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Empirical Corporate Finance References

Professor Michael R. Roberts

INVESTMENT POLICY

Surveys

1. Hubbard, R. Glenn, 1999, Capital Market Imperfections and Investment,

 Journal of Economic Literature 36, 193-225.

2. Stein, Jeremy, 2003, Agency, Information and Corporate Investment, Handbook of the Economics of Finance, Volume 1A, Eds. George M. Constantinides,

Milton Harris, and Rene M. Stulz, Elsevier, Amsterdam.

Macroeconomic Conditions and Investment

 Financial Accelerator 

3. Bernanke, Ben, and Mark Gertler, 1989, Agency Costs, Net Worth, andBusiness Fuctuations, American Economic Review 79, 14−31.

4. Bernanke, Ben, and Carla Lown, 1991, The Credit Crunch,  Brookings Papers

on Economic Activity, 204–239.

5. Kashyap, Anil K., Owen A. Lamont and Jeremy C. Stein, 1994, CreditConditions and the Cyclical Behavior of Inventories, Quarterly Journal of  Economics 109, 565−592.

6. Bernanke, Ben, and Mark Gertler, 1995, Inside the Black Box: the CreditChannel of Monetary Policy Transmission, Journal of Economic Perspectives 9,

27−48.

7. Cecchetti, S.G., 1995, Distinguishing Theories of the Monetary Transmission

Mechanism, Federal Reserve Bank of St. Louis Review 77, 83−97.

8. Peek, J., and E. Rosengren, 1995, The Capital Crunch: Neither a Borrower Nor aLender Be, Journal of Money, Credit and Banking 27, 625−638.

9. Bernanke, Ben, Mark Gertler and Simon Gilchrist, 1996, The FinancialAccelerator and the Fight to Quality, Review of Economic Studies 78, 1−15.

10. Kiyotaki, N., and John Moore, 1997, Credit Cycles,  Journal of Political  Economy 105, 211−248.

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11. Peek, J., and E. Rosengren, 1997, The International Transmission of Fnancial

Shocks: The Case of Japan, American Economic Review 87, 495−505.

12. Bernanke, B., M. Gertler and S. Gilchrist (1999), “The Financial Accelerator in

a Quantitative Business Cycle Framework”, in: J.B. Taylor and M. Woodford,eds., Handbook of Macroeconomics, Vol. 1C (Elsevier, Amsterdam).

 Bank Lending Channel 

13. Bernanke, Ben, and Alan Blinder, 1988, Credit, Money, and Aggregate

Demand, American Economic Review 78, 435−439.

14. Bernanke, Ben, and Alan Blinder, 1992, The Federal Funds Rate and the

Channels of Monetary Transmission, American Economic Review 82, 901−921.

15. Kashyap, Anil, Jeremy C. Stein and David Wilcox, 1993, Monetary Policy andCredit Conditions: Evidence from the Composition of External Finance,

 American Economic Review 83, 78−98.

16. Kashyap, Anil, and Jeremy C. Stein, 1994, Monetary Policy and Bank Lending,

in: N.G. Mankiw, ed., Monetary Policy ( University of Chicago Press, Chicago).

17. Hubbard, R.Glenn, 1995, Is there a ‘Credit Channel’ for Monetary Policy?

 Federal Reserve Bank of St. Louis Review 77, 63−77.

18. Kashyap, Anil, and Jeremy C. Stein, 1995, The Impact of Monetary Policy on

Bank Balance Sheets, Carnegie-Rochester Conference Series on Public Policy

42:151−195.

19. Ludvigson, Sidney, 1998, The Channel of Monetary Transmission to Demand:

Evidence from the Market for Automobile Credit,  Journal of Money, Credit and  Banking 30, 365−383.

20. Morgan, D., 1998, The Credit Effects of Monetary Policy: Evidence using Loan

Commitments, Journal of Money, Credit and Banking 30, 102−118.

21. Stein, Jeremy C., 1998, An Adverse-Selection Model of Bank Asset and

Liability Management with Implications for the Transmission of MonetaryPolicy, RAND Journal of Economics 29, 466−486.

22. Kashyap, Anil, and Jeremy C. Stein, 2000, What do a Million Observations onBanks Say About the Transmission of Monetary Policy?  American Economic

 Review 90, 407−428.

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23. Kishan, R., and T. Opiela, 2000, Bank Size, Bank Capital, and the Bank 

Lending Channel, Journal of Money, Credit and Banking 32, 121−141.

The Stock Market and Investment

24. Barro, Robert J., 1990, The Stock Market and Investment”, Review of Financial 

Studies 3, 115−131.

25. Morck, Randal, Andrei Shleifer, and Robert Vishny, 1990, The Stock Market

and Investment: Is the Market a Sideshow?  Brookings Papers on Economic

 Activity, 157–215.

