Table Of Content

INDEX TO VOLUME LXII ARTICLES A Theory of Friendly Boards .......... Financial Speculators’ Underperfor- Renée B. Adams and mance: Learning, Self-Selection, and Daniel Ferreira Endogenous Liquidity Adaptive Traders and the Design of Fi- Reza Mahani NIAMICIGE NROUMOOR 6 o6is0c csee0sac0ese s and Dan Bernhardt Sebastien Pouget Giving Content to Investor Sentiment: Bidding into the Red: A Model of Post- The Role of Media in the Stock Mar- Auction Bankruptcy Simon Board Paul C. Tetlock Common Failings: How Corporate De- Global Growth Opportunities and Mar- faults Are Correlated ket Integration Sanjiv R. Das, Geert Bekaert, Darrell Duffie, Campbell R. Harvey, Nikunj Kapadia, Christian Lundblad, and Leandro Saita and Stephan Siegel Corporate Bond Market Transaction Habit Formation and Macroeconomic Costs and Transparency : Models of the Term Structure of In- Amy K. Edwards, terest Rates Lawrence E. Harris, Andrea Buraschi and Michael S. Piwowar and Alexei Jiltsov 3009 Corporate Governance and Acquirer How Costly Is External Financing? Ev- ROGRUINIIE sock ceric cddscksinntmches idence from a Structural Estimation Ronald W. Masulis, Christopher A. Hennessy Cong Wang, and Toni M. Whited and Fei Xie How Laws and Institutions Shape Fi- Corporate Governance and Firm Value: nancial Contracts: The Impact of the 2002 Governance Loans . ONE asa iinaes ee Tere Jun Qian and Vidhi Chhaochharia Philip E. Strahan and Yaniv Grinstein How Smart Is Smart Money? A Two- Corporate Yield Spreads and Bond Liq- Sided Matching Model of Venture uidity Capital . Morten Sorensen David A. Lesmond, Incentive Effects of Stock and Op- and Jason Wei tion Holdings of Target and Acquirer Do Tests of Capital Structure Theory CEQs.... Mean What They Say?..... fe Jie Cai and Ilya. A. Strebulaer Anand M. Vijh Efficiency and the Bear: Short Sales Information Cascades: Evidence from and Markets Around the World a Field Experiment with Financial Arturo Bris, Market Professionals William N. Goetzmann, Jonathan E. Alevy, and Ning Zhu 1029 Michael S. Haigh, Equilibrium Exhaustible Resource and John A. List Price Dynamics ... Interest Rate Caps “Smile” Too! But Can the LIBOR Market Models Cap- Zeigham Khokher, ture the Smile? and Sheridan Titman 1663 Robert Jarrow, Executive Financial Incentives and Haitao Li, Payout Policy: Firm Responses to the and Feng Zhao 2003 Dividend Tax Cut. sits Is the Corporate Loan Market Globally Jeffrey R. Brown, Integrated? A Pricing Puzzle ; Nellie Liang, Mark Carey and Scott Weisbenner 1935 and Greg Nini The Journal of Finance Lazy Investors, Discretionary Con- Simple Forecasts and Paradigm sumption, and the Cross-Section of Shifts. Stock Returns........ Harrison Hong, Ravi Jagannathan Jeremy C. Stein, and Yong Wang and Jialin Yu Learning by Observing: Information Sports Sentiment and Stock Spillovers in the Execution and Val- Returns .. uation of Commercial Bank M&As.. Alex Edmans, Gayle Delong and Diego Garcia, Robert. Deyoung and Oyvind Norli Long-Term Return Reversals: Overre- Stochastic Volatilities and Correlations action or Taxes?. ; of Bond Yields... Thomas J. George Bing Han and Chuan-Yang Hwang Strategic Actions and Credit Spreads: