The Journal of Finance

Style Guidelines
September 2008
I. BO! OF "#"$%&'O(T$(T G)I$*I($S
General Te+t
#ll te+t must be double,spaced.
Text must be in literary present tense throughout. For example, "we predict the dependent
variable" rather than "we predicted the dependent variable." Use past tense when describing
historical events. For example, "investors sold shares in our sample" rather than "investors sell
shares in our sample."
Do not use all caps for any text.
Grammar, spelling, and punctuation corrections must be made.
Do not start a sentence with notations i.e., variables!.
"dverb phrases do not need to be hyphenated e.g., actively managed, not actively#managed!.
$ullet points or small roman numerals e.g., i!, ii!, etc.! may be used to list items.
%lease indicate the location of the figures and tables in the text.
ates
Dates should be written as &'() to &'') in the text. &'()*') or &'()*&'') is o+ay for tables
although it should be consistent.
-ath&.ariables
)se the percent symbol /01 for percenta2es3 not the 4ord 5percent.6
,engthy mathematical proofs and very extensive detailed tables should be placed in an appendix
or omitted entirely.
"ll e-uations, except very short mathematical expressions, should be displayed on a separate line
and centered.
.-uations should be numbered consecutively in the right margin with "rabic numerals in
parentheses.
/eferences to variables in the body of the paper after its introduction and in e-uations!, whether
a name or letter, should be italici0ed. .xamples1 p#value, t#statistic, Dummy-Year.
2ax .34x45 is a 6problem7 or 6expression7 8ee 9ariable 8election for %ortfolio :hoice by "it#
8ahalia and $randt, "ugust ;))&, <=1>!.
#bstract
The abstract should be double#spaced and not more than &)) words.
Sections and Subsections
The introduction is not numbered as a separate section, nor is it titled.
?nly the very first paragraph of the introduction is not indented. "ll subse-uent paragraphs are
indented.
8ection @ should be the first section following the introduction.
The final paragraph of the introduction should outline the remainder of the paper.
8ections are numbered with /oman numerals. 8ubsection headings should be lettered ", $, :,
etc.
8ubsubsection headings should be lettered ".&., ".;., etc. 8ee format examples below.!
#ppendices
"ppendices should be lettered ", $, :, etc.
@f there is only one appendix, there is no need to letter it ".
Tables within an appendix should be lettered "@.
.-uations within the appendix should be numbered "&, ";, etc.
Tables
Tables are numbered with /oman numerals and must have a title and descriptive legend.
The legend must define all variables and briefly explain what the table shows.
Tables must be self#contained, re-uiring no further information from other sources to ma+e them
understandable.
@ndicate the location of the tables in the margin of the text of the paper.
Fi2ures
Figures are numbered with "rabic numerals and must have a caption. There should also be a
descriptive legend if necessary to explain what the figure shows.
@ndicate the location of the figures in the margin of the text of the paper.
Figures must be camera#ready with all axes labeled.
Footnotes
Footnotes must be on a separate page at the end of the paper and double#spaced.
The initial footnote identifying the authors! etc. should be mar+ed with an asteris+ and placed at
the bottom of the title page.
The number of footnotes must not exceed the number of pages within the article.
Footnotes in tables should be limited to technical information such as levels of significance. "ll
other information belongs in the legend.
%eferences
/eferences in the text are by authors! name and date of publication. For example, Tufano &''=!
or Tufano &''=!!.
Use 6et al.7 when referencing a source with four or more authors. For example1 ,even et al.
&'''!!.
"ll references mentioned in the text must be included in the list of references and vice versa.
/eferences must be on a separate page at the end of the paper, unnumbered and double spaced.
/eferences must include first names of all authors.
/eferences to data sources within the body of the paper or the tables should be italici0ed.
/esearchAconsulting firms do not need to be referenced.
%ersonal communications should be left as footnotes.
II. S$'TIO(#* FO%-#TS
Title %age
Title of "aper
"UTB?/8! FU,, C"2.88!D
3@f multiple, separate by comma or 6and7 before final name.5
#BST%#'T
Text of abstract is strictly limited to &)) words, is slightly indented from
margins, and text is bloc+ Eustified.
DThe university of each professor. The authors! than+s! . . . use full names for all
ac+nowledgments. "uthors may also ac+nowledge participants at conferences and any funding from
special sources.
$ody of %aper
I. 7ere Is the Title of the First Section
@ndent the first line of all paragraphs. Fxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxx
A. This Is the Format for Subsection A
A.1. This Is the Format for a Subsection of a Subsection
@ndent paragraph
A.2. This Is the Format for a Subsection of a Subsection
@ndent paragraph
B. This Is the Format for Subsection B
B.1 Regression ariab!es 3for example5
Bere is a list of the regression variables we used in our paper. Fxxxxxxxxxxxxxxxxxxx xxxxxx
ARIAB"#1 * xxxxxxxxxxxxxxxxx
ARIAB"#2 * xxxxxxxxxxxxxxxxx
B.2. #$p!anatory ariab!es 3for example5
Firm si%e1 ,ogarithm of the number of firm employees in &'';. 8ource1 82F.
Firm !e&erage1 /atio of total sales in &''> to beginning#of#period total ban+ debt. 8ource1 82F sales!
and :/ ban+ debt!.
$ody of %aper cont.!
'. Formu!as an( #mpirica! )o(e!
The basis of our model relies on the e-uation 3for example5
a G b H c, &!
where
a#! H #3( G *5. ;!
?ptimal trading, given this physical nonnegativity constraint, implies that e-uilibrium spot prices
and aggregate inventory must Eointly satisfy
+ H & G f3,5 Ia!
, f3-5 G ;I Ib!