26. Blanchard, Olivier J., C. Rhee and Lawrence H. Summers, 1993, The Stock 

Market, Profit and Investment, Quarterly Journal of Economics 108, 115−136.

27. Baker, Malcolm, Jeremy C. Stein, and Jeffrey Wurgler, 2003, When Does theMarket Matter? Stock Prices and the Investment of Equity-Dependent Firms,

Quarterly Journal of Economics 

28. Chen, Qi, Itay Goldstein, and Wei Jiang, 2007, Price informativeness and

investment sensitivity to stock prices, Review of Financial Studies 20, 619-650.

The Diversification Discount

29. Berger, P., and Eli Ofek, 1995, Diversification’s Effect on Frm Value, Journal of Financial Economics 37, 39−65.

30. Berger, P., and Eli Ofek, 1996, Bust-up Takeovers of Value-DestroyingDiversified Frms, Journal of Finance 51, 1175−1200.

31. Graham, John R., Michael L. Lemmon, and Jack Wolf, 2002, Does corporatediversification destroy value? Journal of Finance 57, 695-720.

32. Schoar, Antoinette, 2002, The effects of corporate diversification on

 productivity, Journal of Finance 57, 2379-2403.

33. Villalonga, Belen, 2004, Diversification discount or premium? New Evidence

from BITS establishment level data, Journal of Finance 59, 479-506.

Financial Slack and Investment

 Historical Evidence34. Meyer, J.R., and E. Kuh, 1957, The Investment Decision, Harvard University

Press, Cambridge, MA.

 Internal Funds and Investment 

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47. Kaplan, Stephen N. and Luigi Zingales, 1997, Do Investment-Cash Flow 

Sensitivities Provide Useful Measures of Financing Constraints?  Quarterly

 Journal of Economics 112, 159−216.

48. Fazzari, Steven M., R. Glenn Hubbard, and Bruce C. Petersen, 2000,

Investment-Cash Flow Sensitivities are Useful: A Comment on Kaplan and Zingales, Quarterly Journal of Economics 115, 695-705.

49. Kaplan, Steven N., and Luigi Zingales, 2000, Investment-Cash Fow Sensitivities are not Valid Measures of Fnancing Constraints, Quarterly Journal of 

 Economics 115, 707−712.

50. Erickson, Timothy, and Toni Whited, 2000, Measurement Error and the Relationship Between Investment and q ,  Journal of Political Economy 108,

1027−1057.

51. Rauh, Joshua, 2006, Investment and Financing Constraints: Evidence from the Funding of Corporate Pension Plans,  Journal of Finance 61, 33-72.

 Debt (Net Worth) and Investment 

52. Mooradian, Robert, 1994, The Effect of Bankruptcy Protection on Investment: 

Chapter 11 as a Screening Device, Journal of Finance 49, 1403-1430.

53. Bond, Stephen, and C. Meghir, 1994, Dynamic Investment Models and theFirm’s Financial Policy”, Review of Economic Studies 61, 197−222.

54. Lang, Larry H.P., Eli Ofek, and Rene Stulz, 1996, Leverage, Investment, andFirm Growth, Journal of Financial Economics 40, 3−30.

55. Froot, Kenneth, and P. O’Connell, 1997, On the Pricing of Intermediated Risks:Theory and Application to Catastrophe Reinsurance”, NBER Working Paper 

6011 (NBER, Cambridge, MA).

56. Hennessy, Christopher, 2004,  Tobin’s Q, Debt Overhand, and Investment, Journal of Finance

57. Chava, Sudheer, and Roberts, Michael R., 2007, How Does Financing Impact Investment? The Role of Debt Covenants, forthcoming, Journal of Finance.

58. Rauh, Joshua, 2007, The Effects of Financial Condition on Capital Investment and Financing: Evidence from Variation in Pension Fund Asset Performance,

Working Paper, University of Chicago.

Security Price Reactions to Investment

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A. A nice nontechnical survey of tradeoff, pecking order, and agency-based

theories of capital structure from one of the pioneers in the field.

68. Frank, Murray Z., and Vidhan Goyal, 2007, Tradeoff and Pecking Order  

Theories of Debt, The Handbook of Empirical Corporate Finance, Ed. Espen

Eckbo, Elsevier, Amsterdam.A. A more detailed and up-to-date compliment to Myers survey by two good

empiricists.

69. Graham, John R., and Campbell Harvey, 2001, The Theory and Practice of  

Corporate Finance: Evidence from the Field,  Journal of Financial Economics

60, 187–243.

General Studies

 Determinants of Leverage

70. Titman, Sheridan, and Roberto Wessels, 1988, The Determinants of Capital 

Structure Choice,  Journal of Finance 1-19.

71. Barclay, Michael, Clifford W. Smith, and Ross Watts, 1995, The Determinants

of Corporate Leverage and Dividend Policies,  Journal of Applied Corporate

 Finance 7, 4-19.