Lower Salaries and No Options? On An Empirical Investigation the Optimal Structure of Executive Sergei A. Davydenko and Ilya A. Strebulaev 2633 Ingolf Dittmann The Impact of Collateralization on and Ernst Maug Swap Rates Measuring Distress Risk: The Effect of Michael Johannes R&D Intensity cae dow oateNatess and Suresh Sundaresan Laurel A. Franzen, The Initial Public Offerings of Listed Kimberly J. Rodgers, Firms eee and Timothy T. Simin Francois Derrien Model Specification and Risk Premia and Ambrus Kecskés Evidence from Futures Options. . The Risk-Adjusted Cost of Financial Mark Broadie, Distress Mikhail Chernov, Heitor Almeida and Michael Johannes and Thomas Philippon Optima! Debt and Equity Values in the The Takeover Deterrent Effect of Open Presence of Chapter 7 and Chapter Market Share Repurchases .. Matthew T. Billett Mark Broadie, and Hui Xue Mikhail Chernov, The US. Treasury Buyback Auc- and Suresh Sundaresan tions: The Cost of Retiring Illiquid Participation Costs and the Sen 3onds sitivity of Fund Flows to Past Performance ........ ne Francis A. Longstaff, Jennifer Huang, and Craig Merrill Kelsey D. Wei, The Underw Persistence Phe- and Hong Yan nomenon Pay Me Later: Inside Debt and Its Role 1169 in Managerial Compensation The Value of Corporate Risk Manage- Rangarajan K. Sundaram and David ment biomes L. Yermack Peter Mackay Presidential Address: Issuers, Under- and Sara B. Moeller writer Syndicates, and Aftermarket The Value of Embedded Real Options: Transparency ; Evidence from Consumer Automo- Richard C. Green bile Lease Contracts si Rational Inattention and Portfolio Se Carmelo Giaccotto, lection . Gerson M. Goldberg, Lixin Huang / Shantaram P. Hegde and Hong Liu Deregulation, Small Report of the Editor of The Journal of ind Interstate Insur- Finance for the Year 2006 al Income.... Campbell R. Harvey Yuliya Demyanyk, Reputation Effects in Trading on the Charlotte Ostergaard, New York Stock Exchange “ree and Bent E. Sorensen Robert Battalio, ind Information Aggre- Andrew Ellul, and Robert Jennings Security Design with Investor Private Christopher C. Geczy, Information David K. Musto, l If Axe lson and Adam V. Reed Index to Volume LXII Whom You Know Matters: Venture Why Do Firms Issue Equity? Capital Networks and Investment Amy Dittmar Performance and Anjan Thakor Why Is Long-Horizon Equity Less Alexander Ljunggvist, Risky? A Duration-Based Explana- and Yang Lu tion of the Value Premium Why Do Firms Become Widely Held? Martin Lettau An Analysis of the Dynamics of Cor- and Jessica A. Wachter porate Ownership.... Working Orders in Limit Order Mar- kets and Floor Exchanges........... Christo Pirinsky, Kerry Back and and René M. Stulz 995 Shmuel Baruch INDEX TO VOLUME LXII AUTHORS ApamMs, RENEE B. “A Theory of Friendly CHHAOCHHARIA, VIDHI “Corporate Gover- Boards” Jane nance and Firm Value: The Impact of ALEVY, JONATHAN E. “Information Cas- the 2002 Governance Rules” cades: Evidence from a Field Experi- CHRISTOFFERSEN, SUSAN E.K. “Vote Trad- ment with Financial Market Profes- ing and Information Aggregation” .. Das, Sanstv R. “Common Failings: How Corporate Defaults Are Correlated”. DavyDENKO, SERGEI A. “Strategic Actions