Smith Breeden Prize

The 2007 Smith Breeden Prize plaque

The Smith Breeden Prize is an annual prize given to authors with the best finance research papers published in the Journal of Finance in any area other than corporate finance.

The Award

Each year the associate editors of the Journal of Finance award five papers for excellence. The two best finance papers in the subfield of corporate finance and the three best other papers from among all those papers that appeared in the first five issues of that year and in the December issue from the previous year are awarded prizes at the annual American Finance Association in January of the following year. Currently the Smith Breeden prizes are $10,000 for first place and $5,000 for second, but these amounts may change from time to time. Although the prize is funded by Smith Breeden Associates Inc., the administration of the Smith Breeden Prize is the responsibility of the Editor of The Journal of Finance and is carried out in conjunction with the selection of the Brattle Prizes. Associate Editors vote for the best two corporate finance papers (for the Brattle Prizes) and the best three other papers (for the Smith-Breeden Prizes). The papers receiving the most votes in their categories receive the prizes; however, a paper may not win in both categories.^[1]

The Journal of Finance is one of the most prestigious and highly cited journals in finance and economics. Each year hundreds of papers are submitted for publication. In 2006, there were 1239 submissions (1037 new manuscripts), 86 articles published, and 8 Smith Breeden Prize nominees from which 1 first place winning paper and two second place distinguished papers were chosen.^[2]

Winners

Paper	Author(s)	Year	Issue
"Original Issue High yield Bonds: Aging Analyses of Defaults, Exchanges, and Calls"[3]	Paul Asquith, David W. Mullins, Jr., and Eric D. Wolff	1989	September 1989
"Margin Regulation and Stock Market Volatility"[4]	David A. Hsieh and Merton H. Miller	1990	March 1990
"The Long-Run Performance of Initial Public Offerings"[5]	Jay R. Ritter	1991	March 1991
"The Cross-Section of Expected Stock Returns"[6]	Eugene F. Fama and Kenneth R. French	1992	June 1992
"An Empirical Analysis of Illegal Insider Trading[7]	Lisa K. Meulbroek	1993	December 1992
"The Benefits of Lending Relationships: Evidence from Small Business Data"[8]	Mitchell A. Petersen and Raghuram G. Rajan	1994	March 1994
"Why Do NASDAQ Market Makers Avoid Odd-Eighth Quotes?"[9]	William G. Christie and Paul Schultz	1995	December 1994
"On the Predictability of Stock Returns: An Asset-Allocation Perspective"[10]	Shmuel Kandel and Robert F. Stambaugh	1996	June 1996
"Evidence on the Characteristics of the Cross Sectional Variation in Stock Returns"[11]	Kent Daniel and Sheridan Titman	1997	March 1997
"How Costly is Financial (not Economic) Distress? Evidence from Highly Leveraged Transactions that Became Distressed"[12]	Gregor Andrade and Steven N. Kaplan	1998	October 1998
"Investor Psychology and Security Market Under - and Overreaction"[13]	Kent Daniel, David Hirshleifer, and Avanidhar Subrahmanyam	1999	December 1998
"Home Bias at Home: Local Equity Preference in Domestic Portfolios"[14]	Joshua D. Coval and Tobias J. Moskowitz	2000	December 1999
"Have Individual Stocks Become More Volatile: An Empirical Exploration of Idiosyncratic Risk"[15]	John Y. Campbell, Martin Lettau, and Burton G. Malkiel, and Yexiao Xu	2001	February 2001
"Limited Arbitrage in Equity Markets"[16]	Mark Mitchell, Todd Pulvino and Erik Stafford	2002	April 2002
"Stock Valuation and Learning about Profitability"[17]	Luboš Pástor and Pietro Veronesi	2003	October 2003
"Hedge Funds and the Technology Bubble"[18]	Markus K. Brunnermeier and Stefan Nagel	2004	October 2004
"Do Behavioral Biases Affect Prices?"[19] "The Value Premium"[20]	Joshua D. Coval and Tyler Shumway Lu Zhang	2005(tie)	February 2005 February 2005
"The Price Impact and Survival of Irrational Traders"[21]	Leonid Kogan, Stephen A. Ross, Jiang Wang, and Mark M. Westerfield	2006	February 2006
"Giving Content to Investor Sentiment: The Role of Media in the Stock Market"[22]	Paul C. Tetlock	2007	June 2007
"Collective Risk Management in a Flight to Quality"	Ricardo J. Caballero and Arvind Krishnamurthy	2008	October 2008
"Risk in Dynamic Arbitrage: The Price Effects of Convergence Trading"	Péter Kondor	2009	April 2009
"Levered Returns"	Joao F. Gomes and Lukas Schmid	2010	April 2010

Notes

1. "Prizes and Awards". American Finance Association. Retrieved 2007-09-10.
2. Harvey, Cam (2007-03-13). "Journal of Finance Editor's Report". American Finance Association. Retrieved 2007-09-10.
3. "Abstracts of Smith Breeden Prize Winning Papers (1989)". American Finance Association. Retrieved 2007-09-11.
4. "Abstracts of Smith Breeden Prize Winning Papers (1990)". American Finance Association. Retrieved 2007-09-11.
5. "Abstracts of Smith Breeden Prize Winning Papers (1991)". American Finance Association. Retrieved 2007-09-11.
6. "Abstracts of Smith Breeden Prize Winning Papers (1992)". American Finance Association. Retrieved 2007-09-11.
7. "Abstracts of Smith Breeden Prize Winning Papers (1993)". American Finance Association. Retrieved 2007-09-11.
8. "Abstracts of Smith Breeden Prize Winning Papers (1994)". American Finance Association. Retrieved 2007-09-11.
9. "Abstracts of Smith Breeden Prize Winning Papers (1995)". American Finance Association. Retrieved 2007-09-11.
10. "Abstracts of Smith Breeden Prize Winning Papers (1996)". American Finance Association. Retrieved 2007-09-11.
11. "Abstracts of Smith Breeden Prize Winning Papers (1997)". American Finance Association. Retrieved 2007-09-11.
12. "Abstracts of Smith Breeden Prize Winning Papers (1998)". American Finance Association. Retrieved 2007-09-11.
13. "Abstracts of Smith Breeden Prize Winning Papers (1999)". American Finance Association. Retrieved 2007-09-11.
14. "Abstracts of Smith Breeden Prize Winning Papers (2000)". American Finance Association. Retrieved 2007-09-11.
15. "Abstracts of Smith Breeden Prize Winning Papers (2001)". American Finance Association. Retrieved 2007-09-11.
16. "Abstracts of Smith Breeden Prize Winning Papers (2002)". American Finance Association. Retrieved 2007-09-11.
17. "Abstracts of Smith Breeden Prize Winning Papers (2003)". American Finance Association. Retrieved 2007-09-11.
18. "Abstracts of Smith Breeden Prize Winning Papers (2004)". American Finance Association. Retrieved 2007-09-11.
19. "Abstracts of Smith Breeden Prize Winning Papers (2005)". American Finance Association. Retrieved 2007-09-11.
20. "Abstracts of Smith Breeden Prize Winning Papers (2005)". American Finance Association. Retrieved 2007-09-11.
21. "Abstracts of Smith Breeden Prize Winning Papers (2006)". American Finance Association. Retrieved 2007-09-11.
22. "Abstracts of Smith Breeden Prize Winning Papers (2007)". American Finance Association. Retrieved 2008-05-13.