The Review of Financial Studies

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News

June 13, 2009:

The annual RFS members' meeting will start at 5pm in the Marriott's Santa Rosa Room on June 19. (Who is a member? Anybody that either subscribes to the journal, has submitted a paper in the past year, or has paid the annual membership fee.) At 6pm the RFS and BGI will host a reception for all attending the WFAs in the Marriott's Seaview Room. We hope to see you at both events.

June 9, 2009:

MAJOR NEW WEB PAGE ADDITION! The RFS is pleased to announce that it is now accepting and posting on line material to accompany its published papers. If you have material that you would like to make available to the public we encourage you to send them in for posting. Go to the Paper Addenda Guidelines page for directions on how to do so.

If you want to see if an article has material on line (like databases, parameter estimates, program code, or a technical appendix) check the Addenda page. If there is material you would like but we do not have please let us know. Perhaps your request will help encourage the author to then make the material available on line.

We hope this new page and it accompanying files will further help our profession's overall research agenda.

June 3, 2009:

Decisions regarding submissions to the RFS-Yale Financial Crisis have now gone out. If you have not heard from the organizers one way or the other please contact them.

Send comments regarding this web page to Matthew Spiegel.

Turnaround:
Mean: 55.07 days
Median: 50 days
Total Submissions
(since 07/04/08): 1014
Acceptance Rate: 9.31%

Conference Announcements

The Financial Crisis
July 11 and 12, 2009
Yale School of Management
New Haven, CT
SUBMISSION DEADLINE: May 1, 2009

Texas Finance Festival
April 24 and 25, 2009
AT&T Executive Education and Conference Center
Austin, Texas
SUBMISSION DEADLINE: February 1

COLOR Pages!
The RFS publishes pages in color! The service fee is $600 per figure and just covers the journal's costs.

Forthcoming in the RFS

Size and Focus of a Venture Capitalist\'s Portfolio
by Paolo Fulghieri and Merih Sevilir

We take a portfolio approach to analyze the investment strategy of a venture capitalist (VC) and show that portfolio size and scope affect both the entrepreneurs\' and the VC\'s incentives to exert effort. A small portfolio improves entrepreneurial incentives because it allows the VC to concentrate the limited human capital on a smaller number of startups, adding more value. A large and focused portfolio is beneficial because it allows the VC to reallocate the limited resources and human capital in the case of startup failure and allows the VC to extract greater rents from the entrepreneurs. We show that the VC finds it optimal to limit portfolio size when startups have higher payoff potential—that is, when providing strong entrepreneurial incentives is most valuable. The VC expands portfolio size only when startup fundamentals are more moderate and when he can form a sufficiently focused portfolio. Finally, we show that the VC may find it optimal to engage in portfolio management by divesting some of the startups early since this strategy allows him to extract a greater surplus.

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