Latest News
Labor and Capital Dynamics Under Financing Frictions
The lead article in Volume 23, Issue 2 of the Review of Finance is Labor and Capital Dynamics under Financing Frictions by Ryan Michaels, Beau Page, and Toni Whited. This paper uses a new quarterly panel dataset to examine how financing frictions affect firms’ investment and hiring decisions. In particular, it shows that higher leverage reduces wages, even though it does not reduce employment. To rationalize the findings, the authors build a model where higher leverage increases the probability of default, reducing the surplus to be shared with workers and thus wages.… Read more...
Important update for authors and referees
We have recently updated our information for authors and referees. For authors, this explains the requirement for EU authors to provide VAT information for their institution (or confirm they are paying the submission fee privately), plus the process and timescale of any refunds (e.g.… Read more...
Complex Mortgages
(This post is thanks to Editor Amiyatosh Purnanandam)
The lead article in Volume 22, Issue 6 of the Review of Finance is Complex Mortgages by Gene Amromin, Jennifer Huang, Clemens Sialm, and Edward Zhong.
The Changing Nature of Mortgages
Mortgage products were extremely simple in the twentieth century.… Read more...
Which Factors?
(This post is thanks to Editor Amit Goyal)
The lead article in Volume 23, Issue 1 of the Review of Finance is “Which Factors?” by Kewei Hou, Haitao Mo, Chen Xue, and Lu Zhang.
A factor model proposes why different stocks have different returns.… Read more...
A Theory of Costly Sequential Bidding
The lead article in Volume 22, Issue 5 of the Review of Finance is A Theory of Costly Sequential Bidding by Kent Daniel and David Hirshleifer. This paper explains why, in many real-life auctions such as M&A, bidders may engage in “jump-bids” – bid much more than needed to stay in the auction – when it might seem more prudent to bid the minimum possible increment
How to Bid in an Auction?… Read more...
Editorial Board Changes and Reappointments
The Review of Finance is delighted to announce the reappointment of Amit Goyal and Joel Peress as Editors for a second three-year term starting in 2019. We also welcome David Martinez-Miera as Associate Editor. We thank the outgoing Associate Editors Doron Avramov, David Thesmar, and Paolo Volpin for their service to the journal.… Read more...
Managing Editor’s Report for 2017/18
The Managing Editor’s Report for 2017/8 is available here. Some highlights include:
- The number of R&Rs has fallen substantially from 156 in 2015/16 to 87 in 2016/17 and 38 in 2017/18, consistent with our new policy of applying top-three standards
- As a result, our backlog has also fallen substantially, reducing the time between acceptance and in-print publication.
2017/8 Best Paper and Best Referee Awards
The Review of Finance congratulates the following award winners:
Pagano/Zechner award for best non-investments paper
Winner: Patrick Bolton and Haizhou Huang for The Capital Structure of Nations (non-technical summary here)
Runner-up: Marianne Bertrand, Francis Kramarz, Antoinette Schoar, and David Thesmar for The Cost of Political Connections (non-technical summary here)
Finalists:
- Sophie A.
Labor Representation in Governance as an Insurance Mechanism
(This post is thanks to Advisory Editor Andrew Ellul)
The lead article in Volume 22, Issue 4, of the Review of Finance is Labor Representation in Governance as an Insurance Mechanism by E. Han Kim, Ernst Maug and Christoph Schneider. This paper provides evidence that labor participation in firms’ governance enables risk sharing between employees and employers.… Read more...
The Cost of Political Connections
The lead article in Volume 22, Issue 3 of the Review of Finance is The Cost of Political Connections by Marianne Bertrand, Francis Kramarz, Antoinette Schoar, and David Thesmar. This paper shows that CEOs with a background in politics don’t shut down potentially underperforming plants, and open plants that they might not have otherwise, to boost employment in the run-up to a local election.… Read more...