AXELSON, ULF “Security Design with In- and Credit Spreads: An Empirical In- vestor Private Information” vestigation” .. Back, Kerry “Working Orders in Limit DELONG, GAYLE “Learning by Observing: Order Markets and Floor Exchanges” Information Spillovers in the Exe- 3ARUCH, SHMUEL (see Back) cution and Valuation of Commercial BatTaLio, RoBerT “Reputation Effects in Bank M&As”... Trading on the New York Stock Ex- DemyAnyYk, Yuttya “U.S. Banking Dereg- change” > ulation, Small Businesses, and Inter- BEKAERT, GEERT “Global Growth Oppor- state Insurance of Personal Income” tunities and Market Integration” ... DERRIEN, Francois “The Initial Public 3ERNHARDT, Dan (see Mahani) Offerings of Listed Firms” Bittett, Mattuew T. “The Takeover De- DeyounG, Rosert (see Delong) terrent Effect of Open Market Share DitrMann, INGoLF “Lower Salaries and Repurchases” No Options? On the Optimal Struc- Boarb, Simon “Bidding into the Red: A ture of Executive Pay” Model of Post-Auction Bankruptcy”. Ditrmar, Amy “Why Do Firms Issue Eq- Bris, ARTURO “Efficiency and the Bear: uity?” : Short Sales and Markets Around the DurFi£, DARRELI World” 1029 Epmans, ALEX “Sports Sentiment and 3ROADIE, Mark “Model Specification Stock Returns” and Risk Premia: Evidence from Fu- Epwarps, Amy K. “Corporate Bond Mar- tures Options” ket Transaction Costs and Trans- 3ROADIE, MarK “Optim: parency’...... uity Values in the Presence of Chap- ELLUL, ANDREW ( ter 7 and Chapter 11” FERREIRA, DANIEL ( 3ROWN, JEFFREY R. “Executive Financial FRANZEN, LaurEL A. “Measuring Dis- Incentives and Payout Policy: Firm tress Risk: The Effect of R&D Inten- Responses to the 2003 Dividend Tax ee Cut” Bip tit oana s Garcia, DIEGO BuRASCHI, ANDREA “Habit Formation Geczy, CHRISTOPHER C. (see Christof- and Macroeconomic Models of the fersen).... Term Structure of Interest Rates” .. 3009 GeorceE, THomas J. “Long-Term Return Cal, Jig “Incentive Effects of Stock and Reversals: Overreaction or Taxes?” . Option Holdings of Target and Ac- Giaccotro, CARMELO “The Value of Em- quirer CEOs” 1891 bedded Real Options: Evidence from Carey, Mark “Is the Corporate Loan Consumer Automobile Lease Con- Market Globally Integrated? A Pric- tracts”. ing Puzzle” 2969 GOETZMANN, WILLIAM N. (see Bris) CARLSON, MURRAY GOLDBERG, GERSON M. (see Giaccotto).. haustible Resource Price Dynamics” 1663 GREEN, RicHarp C. “Presidential Ad- CHEN, LonG “Corporate Yield Spreads dress: Issuers, Underwriter Syn- and Bond Liquidity” dicates, and Aftermarket Trans- CHERNOV, MIKHAIL (see Broadie) parency”. CHERNOV, MIKHAIL (see Broadie} GRINSTEIN, YANIV (see Chhaochharia) .. 3076 The Journal of Finance Haicu, Micuak S. (see Alevy) Manani, Reza “Financial Specula- Han, Brine “Stochastic Volatilities and tors’ Underperformance: Learning, Correlations of Bond Yields” Self-Selection, and Endogenous Han, Binc “The U.S. Treasury Buyback Liquidity” Auctions: The Cost of Retiring Illiq- Masu is, Ronatp W. “Corporate Gover- uid Bonds” nance and Acquirer Returns” Harris, LAWRENCE E. (see Edwards).... Maua, Ernst (see Dittmann) Harvey, CAMPBELL R. (see Bekaert).... MERRILL, CraiG (see Han) Harvey, CAMPBELL R. “Report of the Ed- MOELLER, Sara B. (see Mackay) itor of The