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.
AFA members can log in to view full-text articles below.
View past issues
Search the Journal of Finance:
Search results: 325. Page: 3
Go to:
<<Previous 1 2 3 4 5 6 7 8 9 10 Next>>
What Do Entrepreneurs Pay for Venture Capital Affiliation?
Published: 11/27/2005 | DOI: 10.1111/j.1540-6261.2004.00680.x
David H. Hsu
This study empirically evaluates the certification and value‐added roles of reputable venture capitalists (VCs). Using a novel sample of entrepreneurial start‐ups with multiple financing offers, I analyze financing offers made by competing VCs at the first professional round of start‐up funding, holding characteristics of the start‐up fixed. Offers made by VCs with a high reputation are three times more likely to be accepted, and high‐reputation VCs acquire start‐up equity at a 10–14% discount. The evidence suggests that VCs' “extra‐financial” value may be more distinctive than their functionally equivalent financial capital. These extra‐financial services can have financial consequences.
Selective Publicity and Stock Prices
Published: 03/27/2012 | DOI: 10.1111/j.1540-6261.2012.01726.x
DAVID H. SOLOMON
I examine how media coverage of good and bad corporate news affects stock prices, by studying the effect of investor relations (IR) firms. I find that IR firms “spin” their clients' news, generating more media coverage of positive press releases than negative press releases. This spin increases announcement returns. Around earnings announcements, however, IR firms cannot spin the news and their clients' returns are significantly lower. This pattern is consistent with positive media coverage increasing investor expectations, creating disappointment around hard information. Using reporter connections and geographical links, I argue that IR firms causally affect both media coverage and returns.
THE S.E.C. SPECIAL STUDY AND THE EXCHANGE MARKETS
Published: 05/01/1966 | DOI: 10.1111/j.1540-6261.1966.tb00230.x
David K. Eiteman
Tender Offers and Management Resistance
Published: 05/01/1983 | DOI: 10.1111/j.1540-6261.1983.tb02237.x
DAVID P. BARON
Presidential Address: Pension Policy and the Financial System
Published: 08/24/2018 | DOI: 10.1111/jofi.12710
DAVID S. SCHARFSTEIN
In this paper, I examine the effect of pension policy on the structure of financial systems around the world. In particular, I explore the hypothesis that policies that promote pension savings also promote the development of capital markets. I present a model that endogenizes the extent to which savings are intermediated through banks or capital markets, and derive implications for corporate finance, household finance, banking, and the size of the financial sector. I then present a number of facts that are broadly consistent with the theory and examine a variety of alternative explanations of my findings.
Investment Decisions Depend on Portfolio Disclosures
Published: 12/17/2002 | DOI: 10.1111/0022-1082.00132
David K. Musto
A weekly database of retail money fund portfolio statistics is uneconomical for retail investors to observe, so it allows direct comparison of disclosed and undisclosed portfolios. This makes possible a more direct and unambiguous test for “window dressing” than elsewhere in the literature. The analysis shows that funds allocating between government and private issues hold more in government issues around disclosures than at other times, consistent with the theory that intermediaries prefer to disclose safer portfolios. Cross‐sectional comparisons locate the most intense rebalancing in the worst recent performers.
A Model of the Demand for Investment Banking Advising and Distribution Services for New Issues
Published: 09/01/1982 | DOI: 10.1111/j.1540-6261.1982.tb03591.x
DAVID P. BARON
This paper presents a theory of the demand for investment banking advising and distribution services for the case in which the investment banker is better informed about the capital market than is the issuer, and the issuer cannot observe the distribution effort expended by the banker. The optimal contract under which the offer price decision is delegated to the better‐informed banker in order to deal with the adverse selection and moral hazard problems resulting from the informational asymmetry and the observability problem is characterized. The model demonstrates a positive demand for investment banking advising and distribution services and provides an explanation of the underpricing of new issues.
Order Form and Information in Securities Markets
Published: 07/01/1991 | DOI: 10.1111/j.1540-6261.1991.tb03771.x
DAVID EASLEY, MAUREEN O'HARA
This paper examines the effects of price‐contingent orders on security prices. We show that a market maker who knows the type and composition of trades will set larger spreads and adjust prices faster than if price‐contingent orders were not allowed. Because traders have rational expectations over the book, we demonstrate that uncertainty over order type reduces the variance of prices but with a corresponding loss in price informativeness. We also show that the sequence property of price‐contingent orders increases the probability of large price movements. This distinction between variance and episodic price volatility has important policy implications.
FORECASTING STOCK MARKET PRICES
Published: 05/01/1977 | DOI: 10.1111/j.1540-6261.1977.tb03282.x
David A. Umstead
DISCUSSION
Published: 07/01/1984 | DOI: 10.1111/j.1540-6261.1984.tb03668.x
DAVID S. KIDWELL
The Crash of ʼ87: Was It Expected? The Evidence from Options Markets
Published: 07/01/1991 | DOI: 10.1111/j.1540-6261.1991.tb03775.x
DAVID S. BATES
Transactions prices of S&P 500 futures options over 1985‐1987 are examined for evidence of expectations prior to October 1987 of an impending stock market crash. First, it is shown that out‐of‐the‐money puts became unusually expensive during the year preceding the crash. Second, a model is derived for pricing American options on jump‐diffusion processes with systematic jump risk. The jump‐diffusion parameters implicit in options prices indicate that a crash was expected and that implicit distributions were negatively skewed during October 1986 to August 1987. Both approaches indicate no strong crash fears during the 2 months immediately preceding the crash.