Effects of Nominal Contracting on Stock Returns
Bibliographic Data
| ID | 10171518 |
|---|---|
| Authors | Kenneth R French (0000-0002-3721-8025), Richard S Ruback, G William Schwert |
| Year | 1983 |
| Volume | 91 |
| Issue | 1 |
| Pages | 70-96 |
| Publication date | 1983-02-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0022-3808 • E-ISSN: 1537-534X |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/261129 |
| OpenAlex | W1978433181 |
| Language | EN |
| Citations received | 2 |
| References cited | 18 |
This paper examines the effects of unexpected inflation on the returns to the common stock of companies with different short-term monetary positions, and different long-term monetary positions, and different amounts of nominal tax shields. Unlike most previous studies of the effects of nominal contracting, we distinguish between expected and unexpected inflation in our tests. Surprisingly, over the 1947-79 period there is little evidence that stockholders of net debtor firms benefit from unexpected inflation relative to the stockholders of net creditor firms. We conclude that wealth effects caused by unexpected inflation are not an important factor in explaining the behavior of stock prices
Corporate governance · Creditor · Debt · Debtor · Economics · Inflation (cosmology · Macroeconomics · Monetary economics · Monetary policy · Shareholder · Stock (firearms · Wealth effect · Auditing, Earnings Management, Governance · Corporate Finance and Governance · Finance · Financial Markets and Investment Strategies
| Unique citing works | 2 |
|---|---|
| Citations per year | 0.05 |
| Citation span | 1989 - 2002 (14) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 2 |