72. Rajan, Raghuram, and Luigi Zingales, 1995, What Do We Know About Capital Structure: Some Evidence from International Data, Journal of Finance 50, 1421-

1460.

73. Welch, Ivo, 2004, Capital Structure and Stock Returns,  Journal of Political  Economy 112, 106-131.

74. Faulkender, Michael, and Mitchell A. Petersen, 2006,  Does the Source of  

Capital Affect Capital Structure?  Review of Financial Studies 19, pp-45-79.

75. Frank, Murray Z., and Vidhan K. Goyal, 2007, Capital structure decisions: Which factors are reliably important? Working Paper, University of Minnesota

and HKUST.

76. Lemmon, Michael L., Michael R. Roberts, and Jaime F. Zender, 2007, Back to 

the Beginning: Persistence and the Cross-Section of Corporate Capital Structure,forthcoming Journal of Finance.

 Determinants of Issuance Decisions

77. Taggart, Robert A. Jr., 1977,  A Model of Corporate Financing Decisions,

 Journal of Finance 32, 1467-1484.

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78. Marsh, Paul, 1982, The choice between equity and debt: An empirical study,

 Journal of Finance 37, 121–144.

79. Jung, Kooyul, Yong-Cheol Kim, and Rene Stulz, 1996,  Timing, Investment Opportunities, Managerial Discretion, and the Security Issue Decision,  Journal 

of Financial Economics 42, 159-185.

80. Hovakimian, Armen, Tim Opler, and Sheridan Titman, 2001, The Debt-Equity 

Choice,  Journal of Financial and Quantitative Analysis 36, 1–24.

Market Timing

81. Baker, Malcolm, and Jeff Wurgler, 2002, Market timing and capital structure, Journal of Finance 57, 1-32.

82. Alti, Aydogan, 2006, How Persistent is the Impact of Market Timing on Capital 

Structure?  Journal of Finance 61, 1681-1710.

Target Capital Structure & Rebalancing

83. Jalilvand, Abolhassan, and Robert S. Harris, 1984, Corporate Behavior in 

Adjusting to Capital Structure and Dividend Targets: An Econometric Study, Journal of Finance 39, 127-145.

84. Leary, Mark T., and Michael R. Roberts, 2005, Do Firms Rebalance Their  

Capital Structures?  Journal of Finance 60, 2575-2619.

85. Flannery, Mark, and Kasturi Rangan, 2006, Partial Adjustment Towards Target Capital Structures, Journal of Financial Economics 79, 469–506.

86. Kayhan, Ayla, and Sheridan Titman, 2007, Firms’ Histories and Their Capital 

Structures, Journal of Financial Economics 83, 1-32.

Taxes

87. Givoly, Dan, Carla Hayn, Aharon R. Ofer, and Oded Sarig, 1992, Taxes and 

Capital Structure: Evidence from Firms’ Response to the Tax Reform Act of  1986,  Review of Financial Studies 5, 331–355.

88. Fama, Eugene, and Kenneth R. French, 1998, Taxes, Financing Decisions and Firm Value,  Journal of Finance 53, 819–843.

89. Graham, John, 2000, How big are the tax benefits of debt?, Journal of Finance

55, 1901-1941.

90. Graham, John, 2003, Taxes and Corporate Finance: A Review,  Review of 

 Financial Studies 16, 1075-1129.

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91. Graham, John R., and A L. Tucker, 2006,  Tax shelters and corporate debt 

 policy,  Journal of Financial Economics 81, 563–594.

92. Lewellen, Jonathan, and Katerina Lewellen, 2006, Internal Equity, Taxes, and 

Capital Structure, Working Paper, Dartmouth University.

Bankruptcy and Distress

93. Warner, Jerome B., 1977, Bankruptcy Costs: Some Evidence,  Journal of 

 Finance 32, 337–347.

94. Haugen, Robert A., and Lemma W. Senbet, 1978, The Insignificance of  

Bankruptcy Costs to the Theory of Optimal Capital Structure,  Journal of 

 Finance 33, 383–393.

95. Franks, Julian, and Walter Torous, 1989, An Empirical Investigation of United States Firms in Reorganization, Journal of Finance 44, 747-769.

96. Gilson, Stuart, Kose John, and Larry Lang, 1990, Troubled Debt Restructurings: 

An Empirical Study of Private Restructurings of Firms in Default,  Journal of 

 Financial Economics 27, 315-353.

97. Weiss, Lawrence A., 1990, Bankruptcy Resolution: Direct Costs and Violation 

of Priority of Claims, Journal of Financial Economics 27, 419-444.

98. Asquith, Paul, Robert Gertner, and David Scharfstein, 1994, Anatomy of  

Financial Distress: An Examination of Junk-Bond Issuers, Quarterly Journal of  Economics 109, 625-658.

