Journal of Applied Finance

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

Articles from Vol. 13, No. 2, Fall

Applied Market Microstructure
Remarks given at the 2003 Financial Management Annual Meeting, October 10, 2003My dear colleagues: I cannot thank you enough for the great honor you do me by this award. It is, of course, conventional to appear modest when accepting an award like this....
A Simple and Flexible DCF Valuation Formula
The growth-opportunities version of the Modigliani-Miller free cashflow model is used to develop a simple discounted cash flow formula for equity valuation that accommodates gradually diminishing NPVs of future growth opportunities at a constant rate....
Bank Procyclicality, Credit Crunches, and Asymmetric Monetary Policy Effects: A Unifying Model
Much concern has recently been expressed that both large, procyclical changes in bank assets and "credit crunches " caused by banks' reluctance to expand loans during recessions contribute to economic instability. These effects are difficult to explain...
Corporate Governance, Corporate Ownership, and the Role of Institutional Investors: A Global Perspective
We examine the relation between corporate governance and ownership structure, focusing on the role of institutional investors. In many countries, institutional investors have become dominant players in the financial markets. We discuss the theoretical...
Country Risk and Company Exposure: Theory and Practice
The growth of financial markets in Asia and Latin America and the allure of globalization has made the analysis and assessment of country risk a critical component ofvaluation in recent years. In this paper, we consider two issues. The first is the whether...
Market Size and Investment Performance of Defaulted Bonds and Bank Loans: 1987-2002
This article assesses and analyzes the size and performance of defaulted bonds and bank loans for the period 1987-2002. Defaulted bonds and bank loans performed somewhat poorly during 2002, reversing the relatively good performance of the preceding year,...
Volatility and Institutional Investor Holdings in a Declining Market: A Study of NASDAQ during the Year 2000
We investigate the differences in the holdings of institutional investors relative to individual investors during an eight-month period between March and November 2000, where the Nasdaq Composite index fell 46.23% in value. We find evidence that during...