Latest News
Editorial Board Changes
The Rewiew of Finance is delighted to announce the appointment of Marcin Kacperczyk as Editor for a three-year term starting in January 2020. He replaces Jules van Binsbergen whose term ends in December 2019. Jules has made superb contributions to the RF, not only in handling papers but also providing insights into broader journal strategy, and will continue in a new role of Advisory Editor after he steps down.… Read more...
Managing Editor’s Report for 2018/19
The Managing Editor’s Report for 2018/9 is available here. Some highlights include:
- Our acceptance rate for regular submissions has fallen to 4.1% (from 5.3% in 2017-8 and 6.3% in 2018-9), consistent with our policy of applying top-three standards. Our fast-track acceptance rate is 2%
- As a result, our backlog continues to fall substantially, reducing the time between acceptance and in-print publication.
Credit Market Competition and Liquidity Crises
The lead article in Volume 23, Issue 5 of the Review of Finance is Credit Market Competition and Liquidity Crises by Elena Carletti and Agnese Leonello. This paper finds that – contrary to common concerns – greater competition in the banking industry can reduce the risk of financial crises.
The Double-Edged Sword of Competition
In most industries, competition is believed to be socially beneficial – it benefits customers through greater product choice and lower prices, suppliers through higher input costs, and workers through enhanced wages.… Read more...
2018/9 Best Paper and Best Referee Awards
The Review of Finance congratulates the following award winners:
Pagano/Zechner award for best non-investments paper
Winner: Gene Amromin, Jennifer Huang, Clemens Sialm, Edward Zhong for Complex Mortgages (summary)
Runner-up: Han Kim, Ernst Maug, Christoph Schneider for Labor Representation in Governance as an Insurance Mechanisms (summary)
Finalists:
- Ryan Michaels, Beau Page, Toni Whited, Labor and Capital Dynamics under Financing Frictions (summary)
- Carl Hsin-han Shen, Hao Zhang Tournament Incentives and Firm Innovation
- Anthony M Kwasnica, Raisa Velthuis, Jared Williams: Did You See What I Saw?
Are US Industries Becoming More Concentrated?
The lead article in Volume 23, Issue 4 of the Review of Finance is Are US Industries Becoming More Concentrated? by Gustavo Grullon, Yelena Larkin, and Roni Michaely. This paper finds that industry concentration has increased substantially in the US over the last two decades.… Read more...
Do Credit Default Swaps Mitigate the Impact of Credit Downgrades?
The lead article in Volume 23, Issue 3 of the Review of Finance is Do Credit Default Swaps Mitigate the Impact of Credit Downgrades? by Sudheer Chava, Rohan Ganduri, and Chayawat Ornthanalai. When a firm’s debt is downgraded, its stock price falls, it subsequently raises less debt, and its cost of debt increases. This paper finds that, when credit default swaps (CDS) trade on its debt, all three effects are reduced – suggesting that CDS alleviates the financial frictions arising from downgrades.… Read more...
Option to Suggest Editors
The Review of Finance has now added the option to suggest editors. The submission system contains a drop-down where you can make a selection (or choose “None Selected”). We will take author suggestions into account but are not always able to accommodate them due to factors such as workload, fit, and conflicts.… Read more...
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...