99. Franks, Julian, and Walter Torous, A Comparison of Financial recontracting in

Distressed Exchanges and Chapter 11 Reorganizations,  Journal of Financial  Economics 35, 349-370.

100. Gilson, Stuart C., 1997, Transactions Costs and Capital Structure Choice: Evidence from Financially Distressed Firms, Journal of Finance 52, 161-196.

101. Andrade, Gregor, and Steven N. Kaplan, 1998, How Costly is Financial (Not 

Economic) Distress? Evidence from Highly Leverage Transactions that Became Distressed,  Journal of Finance 53, 1443-1493.

102. Pulvino, Todd, 1998, Do Asset Fire Sales Exist? An Empirical Investigation of  Commercial Aircraft Transactions, Journal of Finance 53, 939-978.

103. Gilson, Stuart, Edith Hotchkiss, and Richard Ruback, 2000, Valuation of Bankrupt Firms, Review of Financial Studies 13, 43-74..

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Pecking Order (and Versus Tradeoff)

104. Shyam-Sunder, Lakshmi, and Stewart Myers, 2001, Testing Static Tradeoff  

Against Pecking Order Models of Capital Structure,  Journal of Financial 

 Economics 51, 219-244.

105. Chirinko, R., and A. Singha, 2000, Testing static trade-off  against pecking order 

models of capital structure: A critical comment, Journal of Financial Economics58, 417–425.

106. Fama, Euegene, and Kenneth R. French, 2002, Testing Trade-off and Pecking 

Order Predictions about Dividends and Debt, Review of Financial Studies 15, 1– 33.

107. Frank, Murray and Vidham Goyal, 2003, Testing the pecking order theory of  

capital structure, Journal of Financial Economics 67, 217-248.

108. Lemmon, Michael, and Jamie F. Zender, 2005, Debt Capacity and Tests of  

Capital Structure Theories, Working Paper, University of Utah.

109. Fama, Eugene, and Kenneth R. French, 2005, Financing Decisions: Who Issues Stock?, Journal of Financial Economics 76, 549-582.

110. Leary, Mark T., and Michael R. Roberts, 2007, The Pecking Order, Debt 

Capacity, and Information Asymmetry, Working Paper, The Wharton School.

Information Asymmetry

111. Chang, X., Sudipto Dasgupta, and Giles Hillary, 2006, Analyst Coverage and 

Financing Decisions, Journal of Finance 61, 3009–3048.

112. Gomes, Armando, and Gordon Phillips, 2006, Private and Public Security 

Issuance by Public Firms: The Role of Asymmetric Information, WorkingPaper, University of Maryland.

Agency Costs

113. Crutchley, C.E., and R.S. Hansen, 1989, A Test of the Agency Theory of  Managerial Ownership, Corporate Leverage, and Corporate Dividends,

 Financial   Management 18, 36–46.

114. Roberts, Michael R. and Amir Sufi, 2009, Control rights and capital structure:

An empirical investigation, Journal of Finance 64, 1657-1695.

115. Barclay, Michael, Erwan Morellec, and Clifford W. Smith, 2006, On the Debt 

Capacity of Growth Options, Journal of Business 79, 37-59.

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The Macroeconomy and Capital Structure

116. Korajczyk, Robert A., and Amnon Levy, 2003, Capital Structure Choice: Macroeconomic Conditions and Fnancial Constraints,   Journal of Financial 

 Economics 68, 75–109.

117. Bernanke, Ben S., and John Y. Campbell, 1988, Is There a Corporate Debt 

Crisis?, Brookings Papers on Economic Activity 1, 83-125.

Product Market Competition/Industry and Capital Structure

118. Chevalier, Judith, 1995, Do LBO Supermarkets Charge More? An Empirical 

Analysis of the Effects of LBOs on Supermarket Pricing, Journal of Finance 50,

1095-1112.

119. Chevalier, Judith, 1995,  Capital Structure and Product Market Competition: Empirical Evidence from the Supermarket Industry,  American Economic Review

85, 415-435.

120. Phillips, Gordon, 1995, Increased Debt and Industry Product Markets: An 

Empirical Analysis, Journal of Financial Economics 37, 189-238.

121. Campello, Murillo, 2003,  Capital Structure and Product Markets Interactions: 

Evidence from Business Cycles, Journal of Financial Economics 68, 353-378.

122. Mackay, Peter, and Gordon M. Phillips, 2005, How Does Industry Affect Firm 

Fnancial Structure?, Review of Financial Studies 18, 1433–1466.

Low Leverage and Debt Conservatism

123. Minton, Bernadette A., and Karen H. Wruck, 2001, Financial Conservatism: Evidence on Capital Structure from Low Leverage Firms, University of Ohio

Working Paper No. 2001-6.

