Journal of Economics and Finance

Publishes theoretical and empirical articles in the general areas of economics and finance. 

Articles from Vol. 35, No. 1, January

Board Independence and Market Reactions around News of Stock Option Backdating
AbstractThis study focuses on whether board independence explains stock price reactions to backdating and factors that explain backdating decision. Consistent with previous studies, we find negative stock returns around backdating news. Although our...
Can Overconfidence Explain the Consumption Hump? A General Equilibrium Inquiry
AbstractThe standard neoclassical life-cycle model predicts that individual consumption should either increase, remain constant or fall monotonically depending on whether the market rate of return on savings is greater than, equal to or less than the...
Do Size and Unobservable Company Factors Explain Stock Price Reversals?
AbstractWe use daily price data from the Egyptian stock market and a Loser portfolio of 20 IPOs from the late 1990s that experienced dramatic 1-day price falls in the period 2004 to 2007 to estimate a 2-way fixed effects model of CARs. Observable covariates...
Golden Eggs versus Plastic Eggs: Hyperbolic Preferences and the Persistence of Debit
AbstractThe popularity of debit cards is good news from a social perspective since they carry a lower transaction cost than other non-cash payment methods. Unfortunately, the reason for this consumer driven growth remains a mystery. Consumers do not...
News and Noise: Do Investors React to Stock Split Announcements Differently during Periods of High and Low Market Volatility?
AbstractIn this paper, we find evidence that stock split announcements have a greater wealth effect when market volatility, as measured by the VIX index, is low. This effect is driven primarily by small firms. These results support the hypothesis that...
Regional Information and Market Efficiency: The Case of Spread Betting in United States College Football
AbstractUsing game results over a seven year span (1999-2006), we find that United States college football teams in arid regions "win" against the spread in 56.64% of games in which they host a team from a humid region. This result provides statistically...
Some Causes of Interstate Differences in Community Bank Performance
AbstractThis study assesses the relationship between the performance of community banks and conditions in their marketplaces over the 1994-2008 period. A panel model is used, in which the states serve as the panels, and focuses on banks termed community...
The Sub-Prime Mortgage Crisis and the Changing Value of Cash
AbstractWe use an event study methodology to examine the cross-sectional differences in the marginal value of cash before and during the sub-prime mortgage crisis. We document that the marginal value of cash is significantly lower in the crisis period...