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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Free Cash Flow, Shareholder Value, and the Undistributed Profits Tax of 1936 and 1937
Published: 12/1994, Volume: 49, Issue: 5 | DOI: 10.1111/j.1540-6261.1994.tb04779.x | Cited by: 32
WILLIAM G. CHRISTIE, VIKRAM NANDA
In 1936, the Federal Government unexpectedly imposed a tax on undistributed corporate profits. Despite the direct costs of the tax, its announcement produced a positive revaluation of corporate equity, particularly among lower‐payout firms. We interpret this as evidence of a divergence between managerial and shareholder preferences regarding dividend payout policies, consistent with the presence of agency costs. We also find that despite the incentives created by the tax, the actual growth in dividends during 1936 was lower among firms judged more likely to be subject to higher agency costs after controlling for liquidity, debt, and the growth in earnings.
Why do NASDAQ Market Makers Avoid Odd‐Eighth Quotes?
Published: 12/1994, Volume: 49, Issue: 5 | DOI: 10.1111/j.1540-6261.1994.tb04782.x | Cited by: 392
WILLIAM G. CHRISTIE, PAUL H. SCHULTZ
The NASDAQ multiple dealer market is designed to produce narrow bid‐ask spreads through the competition for order flow among individual dealers. However, we find that odd‐eighth quotes are virtually nonexistent for 70 of 100 actively traded NASDAQ securities, including Apple Computer and Lotus Development. The lack of odd‐eighth quotes cannot be explained by the negotiation hypothesis of Harris (1991), trading activity, or other variables thought to impact spreads. This result implies that the inside spread for a large number of NASDAQ stocks is at least $0.25 and raises the question of whether NASDAQ dealers implicitly collude to maintain wide spreads.
Why Did NASDAQ Market Makers Stop Avoiding Odd‐Eighth Quotes?
Published: 12/1994, Volume: 49, Issue: 5 | DOI: 10.1111/j.1540-6261.1994.tb04783.x | Cited by: 154
WILLIAM G. CHRISTIE, JEFFREY H. HARRIS, PAUL H. SCHULTZ
On May 26 and 27, 1994 several national newspapers reported the findings of Christie and Schultz (1994) who cannot reject the hypothesis that market makers of active NASDAQ stocks implicitly colluded to maintain spreads of at least $0.25 by avoiding odd‐eighth quotes. On May 27, dealers in Amgen, Cisco Systems, and Microsoft sharply increased their use of odd‐eighth quotes, and mean inside and effective spreads fell nearly 50 percent. This pattern was repeated for Apple Computer the following trading day. Using individual dealer quotes for Apple and Microsoft, we find that virtually all dealers moved in unison to adopt odd‐eighth quotes.
Nasdaq Trading Halts: The Impact of Market Mechanisms on Prices, Trading Activity, and Execution Costs
Published: 6/2002, Volume: 57, Issue: 3 | DOI: 10.1111/1540-6261.00466 | Cited by: 102
William G. Christie, Shane A. Corwin, Jeffrey H. Harris
We study the effects of alternative halt and reopening procedures on prices, transaction costs, and trading activity for a sample of news‐related trading halts on Nasdaq. For intraday halts that reopen after only a five‐minute quotation period, inside quoted spreads more than double following halts and volatility increases to more than nine times normal levels. In contrast, halts that reopen the following day with a longer 90‐minute quotation period are associated with insignificant spread effects and significantly dampened volatility effects. These results are consistent with the hypothesis that increased information transmission during the halt results in reduced posthalt uncertainty.
Effects of Market Reform on the Trading Costs and Depths of Nasdaq Stocks
Published: 2/1999, Volume: 54, Issue: 1 | DOI: 10.1111/0022-1082.00097 | Cited by: 237
Michael J. Barclay, William G. Christie, Jeffrey H. Harris, Eugene Kandel, Paul H. Schultz
The relative merits of dealer versus auction markets have been a subject of significant and sometimes contentious debate. On January 20, 1997, the Securities and Exchange Commission began implementing reforms that would permit the public to compete directly with Nasdaq dealers by submitting binding limit orders. Additionally, superior quotes placed by Nasdaq dealers in private trading venues began to be displayed in the Nasdaq market. We measure the impact of these new rules on various measures of performance, including trading costs and depths. Our results indicate that quoted and effective spreads fell dramatically without adversely affecting market quality.
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.
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 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
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: 1189
William Margrabe
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
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
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: 192
William Poole
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.
COUNTERSPECULATION, AUCTIONS, AND COMPETITIVE SEALED TENDERS
Published: 3/1961, Volume: 16, Issue: 1 | DOI: 10.1111/j.1540-6261.1961.tb02789.x | Cited by: 5077
William Vickrey
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.