124. Lemmon, Michael L., and Jaime F. Zender, 2001, Looking Under the Lamppost: An Empirical Examination of the Determinants of Capital Structure, Working

Paper, University of Utah.

125. Molina, Carlos A., 2005, Are Firms Underleveraged? An Examination of the 

Effect of Leverage on Default Probabilities, Journal of Finance 60, 1427–1459.

Security Price Implications of Financing Events

126. Masulis, Ronald W., 1980, The Effects of Capital Structure Change on Security 

Prices: A study of Exchange Offers,  Journal of Financial Economics 8, 139-

177.

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127. Masulis, Ronald W., 1980, Stock Repurchase by Tender Offer: An Analysis of  

the Causes of Common Stock Price Changes, Journal of Finance 35, 305–319.

128. Masulis, Ronald W., and Ashok N. Korwar, 1986, Seasoned Equity Offerings: An Empirical Investigation, Journal of Financial Economics 15, 91–118.

129. Mikkelson, Wayne H., and Megan M. Partch, 1986, Valuation Effects of  

Security Offerings and the Issuance Process,  Journal of Financial Economics

15, 31–60.

130. Asquity, Paul, and Mullins, 1986, Equity Issues and Offering Dilution, Journal 

of Financial Economics 15:61−89.

FINANCIAL CONTRACTING, SECURITY DESIGN & R ENEGOTIATION

Surveys

131. Roberts, Michael R and Amir Sufi, 2009, Financial contracting: A survey of empirical research and future directions, Andrew Lo and Robert Merton (eds.),

 Annual Reviews vol. 1.

Collateral

132. John, Kose, Anthony Lynch, and Manju Puri, 2003, Credit ratings collateral, andloan characteristics: Implications for yield, Journal of Business 76, 371-409.

133. Benmech, Effi, Mark Garmaise, and Toby Moskowitz, 2005, Do liquidation

values affect financial contracts? Evidence from commercial loan contracts and

zonging regulation, Quarterly Journal of Economics 120, 1121-1154.

134. Benmech, Effi and Nittai Bergman, 2005, Collateral pricing, Journal of Finance

91, 339-360.

Renegotiation

135. Gilson, Stuart, 1990, Bankruptcy, boards, banks, and blockholders: Evidence on

changes in corporate ownership and control when firms default,  Journal of  Financial Economics 27, 355-387.

136. Roberts, Michael R, and Amir Sufi, 2009, Renegotiation of financial contracts:

Evidence from private credit agreements,  Journal of Financial Economics 93,

159-184.

137. Benmelech, Effi and Nittai Bergman, 2008, Liquidation values and the

credibility of financial contract renegotiation: Evidence from US airlines,

Quarterly Journal of Economics 123, 1635-1677.

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FINANCIAL POLICY - LIQUIDITY

138. Opler, Timothy, Larry Pinkowitz, and Rene Stulz, 1999, The determinants and 

implications of corporate cash holdings,  Journal of Financial Economics 14,1059-1082.

139. Faulkender, Michael and Rong Wang, 2006, Corporate financial policy and thevalue of cash, Journal of Finance 61, 1957-1990.

140. Foley, C. Fritz, Jay Hartzell, Sheridan Titman, and Garry J. Twite, 2007, Why

do firms hold so much cash? A tax-based explanation,  Journal of Financial  Economics 86, 579-607.

141. Dittmar, Amy, and Jan Mahrt-Smith, 2007, Corporate governance and the value

of cash holdings, Journal of Financial Economics 83, 599-634.

142. Haushalter, David, Sandy Klasa, and William Maxwell, 2007, The influence of  product market dynamics on the firm’s cash holdings and hedging behavior,

 Journal of Financial Economics 84, 797-825.

143. Harford, Jarrad, Sattar Mansi, and William Maxwell, 2008, Corporate

governance and a firm’s cash holdings,  Journal of Financial Economics 87,

535-555.

144. Riddick, Leigh A. and Toni M. Whited, 2008, The corporate propensity to save,

forthcoming Journal of Finance.

145. Sufi, Amir, 2009, Bank lines of credit in corporate finance: An empirical

analysis, Review of Financial Studies 22, 1057-1088.

146. Bates, Thomas, Kathleen M. Kahle, and Rene Stulz, 2010, Why do US firms

hold so much more cash than they used to? Forthcoming Journal of Finance.

FINANCIAL POLICY – PAYOUT POLICY

Foundation

147. Miller, Merton and Franco Modigliani, 1961, Dividend Policy,Growth and the Valuation of Shares,  Journal of Business 34,411-433.

Surveys

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148. Allen, Franklin, and Roni Michael, 2003, Payout Policy,  Handbook of the

 Economics of Finance, Volume 1A, Eds. George M. Constantinides, Milton

Harris, and Rene M. Stulz, Elsevier, Amsterdam.

