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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Taxes and the Theory of Trade Debt

Published: 9/1984,  Volume: 39,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1984.tb03900.x  |  Cited by: 48

IVAN E. BRICK, WILLIAM K. H. FUNG

In this paper, we show that taxes motivate the flow of trade credit without involving the assumption of credit market imperfections. The direction of trade credit flow depends on the distribution of marginal tax rates among buyers and sellers. In equilibrium, the trade credit decision follows a tax‐induced clientele on both the supply and demand side.


Hedge Funds: Performance, Risk, and Capital Formation

Published: 7/19/2008,  Volume: 63,  Issue: 4  |  DOI: 10.1111/j.1540-6261.2008.01374.x  |  Cited by: 485

WILLIAM FUNG, DAVID A. HSIEH, NARAYAN Y. NAIK, TARUN RAMADORAI

We use a comprehensive data set of funds‐of‐funds to investigate performance, risk, and capital formation in the hedge fund industry from 1995 to 2004. While the average fund‐of‐funds delivers alpha only in the period between October 1998 and March 2000, a subset of funds‐of‐funds consistently delivers alpha. The alpha‐producing funds are not as likely to liquidate as those that do not deliver alpha, and experience far greater and steadier capital inflows than their less fortunate counterparts. These capital inflows attenuate the ability of the alpha producers to continue to deliver alpha in the future.


Pricing New Corporate Bond Issues: An Analysis of Issue Cost and Seasoning Effects

Published: 7/1986,  Volume: 41,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1986.tb04525.x  |  Cited by: 36

W. K. H. FUNG, ANDREW RUDD

The pricing of new corporate bond issues is examined, with particular emphasis on the seasoning effect and the cost of underwriting. Considerable attention is paid to some special features of the corporate bond market, including the use of actual trader quotes so as to accurately measure holding period returns. Our results suggest that the cost of issuing corporate bonds is less than previously reported.


INTEREST RATES, PORTFOLIO BEHAVIOR, AND MARKETABLE GOVERNMENT SECURITIES

Published: 3/1972,  Volume: 27,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1972.tb00616.x  |  Cited by: 4

William T. Terrell, William J. Frazer


Interest Rates, Uncertainty and the Livingston Data

Published: 6/1981,  Volume: 36,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1981.tb00651.x  |  Cited by: 30

WILLIAM A. BOMBERGER, WILLIAM J. FRAZER

The observed relationship between the standard deviation of forecasts and past forecast errors as found in the Livingston survey suggests the interpretation of the standard deviation as a measure of inflation uncertainty. The mean and the standard deviation for the inflation rate forecast found in the Livingston survey, furthermore, are used as regressors in a reduced‐form interest rate equation. The results indicate a large negative effect of such uncertainty on interest rates. The inclusion of the uncertainty measure and commonly omitted lagged values of all variables in our analysis of data leads to more theoretically plausible estimated effects of money growth and expected inflation on interest rates than do standard estimates.


Tests of Two Models for Valuing Call Options on Stocks with Dividends

Published: 12/1982,  Volume: 37,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1982.tb03614.x  |  Cited by: 18

WILLIAM STERK

Roll has recently formulated an option pricing model which allows dividend payments on the underlying stock. This paper compares the performance of the exact Roll model with a modified, but inexact, Black‐Scholes model. The results indicate that the Roll model prices are significantly closer to actual market prices.


THE RELATIONSHIP OF MONETARY DECELERATIONS TO BUSINESS CYCLE PEAKS: ANOTHER LOOK AT THE EVIDENCE

Published: 6/1975,  Volume: 30,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1975.tb01844.x  |  Cited by: 1

William Poole


MONETARY AND DEBT‐MANAGEMENT POLICIES, 1953–55*

Published: 3/1959,  Volume: 14,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1959.tb00499.x  |  Cited by: 0

William Pigott


COMMERCIAL BANK REGULATION, STRUCTURE, AND PERFORMANCE*

Published: 6/1975,  Volume: 30,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1975.tb01872.x  |  Cited by: 0

William Jackson


THE STATUS AND PROSPECTS OF VARIABLE ANNUITIES*

Published: 5/1962,  Volume: 17,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1962.tb04268.x  |  Cited by: 0

William Freund


COUNTERSPECULATION, AUCTIONS, AND COMPETITIVE SEALED TENDERS

Published: 3/1961,  Volume: 16,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1961.tb02789.x  |  Cited by: 4987

William Vickrey


THE THEORETICAL VALUE OF A STOCK RIGHT: A COMMENT

Published: 9/1956,  Volume: 11,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1956.tb00112.x  |  Cited by: 0

William Beranek


COMMERCIAL BANK RESERVE MANAGEMENT IN A STOCHASTIC MODEL: IMPLICATIONS FOR MONETARY POLICY

Published: 12/1968,  Volume: 23,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1968.tb00316.x  |  Cited by: 177

William Poole


DISCUSSION

Published: 5/1980,  Volume: 35,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1980.tb02168.x  |  Cited by: 0

William Marshall


THE VALUE OF AN OPTION TO EXCHANGE ONE ASSET FOR ANOTHER

Published: 3/1978,  Volume: 33,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1978.tb03397.x  |  Cited by: 1154

William Margrabe


Burnsian Monetary Policy: Eight Years of Progress?