D. #mpirica! Imp!ications 3for example5
Bere is an example of how propositions, proofs, and corollaries should be given in the paper.
Fxxxx xxxxxxxxxxxxx xxxxxxxxxxxxxxxxxx xxxxxxxxxxxxx
%/?%?8@T@?C &1 The e.ui!ibrium /ith sing!e ban*ing (escribe( in +roposition 1 obtains /hen the
probabi!ity of a !i.ui(ity crisis4
+roof1 8ee "ppendix " 3or the proof may be given here5
:?/?,,"/J &.& @nventory!1 'onsi(er t/o in&entory processes4
%/?%?8@T@?C ;1 " stationary rational expectations e-uilibrium exists and has the following properties1
a! the e.ui!ibrium in&entory4
b! a uni.ue finite upper boun(0for a!! &ariab!es1 an(
c! the e.ui!ibrium spot price0for a!! &ariab!es.
:?/?,,"/J ;.& %roperties of 2!1 In a rationa! e$pectations e.ui!ibrium4
:?/?,,"/J ;.; /egeneration!1 In the rationa! e$pectations e.ui!ibrium /ith4
"ppendix .xamples
#ppendi+ #. "roofs
3Cote1 @f there is only one appendix, then ,.22" &5
,.22" "&1 -i&en the finite hori%on1 &ariab!es4
+roof of "emma A11 To prove that condition <! is sufficient, notice that expected profits of
uninformed lenders is 4xxxxxxxxxxxxxxxx4 To this end, rewrite e-uation I! as
a G b H c, "&!
where
a#! H #3( G *5. ";!
III. %$F$%$('$ FO%-#TS /$+amples1
Periodicals8
8choles, 2yron, &''&, 8toc+ and compensation, 2ourna! of Finance >=, ()I*(;I.
Kright, $rian D., and Lefrey :. Killiams, &'(', " theory of negative prices for storage, 2ourna! of
Futures )ar*ets ', &*&I.
8chwert, G. Killiam, &''I, The 2ourna! of Financia! #conomics1 " retrospective evaluation &'M>*'&!,
2ourna! of Financia! #conomics II, I='*>;>.
Monograph (Books)8
Fama, .ugene F., and 2erton B. 2iller, &'M;, The Theory of Finance The Dryden %ress, Binsdale, @,!.
Neynes, Lohn 2aynard, &'I), A Treatise on )oney1 o!. II 2acmillan, ,ondon!.
Contributions to Collective Work8
Grossman, 8anford L., and ?liver D. Bart, &'(;, :orporate financial structure and managerial incentives,
in Lohn L. 2c:all, ed.1 The #conomics of Information an( 3ncertainty University of :hicago %ress!.
Government Documents8
8ecurities and .xchange :ommission /elease Co. ;>#;>>=, &'>).
Cational "ssociation of 8ecurities Dealers, &''(, 4otice to )embers 56-66.
:ommittee on Kays and 2eans, U.8. Bouse of /epresentatives, &'';, 7&er&ie/ of #ntit!ement
+rograms1 1552 -reen Boo*.
Nennic+ell, "rthur, &'';, @mputation of the &'(' survey of consumer finances1 2ultiple imputation and
stochastic relaxation, manuscript, Federal /eserve $oard.
U.N. %arliament, &'=), :ommittee on the Kor+ing of the 2onetary 8ystem 3/adcliffe :ommittee5,
%rincipal memoranda of evidence, 9ol. &, ,ondon.
Magazines and Nespapers8
The #conomist, &''(, ?vercharging underwriters, Lune ;M.
2orgenson, Gretchen, &''(, 8toc+ options are not a free lunch, Forbes, 2ay &(.
,owenstein, /oger, &''M, 8treetOs incredible unshrin+ing spread, 8a!! Street 2ourna!, "pril &), :&.
!niversit" Papers8
$uchins+y, 2oshe, and ?ved Josha, &''<, .valuating the probability of failure of a ban+ing firm, :owles
Foundation Discussion paper no. &&)(, Jale University.
?ngena, 8teven, and David :. 8mith, &''(, Khat determines the number of ban+ relationshipsP :ross#
country evidence, Unpublished manuscript, Corwegian 8chool of 2anagement.
"ng, "ndrew, and Geert $e+aert, &''(, /egime switches in interest rates, C$./ Kor+ing paper =<)(,
8tanford University.
:larida, /ichard, Lordi Gali, and 2ar+ Gertler, &''M, 2onetary policy rules and macroeconomic stabilityQ
.vidence and some theory, mimeo, :olumbia University.
/outledge, $ryan /., Duane L. 8eppi, and :hester 8. 8patt, &''', The 6spar+ spread71 "n e-uilibrium
model of cross#commodity price relationships in electricity, Kor+ing paper, :arnegie 2ellon University.
#nstitutes and $oundations8
:onroy, /obert, /obert 8. Barris, and Joung %ar+, &''>, Ana!ysts9 #arnings Forecast Accuracy in
2apan an( the 3nite( Sates, The /esearch Foundation of The @nstitute of :hartered Financial "nalysts,
"ugust.
,ivingston, 2iles, and Davis Gregory, &'(', The Stripping of 3.S. Treasury Securities 8alomon
$rothers :enter for the 8tudy of Financial @nstitutions, Cew Jor+ University, Cew Jor+!.
%esearch&Data 'ources8
Ber0feld, Thomas L., The Thomas 2. ,er%fe!( #ncyc!ope(ia of '!ose(-#n( Fun(s, &'('A'), &'')A'&,
&''&A';, and &'';A'I Thomas L. Ber0feld "dvisors, @nc., 2iami, F,!.
8iesenberger9s Statistica! Sur&ey of '!ose(-#n( In&estment 'ompanies, various years.