Journal cf Finance for the Musto, Davin K. (see Christoffersen) . . Year 2006” NinI, GREG (see Carey) HEGDE, SHANTARAM P. (see Giaccotto)... Nor.i, @yvinp (see Edmans) HELWEGE, JEAN “Why Do Firms Be- OSTERGAARD, CHARLOTTE (see come Widely Held? An Analysis myanyk) of the Dynamics of Corporate PHILIPPON, THOMAS (see Almeida) Ownership” Pirinsky, Curisto (see Helwege) HENNESSY, CHRISTOPHER A. “How Costly Piwowar, Micuaet S. (see Edwards) ... Is External Financing? Evidence PouGEt, SEBASTIEN “Adaptive Traders from a Structural Estimation” and the Design of Financial Markets” Hoserc, GERARD “The Underwriter Per- QIAN, JUN “How Laws and Institutions sistence Phenomenon” ... Shape Financial Contracts: The Case HocuHBerG, YAEL V. “Whom You Know of Bank Loans” 2803 Matters: Venture Capital Networks Reep, Apa V. (see Christoffersen) .... 2897 and Investment Performance” Ropcers, KImBerLy J. (see Franzen)... . 2931 Hone, Harrison “Simple Forecasts and Saita, LEANDRO | 93 Paradigm Shifts” SIEGEL, STEPHAN (see Bekaert) 1081 HUANG, JENNIFER “ Simin, Timorny T. (see Franzen) 2931 and the Sensitivity of Fund Flows to SORENSEN, Bent E. (see Demyanyk).... 1 Past Performance” . S@RENSEN, M¢ N “How Smart Is Huan, Lixin “Rational Inattention and Smart Money? A Two-Sided Match- Portfolio Selection” 1999 ing Model of Venture Capital” Hwanc, CHUAN-YANG (see George) 2865 STEIN, JEREMY C. (see Hong) JAGANNATHAN, Ravi “Lazy Investors, STRAHAN, PHILIP E. (see Qian) Discretionary Consumption, STREBULAEY, ILya A. (see Davydenko)... and the Cross-Section of Stock STREBULAEY, ILya A. “Do Tests of Capital Returns” sree antes Structure Theory Mean What They JARROW, Ropert “Interest Rate Caps Say?” ... “Smile” Too! But Can the LI Sruuz, RENE M. (see Helwege) BOR Market Models Capture the SUNDARAM, RANGARAJAN K. “Pay Me Smile?” Sen ee 345 Later: Inside Debt and Its Role in JENNINGS, RoBert (see Battalio). 1243 Managerial Compensation” Jittsov, ALEXEI (see Buraschi)... 3009 SUNDARESAN, SURESH (see Broadie) JOHANNES, MICHAEL (see Broadie 1453 SUNDARESAN, SURESH (see Johannes)... JOHANNES, MICHAEL “The Impact of Col- TrETLOCK, P C. “Giving Content to In- lateralization on Swap Rates” vestor Sentiment: The Role of Media Kapapia, NIKUNJ (see Das) in the Stock Market” 1139 KECSKES, AMBRUS (see Derrien) TuHakor, AN 1 KHOKHER, ZEIGHAM (see Carlson TITMAN, SH 1663 LesmMonp, DaAv. (iseen Ch en Lae VisH, ANAND M 1891 Letrau, Martin “Why Is Long-Horizon WACHTER, JES 55 Equity Less Risky? A Duration- Wana, Cont 1851 Based Explanation of the Value Wana, Yon« 1623 Premiam ....:-..... WEI, JASON (see Chen 119 Li, Harrao (see Jarrow) . Wel, Ke! D. | see Huang) 1273 LIANG, NELLIE (see Brown). WEISBENNER, SCO (see Brown) 1935 List, JOHN A. (see Alevy) WHITED, ‘on! M. (see Hennessy) 1705 Liu, Hone (see Huang) Dealaren erN g 3 1999 XIE, Fer Masulis 1851 LJUNGALEX@ANDvER I(seSe HToch,ber g) 251 XuE, Hut (see Billett) . 1827 LonacstaFF, FRANCIS A. (see Han) Yan, Hons Huang) 1273 Lx». YANG (see Hochberg)... YERMACK, .. (see Sundaram).... 1551 iLUNDBLAD, CHRISTIAN (see Bekaert Yu, JIAl 1207 Mackay, PETER “The Value of Corporate ZHAO, FED see Jarrow) 345 Risk Management”... ZuHu, NING (see Bris 1029