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 Determinants of the Treasury Security Yield Curve

Published: 12/01/1981   |   DOI: 10.1111/j.1540-6261.1981.tb01079.x

V. VANCE ROLEY

Investors' security demands and two points on the yield curve are jointly determined using a disaggregated structural model of the U.S. Treasury securities market. The empirical results indicate that the structural model is capable of accurately explaining Treasury yields and that changes in a variety of nonyield variables affect the yield curve. Among these nonyield variables are Treasury security supplies, which are found to have significant but somewhat volatile impacts depending on investors' wealth flows. The within‐sample predictions from the structural model are also compared to those of a naive model.


The Reaction of Stock Prices to Unanticipated Changes in Money: A Note

Published: 09/01/1983   |   DOI: 10.1111/j.1540-6261.1983.tb02303.x

DOUGLAS K. PEARCE, V. VANCE ROLEY


Firm Characteristics, Unanticipated Inflation, and Stock Returns

Published: 09/01/1988   |   DOI: 10.1111/j.1540-6261.1988.tb02615.x

DOUGLAS K. PEARCE, V. VANCE ROLEY

This paper re‐examines the effects of nominal contracts on the relationship between unanticipated inflation and an individual stock's rate of return. This study differs in three main ways from previous research. First, announced inflation data are used to examine the effects of unanticipated inflation. Second, a different specification is used to obtain more efficient estimates. Third, additional nominal contracts are considered. The empirical results indicate that time‐varying firm characteristics related to inflation predominately determine the effect of unanticipated inflation on a stock's rate of return. A firm's debt‐equity ratio appears to be particularly important in determining the response.