Latest News

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?

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.

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...

Introduction of Page Limits

The RF is now introducing a 60-page limit (including appendices, bibliography, figures, and tables, but excluding internet appendices). This is for two reasons. First, an excessively long paper is likely to be less impactful. Second, refereeing an excessively long paper is demanding, and this helps ensure that the referee(s) have the capacity to review the manuscript diligently.… Read more...