149. Brav, Alon, John R. Graham, Campbell Harvey and Roni Michaely, 2005,

Payout Policy in the 21st Century, Journal of Financial Economics 77, 483-527.

Smoothing

150. Lintner, John, 1956, Distribution of Incomes of Corporations Among Dividends, Retained Earnings, and Taxes,  AmericanEconomic Review 46, 97-113.

151. Fama, Eugene F. and Harvey Babiak, 1968, Dividend Policy: An Empirical Analysis,  Journal of the American Statistical Association 63, 1132-1161.

Taxes

Static Models

152. Elton, Edward and Martin Gruber, 1970, Marginal Stockholders‘ Tax Rates and the Clientele Effect, Review of Economics andStatistics 52, 68-74.

The Role of Risk (These are more asset pricing studies of dividend yields.)

153. Black, Fischer, and Myron Scholes, 1974, The Effects of Dividend Yield and Dividend Policy on Common Stock Prices andReturns, Journal of Financial Economics, 1, 1-22.

154. Blume, Marshal E., Jean Crockett and Irwin Friend, 1974, StockOwnership in the United States: Characteristics and Trends,Survey of Current Business, 16-40.

155. Long, John B., 1977, Efficient Portfolio Choice with Differential Taxation of Dividend and Capital Gains,  Journal of FinancialEconomics 5, 25-53.

156. Lewellen, Wilbur G., Kenneth L. Stanley, Ronald C. Lease andGary G. Schlarbaum, 1978, Some Direct Evidence on theDividend Clientele Phenomenon,  Journal of Finance 33, 1385-1399.

157. Litzenberger, Robert and Krishna Ramaswamy, 1979, TheEffects of Personal Taxes and Dividends on Capital Asset Prices:

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180. Frank, Murray and Ravi Jagannathan, 1998, Why do stock pricesdrop by less than the value of the dividend? Evidence from acountry without taxes,  Journal of Financial Economics 47, 161-188.

181. Green, Richard, and Kristian Rydqvist, 1999, Ex-day Behaviorwith Dividend Preference and Limitation to Short-TermArbitrage: The Case of Swedish Lottery Bonds,  Journal of Financial Economics 53, 145-187.

182. Koski, Jennifer, and Roni Michaely, 2000, Prices, Liquidity andthe Information Content of Trades, Review of Financial Studies13, 659-696.

183. Graham, John R., Roni Michael, and Michael R. Roberts, 2003,Do Price Discreteness and Transaction Costs Affect Stock

Returns? Comparing Ex-Dividend Pricing Before and AfterDecimalization, Journal of Finance 58, 2611-2635.

Information/Signaling

 Payout Policy and Future Earnings

184. Watts, Ross, 1973, The Information Content of Dividends, Journal of Business 46, 191-211.

185. Gonedes, Nicholas J., 1978, Corporate Signaling, External

Accounting, and Capital Market Equilibrium: Evidence onDividends, Income, and Extraordinary Items,  Journal of  Accounting Research 16, 26-79.

186. Brickley, James, 1983, Shareholders Wealth, InformationSignaling, and the Specially Designated Dividend: An EmpiricalStudy, Journal of Financial Economics 12, 187-209.

187. Penman, Stephen H., 1983, The Predictive Content of EarningsForecasts and Dividends, Journal of Finance 38, 1181-1199.

188. Eades, Ken, Pat Hess and Han E. Kim, 1984, On InterpretingSecurity Returns During the Ex-dividend Period,  Journal of Financial Economics 13, 3-34.

189. Ofer, Aharon R. and Daniel R. Siegel, 1987, Corporate FinancialPolicy, Information, and Market Expectations: An EmpiricalInvestigation of Dividends, Journal of Finance 42, 889-911.

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190. DeAngelo, Harry, Linda DeAngelo, and Douglas Skinner, 1996,Reversal of Fortune, Dividend Signaling and the Disappearanceof Sustained Earnings Growth,  Journal of Financial Economics40, 341-371.

191. Nissim, Doron, and Amir Ziv, 2001, Dividend changes and futureprofitability, Journal o f Finance 61, 2111-2134.

 Payout Policy and Security Prices

192. Pettit, R. Richardson, 1972, Dividend Announcements, SecurityPerformance, and Capital Market Efficiency,  Journal of Finance27, 993-1007.

A. Dividend increases (decreases) are met with priceincreases (decreases).

193. Charest, Guy, 1978, Dividend Information, Stock Returns andMarket Efficiency œ II,  Journal of Financial Economics 6, 297-330.

