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.


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


COUNTERSPECULATION, AUCTIONS, AND COMPETITIVE SEALED TENDERS

Published: 3/1961,  Volume: 16,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1961.tb02789.x  |  Cited by: 4991

William Vickrey


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


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.


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


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: 1155

William Margrabe


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 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


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.


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


CAPITALIZATION OF THE PROPERTY TAX: AN EMPIRICAL STUDY*

Published: 9/1971,  Volume: 26,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1971.tb00939.x  |  Cited by: 0

William B. Conway


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


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


ANALYSIS AND ADMINISTRATION OF CONVENIENCE‐AND‐ADVANTAGE LICENSING IN THE SMALL‐LOAN INDUSTRY*

Published: 6/1971,  Volume: 26,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1971.tb01742.x  |  Cited by: 1

William Lee Sartoris


Capital Asset Prices with and without Negative Holdings

Published: 6/1991,  Volume: 46,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1991.tb02671.x  |  Cited by: 152

WILLIAM F. SHARPE


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


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


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


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


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


DISCUSSION

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

William F. Sharpe


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


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: 4032

William F. Sharpe


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


JUNIOR MORTGAGES IN REAL ESTATE FINANCE A CASE STUDY

Published: 3/1956,  Volume: 11,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1956.tb00685.x  |  Cited by: 2

William N. Kinnard


LIFE REINSURANCE POOLS

Published: 3/1956,  Volume: 11,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1956.tb00686.x  |  Cited by: 1

William M. Howard


The Issue Decision of Manager‐Owners under Information Asymmetry

Published: 12/1987,  Volume: 42,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1987.tb04364.x  |  Cited by: 10

WILLIAM D. BRADFORD

A firm must issue common stock in order to undertake a new investment, and the firm's manager‐owners can value the firm more accurately than the market. The ability of the manager‐owners to trade in the firm's shares during the issue (a) reduces the investments that are foregone because of the market's mispricing the firm's shares, (b) changes the size and direction of the stock price change when the firm announces a new stock issue, and (c) changes the market value of the firm before and after the issue announcement, whether or not it decides to issue.


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


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


REVIEW OF INSTITUTIONAL ACTIVITY IN THE EQUITY MARKET, 1951–54

Published: 12/1957,  Volume: 12,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1957.tb04160.x  |  Cited by: 1

William B. Neenan