Published: 5/1979,  Volume: 34,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1979.tb02111.x  |  Cited by: 6

WILLIAM POOLE


Safety Transformation and the Structure of the Financial System

Published: 8/10/2020,  Volume: 75,  Issue: 6  |  DOI: 10.1111/jofi.12967  |  Cited by: 47

WILLIAM DIAMOND

This paper studies how a financial system that is organized to efficiently create safe assets responds to macroeconomic shocks. Financial intermediaries face a cost of bearing risk, so they choose the least risky portfolio that backs their issuance of riskless deposits: a diversified pool of nonfinancial firms' debt. Nonfinancial firms choose their capital structure to exploit the resulting segmentation between debt and equity markets. Increased safe asset demand yields larger and riskier intermediaries and more levered firms. Quantitative easing reduces the size and riskiness of intermediaries and can decrease firm leverage, despite reducing borrowing costs at the zero lower bound.


MONETARY POLICY EFFECTIVENESS: THE CASE OF A POSITIVELY SLOPED I S CURVE

Published: 12/1971,  Volume: 26,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1971.tb01749.x  |  Cited by: 7

William L. Silber


MONETARY POLICY AND INTERNATIONAL PAYMENTS*

Published: 3/1963,  Volume: 18,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1963.tb01617.x  |  Cited by: 0

William McChesney Martin


POSTWAR COMMERCIAL BANK LENDING POLICIES

Published: 6/1949,  Volume: 4,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1949.tb02338.x  |  Cited by: 0

William E. Dunkman


BOOKS RECEIVED

Published: 3/1956,  Volume: 11,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1956.tb00695.x  |  Cited by: 1

Clyde William Phelps


MONETARY CONTROL AND THE DISTRIBUTION OF MONEY*

Published: 9/1964,  Volume: 19,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1964.tb02876.x  |  Cited by: 0

William G. Dewald


AN APPRAISAL OF THE OHIO AXLE‐MILE TRUCK TAX*

Published: 3/1958,  Volume: 13,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1958.tb04183.x  |  Cited by: 0

William Joseph Weiskopf


BOOKS RECEIVED

Published: 3/1959,  Volume: 14,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1959.tb00503.x  |  Cited by: 0

Clyde William Phelps


A THEORETICAL AND STATISTICAL ANALYSIS OF THE DETERMINANTS OF THE CURRENCY‐DEMAND DEPOSIT RATIO FOR THE UNITED STATES, 1952 to 1971*

Published: 9/1975,  Volume: 30,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1975.tb01033.x  |  Cited by: 0

William E. Becker


THE TERM STRUCTURE OF INTEREST RATES, PORTFOLIO THEORY, AND THE ROLE OF LENGTH TO MATURITY IN SELECTING UNITED STATES GOVERNMENT SECURITIES*

Published: 12/1970,  Volume: 25,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1970.tb00889.x  |  Cited by: 0

William T. Terrell


DEPRECIATION AND THE 1954 INTERNAL REVENUE CODE

Published: 9/1955,  Volume: 10,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1955.tb01279.x  |  Cited by: 1

William F. Hellmuth


AN APPRAISAL OF THE SOURCES AND USES OF FUNDS: APPPROACH TO THE ANALYSIS OF FINANCIAL MARKETS

Published: 5/1958,  Volume: 13,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1958.tb04194.x  |  Cited by: 1

William C. Freund


TAX LAW, LOCK‐INS, AND BANK PORTFOLIO CHOICE*

Published: 12/1965,  Volume: 20,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1965.tb02935.x  |  Cited by: 0

William F. Beazer


BOOKS RECEIVED

Published: 9/1955,  Volume: 10,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1955.tb01294.x  |  Cited by: 0

Clyde William Phelps


PRICE‐EXPECTATIONS EFFECTS ON INTEREST RATES

Published: 3/1970,  Volume: 25,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1970.tb00410.x  |  Cited by: 42

William E. Gibson


THE SECULAR TREND OF INCOME VELOCITY IN JAPAN, 1879–1940*

Published: 9/1963,  Volume: 18,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1963.tb02860.x  |  Cited by: 0

William C. Hoekendorf


WORLD GOLD PRODUCTION AND THE MONEY SUPPLY

Published: 9/1963,  Volume: 18,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1963.tb02849.x  |  Cited by: 0

