by UK companies between 1959 and 1974 focuses on how companies select between financing instruments at a given point in time. It throws light on a number of interesting questions. First, it demonstrates that companies are heavily influenced by market conditions and the past history of security prices in choosing between debt and equity. Second, it provides evidence that companies appear to make their choice of financing instrument as if they have target levels of debt in mind. Finally, the results are consistent with the notion that these target debt levels are themselves a function of company size, bankruptcy risk, and asset composition.
The Making of an Investment Banker: Stock Market Shocks, Career Choice, and Lifetime Income
Published: 11/11/2008, Volume: 63, Issue: 6 | DOI: 10.1111/j.1540-6261.2008.01409.x | Cited by: 222
PAUL OYER
I show that stock market shocks have important and lasting effects on the careers of MBAs. Stock market conditions while MBA students are in school have a large effect on whether they go directly to Wall Street upon graduation. Further, starting on Wall Street immediately upon graduation causes a person to be more likely to work there later and to earn, on average, substantially more money. The empirical results suggest that investment bankers are largely “made” by circumstance rather than “born” to work on Wall Street.
Valuation of Underwriting Agreements for UK Rights Issues
Published: 6/1980, Volume: 35, Issue: 3 | DOI: 10.1111/j.1540-6261.1980.tb03493.x | Cited by: 16
PAUL MARSH
Downward‐Sloping Demand Curves, the Supply of Shares, and the Collapse of Internet Stock Prices
Published: 1/10/2008, Volume: 63, Issue: 1 | DOI: 10.1111/j.1540-6261.2008.01318.x | Cited by: 25
PAUL SCHULTZ
Over March and April 2000, Internet stocks lost 56%, or $700 billion. This sudden collapse has been attributed to an increasing supply of shares from lockup expirations and equity offerings. I show that Internet stocks collapsed in this period regardless of whether their lockups expired. Furthermore, daily Internet stock portfolio returns were almost unaffected by the number or dollar amount of lockup expirations that day, or by the amount of stock offered in IPOs or SEOs. Most of the Internet stock decline is explained by poor marketwide returns, particularly for growth stocks.
Discussion
Published: 5/1983, Volume: 38, Issue: 2 | DOI: 10.1111/j.1540-6261.1983.tb02249.x | Cited by: 0
PAUL HALPERN
SOME RECENT CHANGES IN THE EURO‐DOLLAR SYST
Published: 9/1964, Volume: 19, Issue: 3 | DOI: 10.1111/j.1540-6261.1964.tb02866.x | Cited by: 0
Paul Einzig
Pseudo Market Timing and the Long‐Run Underperformance of IPOs
Published: 3/21/2003, Volume: 58, Issue: 2 | DOI: 10.1111/1540-6261.00535 | Cited by: 324
Paul Schultz
Numerous studies document long‐run underperformance by firms following equity offerings. This paper shows that underperformance is very likely to be observed ex‐post in an efficient market. The premise is that more firms issue equity at higher stock prices even though they cannot predict future returns. Ex‐post, issuers seem to time the market because offerings cluster at market peaks. Simulations based on 1973 through 1997 data reveal that when ex‐ante expected abnormal returns are zero, median ex‐post underperformance for equity issuers will be significantly negative in event‐time. Using calendar‐time returns solves the problem.
Personal Income Taxes and the January Effect: Small Firm Stock Returns Before the War Revenue Act of 1917: A Note
Published: 3/1985, Volume: 40, Issue: 1 | DOI: 10.1111/j.1540-6261.1985.tb04954.x | Cited by: 45
PAUL SCHULTZ
This paper tests the tax explanation of the January effect by examining small firm stock returns before the War Revenue Act of 1917. No evidence of a turn‐of‐the‐year effect is found. This paper also extends previous authors' work on the subject to 1918–29. A January effect is found during that period.
COST OF PROVIDING CONSUMER CREDIT: A STUDY OF FOUR MAJOR TYPES OF FINANCIAL INSTITUTIONS*
Published: 9/1962, Volume: 17, Issue: 3 | DOI: 10.1111/j.1540-6261.1962.tb04301.x | Cited by: 0
Paul Smith
INTERRELATED MODELS OF HOUSEHOLD BEHAVIOR: A SUMMARY AND AN EXTENSION
Published: 5/1972, Volume: 27, Issue: 2 | DOI: 10.1111/j.1540-6261.1972.tb00977.x | Cited by: 0
Paul Wachtel
PSYCHOLOGICAL STUDY OF HUMAN JUDGMENT: IMPLICATIONS FOR INVESTMENT DECISION MAKING
Published: 9/1972, Volume: 27, Issue: 4 | DOI: 10.1111/j.1540-6261.1972.tb01311.x | Cited by: 292
Paul Slovic
MONEY, GROWTH, AND THE BALANCE OF PAYMENTS*
Published: 6/1968, Volume: 23, Issue: 3 | DOI: 10.1111/j.1540-6261.1968.tb00833.x | Cited by: 0
Paul Graeser
Stock Splits, Tick Size, and Sponsorship
Published: 2/2000, Volume: 55, Issue: 1 | DOI: 10.1111/0022-1082.00211 | Cited by: 191
Paul Schultz
A traditional explanation for stock splits is that they increase the number of small shareholders who own the stock. A possible reason for the increase is that the minimum bid‐ask spread is wider after a split and brokers have more incentive to promote a stock. I document a large number of small buy orders following Nasdaq and NYSE/AMEX splits during 1993 to 1994. I also find strong evidence that trading costs increase, and weak evidence that costs of market making decline following splits. This is consistent with splits acting as an incentive to brokers to promote stocks.
