Journal of Economics and Finance

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

Articles from Vol. 23, No. 1, Spring

Abnormal Returns of Thrift versus Non-Thrift IPOs
Abstract This paper examines the issue of underpricing for converting thrift institutions. Evidence has found this underpricing to be pervasive in the mutual-to-stock thrift conversion process. The issue is of importance given the debate over whether...
An Error-Correction Model of the Demand for Equity Mutual Funds in the U.S. 1973-1994
Abstract The purpose of this paper is to estimate an error-correction model of the U.S. demand for equity mutual funds. Using annual data for the period 1973-1994, this study finds that changes in the demand for equity mutual funds have been significantly...
An Examination of the Causal Relationship between Savings and Growth in the Third World
Abstract Past studies reveal a correlation between savings and GDP growth in the Third World. Those studies hypothesize that higher rates of savings cause higher growth rates of real GDP. This paper explores an alternative hypothesis: that higher growth...
Factors Affecting Student Retention Probabilities: A Case Study
Abstract A comprehensive model of retention based on Tinto's goal commitment and institutional commitment combined with financial considerations is evaluated for the case of an urban public university enrolling large numbers of non-traditional students....
FDICIA and Bank Failure Contagion: Evidence from the Two Failures of First City Bancorporation
Abstract We investigate contagion effects from the two failures of First City Bancorporation-the only large regional bank to fail before and after FDICIA. FDICIA imposes changes in the bank failure resolution process that expose uninsured depositors...
Feedback Trading in Exchange-Rate Markets: Evidence from within and across Economic Blocks
Abstract This paper examines the pattern of autocorrelation of exchange rates in the EU, ASEAN, and NAFTA. We find no feedback trading within blocks among developed financial markets' currencies, but it exists for less developed financial markets. Across...
Market Efficiency, Discount-Rate Changes, and Stock Returns: A Long-Term Perspective
Abstract This paper examines the market efficiency issue by analyzing stock returns surrounding Fed announcements of discount-rate changes. Based on an analysis of ex post returns over a 58-year period, the results provide evidence of long-term market...
Net Treasury Borrowing and Interest-Rate Changes
Abstract As noted by Arora and Dua (1993, 1995), studies investigating the relationship between budget deficits and short-term interest rates have generated inconsistent results. This study performs Granger causality tests on four short-term interest...
Returns to Acquiring Firms: The Role of Managerial Ownership, Managerial Wealth, and outside Owners
Abstract Since merger and acquisition activity does not unambiguously benefit the shareholders of acquiring firms, the motivation of managers who undertake such actions is unclear. The present study investigates the extent to which the wealth effects...
Self-Selection Bias and Cost-of-Living Estimates
Abstract Due to continued interest in geographic living-cost differentials, some researchers have used data from the ACCRA Cost of Living Index. This paper explores further the potential for using ACCRA data for costof-living research. In particular,...
Two Approaches to Measuring Journal Quality: Application to Finance Journals
Abstract We analyze the tendency of a journal to publish articles that eventually become classics in their specialized fields. A simple theoretical model is developed and applied to citation data for finance journals in 1991 and 1992. Of the top ten...