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
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
A GENERAL CLASS OF THREE‐PARAMETER RISK MEASURES: COMMENT
Published: 3/1975, Volume: 30, Issue: 1 | DOI: 10.1111/j.1540-6261.1975.tb03176.x | Cited by: 1
William H. Jean
Books Recieved
Published: 9/1958, Volume: 13, Issue: 3 | DOI: 10.1111/j.1540-6261.1958.tb04214.x | Cited by: 1
Clyde William Phelps
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
BOOKS RECEIVED
Published: 12/1960, Volume: 15, Issue: 4 | DOI: 10.1111/j.1540-6261.1960.tb02785.x | Cited by: 0
Clyde William Phelps
BOOKS RECEIVED
Published: 9/1959, Volume: 14, Issue: 3 | DOI: 10.1111/j.1540-6261.1959.tb00136.x | Cited by: 0
Clyde William Phelps
LARGE MANUFACTURING CORPORATIONS AS SUPPLIERS OF FUNDS TO THE UNITED STATES GOVERNMENT SECURITIES MARKET
Published: 12/1958, Volume: 13, Issue: 4 | DOI: 10.1111/j.1540-6261.1958.tb04218.x | Cited by: 6
William J. Frazer
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
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
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
DISCUSSION
Published: 5/1970, Volume: 25, Issue: 2 | DOI: 10.1111/j.1540-6261.1970.tb00519.x | Cited by: 5
William F. Sharpe
BOOKS RECEIVED
Published: 12/1955, Volume: 10, Issue: 4 | DOI: 10.1111/j.1540-6261.1955.tb01309.x | Cited by: 1
Clyde William Phelps
BOOKS RECEIVED
Published: 3/1956, Volume: 11, Issue: 1 | DOI: 10.1111/j.1540-6261.1956.tb00695.x | Cited by: 1
Clyde William Phelps
GROUP ACCUMULATION THROUGH EQUITIES FOR PENSIONS
Published: 5/1962, Volume: 17, Issue: 2 | DOI: 10.1111/j.1540-6261.1962.tb04269.x | Cited by: 0
William M. Anderson
REPLY
Published: 6/1973, Volume: 28, Issue: 3 | DOI: 10.1111/j.1540-6261.1973.tb01396.x | Cited by: 1
William E. Gibson
A THEORETICAL AND EMPIRICAL INVESTIGATION OF DEBT MATURITY TIMING AND YIELD CURVE SLOPE ANALYSIS*
Published: 6/1973, Volume: 28, Issue: 3 | DOI: 10.1111/j.1540-6261.1973.tb01401.x | Cited by: 0
William C. Handorf
SUBOPTIMIZATION IN MEAN‐VARIANCE EFFICIENT SET ANALYSIS
Published: 5/1973, Volume: 28, Issue: 2 | DOI: 10.1111/j.1540-6261.1973.tb01783.x | Cited by: 0
William A. Remaley
REPLY
Published: 12/1973, Volume: 28, Issue: 5 | DOI: 10.1111/j.1540-6261.1973.tb01467.x | Cited by: 0
William L. Silber
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
CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK*
Published: 9/1964, Volume: 19, Issue: 3 | DOI: 10.1111/j.1540-6261.1964.tb02865.x | Cited by: 4318
William F. Sharpe
BOOKS RECEIVED
Published: 12/1952, Volume: 7, Issue: 4 | DOI: 10.1111/j.1540-6261.1952.tb02494.x | Cited by: 0
Clyde William Phelps
BOOKS RECEIVED
Published: 5/1954, Volume: 9, Issue: 2 | DOI: 10.1111/j.1540-6261.1954.tb01227.x | Cited by: 0
Clyde William Phelps
BOOKS RECEIVED
Published: 3/1953, Volume: 8, Issue: 1 | DOI: 10.1111/j.1540-6261.1953.tb01146.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 INTERNATIONAL ECONOMIC POSITION OF MEXICO, 1900 TO 1949*
Published: 12/1952, Volume: 7, Issue: 4 | DOI: 10.1111/j.1540-6261.1952.tb02490.x | Cited by: 0
John William Simpson
DISCUSSION
Published: 5/1973, Volume: 28, Issue: 2 | DOI: 10.1111/j.1540-6261.1973.tb01794.x | Cited by: 0
William F. Hellmuth
OPTIMAL CONSUMPTION AND PORTFOLIO POLICIES*
Published: 3/1974, Volume: 29, Issue: 1 | DOI: 10.1111/j.1540-6261.1974.tb00051.x | Cited by: 0
William F. Rentz
BOOKS RECEIVED
Published: 12/1953, Volume: 8, Issue: 4 | DOI: 10.1111/j.1540-6261.1953.tb01197.x | Cited by: 0
Clyde William Phelps
DISCUSSION
Published: 5/1970, Volume: 25, Issue: 2 | DOI: 10.1111/j.1540-6261.1970.tb00517.x | Cited by: 0
William L. Silber
The Geometric Mean and Stochastic Dominance
Published: 3/1980, Volume: 35, Issue: 1 | DOI: 10.1111/j.1540-6261.1980.tb03477.x | Cited by: 38
WILLIAM H. JEAN
AN ANALYSIS OF THE MONETARY AND BANKING SYSTEM OF NIGERIA*
Published: 9/1962, Volume: 17, Issue: 3 | DOI: 10.1111/j.1540-6261.1962.tb04322.x | Cited by: 0
William Okefie Uzoage