William A. Carter


COMPETITION FOR DEPOSITS BETWEEN BANK AND NONBANK FINANCIAL INTERMEDIARIES*

Published: 12/1967,  Volume: 22,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1967.tb00312.x  |  Cited by: 0

William S. Townsend


MANAGEMENT PROBLEMS OF BANK CHARGE ACCOUNT PLANS*

Published: 3/1957,  Volume: 12,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1957.tb04109.x  |  Cited by: 0

William H. Fichthorn


MACROECONOMIC MODELS WITH A BEHAVIORAL MONEY SUPPLY FUNCTION*

Published: 3/1969,  Volume: 24,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1969.tb00352.x  |  Cited by: 0

William Randolph Hosek


BOOKS RECEIVED

Published: 9/1960,  Volume: 15,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1960.tb01615.x  |  Cited by: 0

Clyde William Phelps


THE CAPITAL ACCOUNT IN THE UNITED STATES BALANCE OF PAYMENTS*

Published: 9/1968,  Volume: 23,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1968.tb00854.x  |  Cited by: 0

William H. Branson


DISCUSSION

Published: 5/1970,  Volume: 25,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1970.tb00519.x  |  Cited by: 4

William F. Sharpe


BOOKS RECEIVED

Published: 9/1954,  Volume: 9,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1954.tb01242.x  |  Cited by: 0

Clyde William Phelps


THE FEDERAL RESERVE SYSTEM';S “BILLS ONLY” POLICY*

Published: 3/1964,  Volume: 19,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1964.tb00757.x  |  Cited by: 0

William Eli Whitesell


TECHNOLOGY, CAPITAL AND GOVERNMENT FISCAL POLICY*

Published: 12/1952,  Volume: 7,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1952.tb02489.x  |  Cited by: 0

William E. Schenk


Marketmaker Behavior in an Auction Market: An Analysis of Scalpers in Futures Markets

Published: 9/1984,  Volume: 39,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1984.tb03886.x  |  Cited by: 87

WILLIAM L. SILBER

This paper focuses on the role of scalpers as marketmakers in the competitive auction of futures exchanges. We use transactions data of a representative scalper to identify the source of scalper earnings. We find that scalpers provide liquidity services to incoming market orders, thereby facilitating commercial hedging. Scalper earnings are positively related to the bid‐asked spread and negatively related to the length of time a position is held.


BOOKS RECEIVED

Published: 3/1955,  Volume: 10,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1955.tb01573.x  |  Cited by: 0

Clyde William Phelps


INVESTMENT BEHAVIOR OF MANUFACTURERS IN THE SOUTHEAST, 1951–63*

Published: 3/1969,  Volume: 24,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1969.tb00360.x  |  Cited by: 0

William M. Whitakzr


The Harmonic Mean and Other Necessary Conditions for Stochastic Dominance

Published: 6/1984,  Volume: 39,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1984.tb02325.x  |  Cited by: 14

WILLIAM H. JEAN

In this paper a systematic procedure is developed to determine necessary conditions for all degrees of stochastic dominance. The previously known necessary conditions are specified as to which degrees of dominance they belong, and two new necessary conditions, a ranking of harmonic means and a ranking of algebraic combinations of the first three moments, are derived.


INSTALMENT LENDING BY COMMERCIAL BANKS: A COST AND YIELD ANALYSIS*

Published: 3/1971,  Volume: 26,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1971.tb00606.x  |  Cited by: 0

William Carl Gallups


MONETARY CHANNELS AND THE RELATIVE IMPORTANCE OF MONEY SUPPLY AND BANK PORTFOLIOS

Published: 3/1969,  Volume: 24,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1969.tb00344.x  |  Cited by: 2

William L. Silber


Hostility in Takeovers: In the Eyes of the Beholder?

Published: 12/2000,  Volume: 55,  Issue: 6  |  DOI: 10.1111/0022-1082.00301  |  Cited by: 689

G. William Schwert

This paper examines whether hostile takeovers can be distinguished from friendly takeovers, empirically, based on accounting and stock performance data. Much has been made of this distinction in both the popular and the academic literature, where gains from hostile takeovers result from replacing incumbent managers and gains from friendly takeovers result from strategic synergies. Alternatively, hostility could reflect strategic choices made by the bidder or the target. Empirical tests show that most deals described as hostile in the press are not distinguishable from friendly deals in economic terms, except that hostile transactions involve publicity as part of the bargaining process.


INVESTMENT CRITERIA OF OPEN‐END INVESTMENT COMPANIES: AN EMPIRICAL INVESTIGATION*

Published: 9/1967,  Volume: 22,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1967.tb02991.x  |  Cited by: 0

William W. Reints