THE UPWARD SLOPING IS CURVE AND THE CONTROL OF INCOME AND THE BALANCE OF PAYMENTS
Published: 6/1974, Volume: 29, Issue: 3 | DOI: 10.1111/j.1540-6261.1974.tb01493.x | Cited by: 5
Paul Burrows
A SURROGATIVE MEASURE OF BUSINESS CONFIDENCE AND ITS RELATION TO STOCK PRICES
Published: 12/1955, Volume: 10, Issue: 4 | DOI: 10.1111/j.1540-6261.1955.tb01297.x | Cited by: 11
Paul G. Darling
COMMERCIAL BANKING IN THE SIXTIES
Published: 5/1961, Volume: 16, Issue: 2 | DOI: 10.1111/j.1540-6261.1961.tb02819.x | Cited by: 0
Paul S. Nadler
THE AVAILABILITY OF CAPITAL TO SMALL BUSINESS IN CALIFORNIA IN 1945–1946
Published: 10/1947, Volume: 2, Issue: 2 | DOI: 10.1111/j.1540-6261.1947.tb00796.x | Cited by: 3
Paul F. Wendt
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
STIMULATING BANK COMPETITION THROUGH REGULATORY ACTION
Published: 3/1965, Volume: 20, Issue: 1 | DOI: 10.1111/j.1540-6261.1965.tb00180.x | Cited by: 4
Paul M. Horvitz
Crowding Out and the Informativeness of Security Prices
Published: 9/1993, Volume: 48, Issue: 4 | DOI: 10.1111/j.1540-6261.1993.tb04763.x | Cited by: 22
JONATHAN M. PAUL
Individual investors trade less agressively on any particular piece of information as more investors observe it. The trades of the new investors observing a piece of information “crowd out” some of the trades of the old investors who observe that same piece of information. This paper shows that when traders are risk averse, these crowding out effects lead the proportions of traders who choose to observe one signal versus another to differ from the proportions that maximize the informativeness of prices.
PREMIUMS ON CONVERTIBLE BONDS: COMMENT
Published: 9/1970, Volume: 25, Issue: 4 | DOI: 10.1111/j.1540-6261.1970.tb00566.x | Cited by: 3
Paul D. Cretien
MONETARY POLICY AND FLUCTUATIONS IN THE EXTENSION OF TRADE CREDIT*
Published: 12/1962, Volume: 17, Issue: 4 | DOI: 10.1111/j.1540-6261.1962.tb04349.x | Cited by: 0
Paul Edwin Junk
OPTIMUM RATE ON TIME DEPOSITS*
Published: 12/1962, Volume: 17, Issue: 4 | DOI: 10.1111/j.1540-6261.1962.tb04336.x | Cited by: 0
Paul F. Smith
COMPETITIVE INFORMATION IN THE STOCK MARKET: AN EMPIRICAL STUDY OF EARNINGS, DIVIDENDS AND ANALYSTS' FORECASTS*
Published: 5/1976, Volume: 31, Issue: 2 | DOI: 10.1111/j.1540-6261.1976.tb01911.x | Cited by: 24
Paul A. Griffin
LARGE‐SCALE COMMUNITY DEVELOPMENT
Published: 5/1967, Volume: 22, Issue: 2 | DOI: 10.1111/j.1540-6261.1967.tb00008.x | Cited by: 1
Paul F. Wendt
DISCUSSION
Published: 5/1969, Volume: 24, Issue: 2 | DOI: 10.1111/j.1540-6261.1969.tb01682.x | Cited by: 0
Paul S. Nadler
PRICING POLICIES ON CONSUMER LOANS AT COMMERCIAL BANKS
Published: 5/1970, Volume: 25, Issue: 2 | DOI: 10.1111/j.1540-6261.1970.tb00677.x | Cited by: 7
Paul F. Smith
WHAT SHOULD WE TEACH IN AN INVESTMENTS COURSE?
Published: 5/1966, Volume: 21, Issue: 2 | DOI: 10.1111/j.1540-6261.1966.tb00242.x | Cited by: 3
Paul F. Wendt
THE PRESENT STATUS OF MONETARY AND FISCAL POLICY
Published: 3/1950, Volume: 5, Issue: 1 | DOI: 10.1111/j.1540-6261.1950.tb02468.x | Cited by: 1
Paul W. McCracken
Structural Disequilibrium and the Banking Act of 1980
Published: 5/1982, Volume: 37, Issue: 2 | DOI: 10.1111/j.1540-6261.1982.tb03560.x | Cited by: 0
PAUL F. SMITH
THE THEORY AND PRACTICE OF NONPAR BANKING*
Published: 12/1968, Volume: 23, Issue: 5 | DOI: 10.1111/j.1540-6261.1968.tb00333.x | Cited by: 0
Paul F. Jessup
DOMESTIC EXPANSION AND EXTERNAT., RESPONSIBILITIES
Published: 5/1971, Volume: 26, Issue: 2 | DOI: 10.1111/j.1540-6261.1971.tb00894.x | Cited by: 0
Paul A. Volcker
VALUATION, LEVERAGE AND THE COST OF CAPITAL IN THE CASE OF DEPRECIABLE ASSETS: COMMENT
Published: 3/1975, Volume: 30, Issue: 1 | DOI: 10.1111/j.1540-6261.1975.tb03173.x | Cited by: 0
Ronda S. Paul