
Presidential Address: Corporate Finance and Reality
Publication
, Journal Article
Graham, JR
Published in: Journal of Finance
August 1, 2022
This paper uses surveys to document CFO perspectives on corporate planning, investment, capital structure, payout, and shareholder versus stakeholder focus. Comparing policy decisions today to those 20 years ago, I find that companies employ decision rules that are conservative, sticky, and geared to time the market; rely on internal forecasts that are miscalibrated and considered reliable only two years ahead; and emphasize corporate objectives that focus increasingly on stakeholders and revenues. These practice of corporate finance themes can discipline academic models toward better explaining outcomes. Models of satisficing decision-making or costly managerial biases align with many of the themes.
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Published In
Journal of Finance
DOI
EISSN
1540-6261
ISSN
0022-1082
Publication Date
August 1, 2022
Volume
77
Issue
4
Start / End Page
1975 / 2049
Related Subject Headings
- Finance
- 1502 Banking, Finance and Investment
Citation
APA
Chicago
ICMJE
MLA
NLM
Graham, J. R. (2022). Presidential Address: Corporate Finance and Reality. Journal of Finance, 77(4), 1975–2049. https://doi.org/10.1111/jofi.13161
Graham, J. R. “Presidential Address: Corporate Finance and Reality.” Journal of Finance 77, no. 4 (August 1, 2022): 1975–2049. https://doi.org/10.1111/jofi.13161.
Graham JR. Presidential Address: Corporate Finance and Reality. Journal of Finance. 2022 Aug 1;77(4):1975–2049.
Graham, J. R. “Presidential Address: Corporate Finance and Reality.” Journal of Finance, vol. 77, no. 4, Aug. 2022, pp. 1975–2049. Scopus, doi:10.1111/jofi.13161.
Graham JR. Presidential Address: Corporate Finance and Reality. Journal of Finance. 2022 Aug 1;77(4):1975–2049.

Published In
Journal of Finance
DOI
EISSN
1540-6261
ISSN
0022-1082
Publication Date
August 1, 2022
Volume
77
Issue
4
Start / End Page
1975 / 2049
Related Subject Headings
- Finance
- 1502 Banking, Finance and Investment