A. Abnormal performance of 4% in the year leading up to adividend increase month and -12% for dividend decreasingfirms.

B. 4% abnormal return in 2 years after dividend increase and-8% for dividend decreasing firms.

194. Aharony, Joseph and Itzhak Swary, 1980, Quarterly DividendAnd Earnings Announcements and Stockholders‘ Returns: An

Empirical Analysis, Journal of Finance 35, 1-12.A. Dividend increases (decreases) are met with price

increases (decreases) even after controlling forcontemporaneous earnings announcements.

195. Asquith, Paul and David W. Mullins, Jr., 1983, The Impact Of Initiating Dividend Payments On Shareholders‘ Wealth,  Journalof Business 56, 77-96.

A. 3.4% average excess return for dividend initiations.

196. Healy, Paul M. and Krishna G. Palepu, 1988, Earnings

Information Conveyed by Dividend Initiations and Omissions, Journal of Financial Economics 21, 149-176.

197. Bernhardt, Dan, J. Fiona Robertson and Ray Farrow, 1994, Testing Dividend Signaling Models, Working Paper, Queen‘sUniversity.

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198. Bernheim, Doug and Adam Wantz, 1995, A Tax-based Test of the Dividend Signaling Hypothesis,  American Economic Review85, 532-551.

199. Michaely, Roni, Richard H. Thaler and Kent Womack, 1995, Price

Reactions to Dividend Initiations and Omissions: Overreaction orDrift? Journal of Finance 50 (2), 573-608.

200. Amihud, Yakov and Maurizio Murgia, 1997, Dividends, taxes,and signaling: Evidence from Germany,  Journal of Finance 52,397-408.

201. Benartzi, Shlomo, Roni Michaely and Richard Thaler, 1997, Dochanges in dividends signal the future or the past?  Journal of Finance 52, 1007-1043.

202. Grullon, Gustavo, Roni Michaely and Bhaskaran Swaminathan,2003, Are dividend changes a sign of firm maturity? The Journalof Business 75, 387-424.

Agency

203. Kalay, Avner, 1982, Stockholder-Bondholder Conflict andDividend Constraint,  Journal of Financial Economics 14, 423-449.

204. Handjinicolaou, George and Avner Kalay, 1984, Wealth

Redistributions or Changes in Firm Value: An Analysis of Returnsto Bondholders and the Stockholders around DividendAnnouncements,“ Journal of Financial Economics 13, 35-63.

205. Lang, Larry H. P. and Robert H. Litzenberger, 1989, DividendAnnouncements: Cash Flow Signaling vs. Free Cash FlowHypothesis, Journal of Financial Economics 24, 181-192.

206. DeAngelo, Harry and Linda DeAngelo, 1990, Dividend Policy andFinancial Distress: An Empirical Investigation of Troubled NYSEFirms, Journal of Finance 45, 1415-1431.

207. Christie, William and Vikram Nanda, 1994, Free Cash Flow,ShareholderValue, and the Undistributed Profits Tax of 1936 and 1937, Journal of Finance 49, 1727-1754.

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208. Yoon, Pyung S. and Laura Starks, 1995, Signaling, InvestmentOpportunities, and Dividend Announcements, Review of Financial Studies 8, 995-1018.

209. La Porta, Rafael, Florencio Lopez-De Silanes, Andrei Shleifer,

and Robert Vishny, 2000, Agency Problems and Dividend PolicyAround the World,  Journal of Finance 55, 1-33.

210. Lie, Eric, 2000, Excess funds and the agency problems: Anempirical study of incremental disbursements, Review of Financial Studies 13, 219-248.

Transaction Costs and Other Explanations

211. Long, John B., Jr., 1978, The Market Valuation of CashDividends: A Case to Consider, Journal of Financial Economics 6,

235-264.

212. Poterba, James, 1986, The Market Valuation of Cash Dividends: The Citizens Utilities Case Reconsidered,  Journal of FinancialEconomics 15, 395-406.

213. Del Guercio, Diane, 1996, The Distorting Effect of the Prudent-Man Laws on Institutional Equity Investments,  Journal of Financial Economics 40, 31-62.

214. Hubbard, Jeff and Roni Michaely, 1997, Do Investors Ignore

Dividend Taxation? A Reexamination of the Citizen UtilitiesCase, Journal of Financial and Quantitative Analysis 32,.

Repurchases

215. Vermaelen, Theo, 1981, Common Stock Repurchases andMarket Signaling: An Empirical Study,  Journal of FinancialEconomics 9, 138-183.

216. Barclay, Michael J. and Clifford W. Smith, Jr., 1988, CorporatePayout Policy: Cash Dividends versus Open-Market

Repurchases, Journal of Financial Economics 22, 61-82.

217. Comment, Robert and Gregg Jarrell, 1991, The Relative Powerof Dutch-Action and Fixed-Priced Self-Tender Offers and OpenMarket Share Repurchases, Journal of Finance 46, 1243-1271.

