Journal of Applied Finance

Journal of Applied Finance is a trade journal focusing on Applied Finance

Articles from Vol. 16, No. 2, Fall

Bayesian Networks: A Decision Tool to Improve Portfolio Risk Analysis
This paper demonstrates how Bayesian networks, a graphical modeling tool, can improve analysts' forecasts, portfolio decision-making, and risk analysis. Bayesian networks combine historical quantitative information with qualitative information in a systematic...
Corporate Governance and the Reinvention of Finance
Remarks of the former dean and Professor Emeritus at the Olin School of Business, Washington University in Saint Louis upon receipt of the Lifetime Achievement Award at the 2006 Financial Intermediation Research Society Meeting, Shanghai, ChinaAlthough...
Dividend Policy, Shareholder Rights, and Corporate Governance
This study explores agency costs as a determinant of dividend policy. We examine how dividends are related to the strength of shareholder rights. The evidence reveals an inverse association between dividend payouts and shareholder rights, i.e. firms...
Doctoral Programs in Finance: Academic Content and Research Productivity
The research productivity of doctoral degree holders in finance has attracted interest for several years. The connection between the publication records of graduates and the academic content of the doctoral programs remains largely unexplored. An examination...
Duration: A Practitioner's View
The concept of duration took a long journey from its original creation by Macaulay to its ubiquitous usage today. Along the way, it was championed alternately by practitioners and academics. This paper will describe many of the developments and investor...
Duration: What Is All the Disagreement About?
The following papers are published in honor of Gerald O. Bierwag, who passed away on February 15, 2005.1 Gerry was one of the pioneers who helped to develop financial economics as a separate and credible discipline. Probably most important among his...
Manager Characteristics and Hedge Fund Performance
The tremendous growth in assets managed in hedge funds is well recognized. However, monitoring, valuation and performance assessment is confounded by the paucity and inconsistency of available data. Hedge funds do not regularly report their performance...
Shareholder Rights, Corporate Governance, and Arthur Andersen
Grounded in agency theory, this study seeks to ascertain whether the severity of agency costs influences auditor selection from among the Big Six auditors. An examination of the association between the strength of shareholder rights and auditor choice...
Student Performance: Does Effort Matter?
Previous studies find mixed results on whether effort has a positive impact on student performance. Using observed rather than self-reported measures of effort, I find that students' efforts do have a significant positive impact on their performance....
The Capital Budgeting Decisions of Small Businesses
This paper uses survey data compiled by the National Federation of Independent Business to analyze the capital budgeting practices of small firms. While large firms tend to rely on the discounted cash flow analysis favored by finance texts, many small...
Yield Elasticity: A New, Objective Measure of Interest-Rate Risk
Duration is not a good forecaster of the Interest-Rate Risk (IRR) of coupon bonds over long time periods because it is perverse: when yields rise IRR rises but durations fall. This article reports the discovery and initial testing of Yield Elasticity...