Editorial: Clinical Papers and Their Role in the Development of Financial Economics

4 Pages Posted: 28 Nov 2003  

Eugene F. Fama

University of Chicago - Finance

Michael C. Jensen

Harvard Business School; SSRN; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI); Harvard University - Accounting & Control Unit

John B. Long

Simon Graduate School of Business, University of Rochester

Richard S. Ruback

Harvard Business School

G. William Schwert

University of Rochester - Simon Business School; National Bureau of Economic Research (NBER)

Clifford W. Smith

Simon Graduate School of Business, University of Rochester

Jerold B. Warner

University of Rochester – Simon Business School

Abstract

This issue of the Journal of Financial Economics contains the first set of studies in the new Clinical Papers section. The objective of this section is to provide a high-quality professional outlet for scholarly studies of specific cases, events, practices, and specialized applications. By supplying insights about the world, challenging accepted theory, and using unique sources of data, clinical studies stand on their own as an important medium of research. Like the medical literature from which the term 'clinical' is borrowed, these articles will frequently deal with individual situations or small numbers of cases of special interest. The JFE intends to take a leading role in encouraging clinical studies, guided by the confidence that expanding our research agenda and providing an outlet for this work will enliven and enrich professional knowledge. We expect these clinical studies to stimulate new high-quality empirical and theoretical research,

Innovation in financing techniques, deregulation, reregulation, and changes in the organization and conduct of commerce are proceeding at a rapid rate. New products and practices are appearing constantly, and the roles and activities of financial institutions are changing dramatically. New ways to communicate these interesting changes to the scientific community are required because the changes provide tests of leading theories and suggest new problems of theoretical interest. Clinical papers, inspired primarily by actual events, can play an important role in this discovery and communication process and, therefore, in the evolution of the science of finance.

The advantages of specialization imply that different groups of researchers will tend to concentrate on theory, empirical tests, and clinical studies. These three groups complement each other. Theory provides logical discipline and precise hypotheses for both empirical and clinical research. Empirical tests direct theorists by identifying irrelevant models and suggest where clinical research might find counterexamples. Clinical studies help set the agenda for both theory and empirical work. Because of this complementarity and the importance of communication between these groups, the Journal of Financial Economics is committed to publishing all three types of research.

Keywords: Clinical Papers, case studies, perfect and imperfect markets

Suggested Citation

Fama, Eugene F. and Jensen, Michael C. and Long, John B. and Ruback, Richard S. and Schwert, G. William and Smith, Clifford W. and Warner, Jerold B., Editorial: Clinical Papers and Their Role in the Development of Financial Economics. Available at SSRN: https://ssrn.com/abstract=466661

Eugene F. Fama

University of Chicago - Finance ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-702-7282 (Phone)
773-702-9937 (Fax)

Michael C. Jensen (Contact Author)

Harvard Business School ( email )

Soldiers Field
Negotiations, Organizations & Markets
Boston, MA 02163
United States
617-510-3363 (Phone)
305-675-3166 (Fax)

HOME PAGE: http://drfd.hbs.edu/fit/public/facultyInfo.do?facInfo=ovr&facId=6484

SSRN ( email )

7858 Sanderling Road
Sarasota, FL 34242
United States
617-510-3363 (Phone)
305 675-3166 (Fax)

HOME PAGE: http://ssrn.com/author=9

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

European Corporate Governance Institute (ECGI) ( email )

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

Harvard University - Accounting & Control Unit ( email )

Soldiers Field
Boston, MA 02163
United States

John B. Long

Simon Graduate School of Business, University of Rochester ( email )

Carol Simon Hall 3-208
Rochester, NY 14627
United States
585-275-3358 (Phone)

Richard S. Ruback

Harvard Business School ( email )

Boston, MA 02163
United States
617-495-6422 (Phone)
617-496-8443 (Fax)

G. William Schwert

University of Rochester - Simon Business School ( email )

Carol Simon Hall 3-110L
Rochester, NY 14627
United States
585-275-2470 (Phone)
585-461-5475 (Fax)

HOME PAGE: http://schwert.ssb.rochester.edu

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Clifford W. Smith

Simon Graduate School of Business, University of Rochester ( email )

Carol Simon Hall 3-202C
Rochester, NY 14627
United States
585-275-3217 (Phone)
585-442-6323 (Fax)

Jerold B. Warner

University of Rochester – Simon Business School ( email )

Carol Simon Hall 3-160H
Rochester, NY 14627
United States
585-275-2678 (Phone)
585-442-6323 (Fax)

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