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CORPORATE GOVERNANCE

Surveys

230. Shliefer, Andrei and Robert Vishny, 1997, A survey of corporate governance,

 Journal of Finance 52, 737-783.

General studies

231. Barclay, Michael and Clifford Holderness, 1989, Private benefits from control

of public corporations, Journal of Financial Economics 25, 371-395.

232. Comment, Robert, and Gregg Jarrell, 1995, Corporate focus and stock returns,

 Journal of Financial Economics 37, 67-87.

233. Comment, Robert and G. William Schwert, 1995, Poison or placebo? Evidence

on the deterrent and wealth effects of modern antitakeover measures,  Journal o

 Financial Economics 39, 3-44.

234. DeAngelo, Harry, and Linda DeAngelo, 1985, Managerial ownership of voting

rights: A study of public corporations with dual classes of common stock,

 Journal of Financial Economics 14, 33-69.

235. DeAngelo, Harry, and Edward Rice, 1983, Antitakeover amendments and

stockholder wealth, Journal of Financial Economics 11, 329-360.

236. Denis, David and Jan Serrano, 1996, Active investors and management turnover 

following unsuccessful control contests,  Journal of Financial Economics 40,

239-266.

237. Dodd, Peter, and Jerold B. Warner, 1983, On corporate governance: A study of 

 proxy contests, Journal of Financial Economics 11, 401-438.

238. Holderness, Clifford and Dennis Sheehan, 1988, The role of majority

shareholders in publicly held corporations: An exploratory analysis,  Journal of  Financial Economics 20, 317-346.

239. Jarrell, Gregg and Annette Poulsen, 1988, Shark repellents and stock prices: Theeffects of antitakeover amendments since 1980, Journal of Financial Economics19, 127-168.

240. Jarrell, Gregg and Annette Poulsen, 1988, Dual-class recapitalizations asantitakeover mechanisms: The recent evidence,  Journal of Financial Economics

20, 129-152

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241. Kaplan, Steve, 1989, The effects of management buyouts on operating

 performance and value, Journal of Financial Economics 24, 217-254.

242. Kaplan, Steve, 1991, The staying power of leverage buyouts,  Journal of 

 Financial Economics 29, 287-313.

243. Kaplan, Steve, 1994, Top executive rewards and firm performance: A

comparison of Japan and the United States,  Journal of Political Economy 102,510-546.

244. Kaplan, Steve and Bernadette Minton, 1994, Appointments of outsiders to

Japanese boards: Determinants and implications for managers,  Journal of  Financial Economics 36, 225-257.

245. Lang, Larry and Rene Stutz, 1994, Tobin’s Q, corporate diversification, and firm

 performance, Journal of Political Economy 102, 1248-1280.

246. Lease, Ronald, John McConnell, and Wayne Mikkelson, 1983, The marketvalue of control in publicly traded corporations, Journal of Financial Economics

11, 439-471.

247. Lease, Ronald, John McConnell, and Wayne Mikkelson, 1984, The market

value of differential voting rights in closely held corporations,  Journal of 

 Business 57, 443-467.

248. Malatesta, Paul and Ralph Walkling, 1988, Poison pill securities: Stockholder 

wealth, profitability, and ownership structure,  Journal of Financial Economics

30, 347-376.

249. Martin, Kenneth, and John McConnell, 1991, Corporate performance, corporate

takeovers, and management turnover, Journal of Finance 46, 671-688.

250. McConnell, John and Henri Servaes, 1990, Additional evidence on equity

ownership and corporate value, Journal of Financial Economics27, 595-612.

251. Morck, Randall, Andrei Shleifer, and Robert Vishny, 1988, Management

ownership and market valuation: An empirical analysis,  Journal of Financial 

 Economics 20, 293-315.

252. Morck, Randall, Andrei Shleifer, and Robert Vishny, 1990, Do managerial

objectives drive bad acquisitions? Journal of Finance 45, 31-48.

253. Warner, Jerrold, Ron Watts, and Karen Wruck, 1988, Stock prices and top

management changes, Journal of Financial Economics 20, 461-492.

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264. Allayanis, George and Eli Ofek, 2001, Exhchange rate exposure, hedging, and

the use of foreighn currency derivatives,  Journal of International Money and 

 Finance 20, 273 – 296

265. Geczy, Christopher, Bernadette A. Minton, and Catherine Schrand, 1997, Why

firms use currency derivatives, Journal of Finance 52, 1323-1354.

266. Tufano, Peter, 1998, The determinants of stock price exposure: Financial

engineering and the gold mining industry, Journal of Finance 53, 1015-1052.

267. Tufano, Peter, 1998, Agency costs of corporate risk management , Financial 

 Management 27 (Spring) , 67-77.

268. Tufano, Peter, 1996, Who manages risk? An empirical examination of risk 

management practices in the gold mining industry, Journal of Finance 51, 1097-

1137.