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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Tax‐Induced Trading of Equity Securities: Evidence from the ADR Market
Published: 7/15/2003, Volume: 58, Issue: 4 | DOI: 10.1111/1540-6261.00578 | Cited by: 36
Sandra Renfro Callaghan, Christopher B. Barry
We examine ex‐dividend date trading of American Depositary Receipts (ADRs) using a sample of 1,043 dividends over the period 1988 to 1995. ADR dividends are often subject to foreign withholding taxes, creating incentives for certain investors to avoid the distribution. ADRs exhibit negative abnormal ex‐dividend day returns, and their prices behave consistently with their related withholding taxes. Abnormal trading volume for taxable issues exceeds 130 percent and 300 percent of normal volume on the cum‐ and ex‐dates, respectively. Abnormal volume is an increasing function of foreign withholding tax rates and decreasing function of transactions costs. This abnormal ex‐date trading activity is consistent with tax‐motivated trading.
The Timing of Option Repricing
Published: 8/2004, Volume: 59, Issue: 4 | DOI: 10.1111/j.1540-6261.2004.00675.x | Cited by: 56
Sandra Renfro Callaghan, P. Jane Saly, Chandra Subramaniam
We investigate whether executive stock option repricings are systematically timed to coincide with favorable movements in the company's stock price. For a sample of 236 repricing events, we observe sharp increases in stock price in the 20‐day period following the repricing date. In addition, repricing dates tend to either precede the release of good news or follow the release of bad news in the quarterly earnings announcements. Since information about stock option repricing is not generally released to the public around the repricing date, these findings suggest that CEOs opportunistically manage the timing of the option repricing date.
THE DETERMINANTS OF SUPPLY AND DEMAND FOR CERTIFICATES OF DEPOSIT*
Published: 3/1971, Volume: 26, Issue: 1 | DOI: 10.1111/j.1540-6261.1971.tb00604.x | Cited by: 0
Sandra B. Cohan
Entrepreneurship and Bank Credit Availability
Published: 12/2002, Volume: 57, Issue: 6 | DOI: 10.1111/1540-6261.00513 | Cited by: 816
Sandra E. Black, Philip E. Strahan
The literature is divided on the expected effects of increased competition and consolidation in the financial sector on the supply of credit to relationship borrowers. This paper tests whether policy changes fostering competition and consolidation in U.S. banking helped or harmed entrepreneurs. We find that the rate of new incorporations increases following deregulation of branching restrictions, and that deregulation reduces the negative effect of concentration on new incorporations. We also find the formation of new incorporations increases as the share of small banks decreases, suggesting that diversification benefits of size outweigh the possible comparative advantage small banks may have in forging relationships.
EXTERNAL CURRENCY MARKET EQUILIBRIUM AND ITS IMPLICATIONS FOR REGULATION OF THE EUROCURRENCY MARKET††
Published: 5/1983, Volume: 38, Issue: 2 | DOI: 10.1111/j.1540-6261.1983.tb02250.x | Cited by: 0
SANDRA SCHICKELE, DENNIS E. LOGUE, LEMMA W. SENBET
Merger Negotiations with Stock Market Feedback
Published: 7/18/2014, Volume: 69, Issue: 4 | DOI: 10.1111/jofi.12151 | Cited by: 118
SANDRA BETTON, B. ESPEN ECKBO, REX THOMPSON, KARIN S. THORBURN
Do preoffer target stock price runups increase bidder takeover costs? We present model‐based tests of this issue assuming runups are caused by signals that inform investors about potential takeover synergies. Rational deal anticipation implies a relation between target runups and markups (offer value minus runup) that is greater than minus one‐for‐one and inherently nonlinear. If merger negotiations force bidders to raise the offer with the runup—a costly feedback loop where bidders pay twice for anticipated target synergies—markups become strictly increasing in runups. Large‐sample tests support rational deal anticipation in runups while rejecting the costly feedback loop.
On the Origins of Risk‐Taking in Financial Markets
Published: 8/28/2017, Volume: 72, Issue: 5 | DOI: 10.1111/jofi.12521 | Cited by: 65
SANDRA E. BLACK, PAUL J. DEVEREUX, PETTER LUNDBORG, KAVEH MAJLESI
Financial investment behavior is highly correlated between parents and their children. Using Swedish data, we find that the decision of adoptees to hold equities is associated with the behavior of both biological and adoptive parents, implying a role for both genetic and environmental influences. However, we find that nurture has a stronger influence on the share of financial assets invested in equities and on portfolio volatility, suggesting that financial risk‐taking is substantially environmentally determined. The parental investment variables substantially increase the explanatory power of cross‐sectional regressions and so may play an important role in understanding cross‐sectional heterogeneity in investment behavior.