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Julian Franks

Professor of Finance


BA (Sheffield), MBA (Columbia), PhD (London)

Professor Julian Franks’ research focuses on bankruptcy and financial distress, corporate ownership and control, cost of capital and regulation. His work with Colin Mayer and Stefano Rossi (on ownership and control) has won two international prizes. Two of his published papers have been awarded prizes for the best paper of the year.


He is an associate editor of five finance journals, including editor of a new journal of Law, Finance and Accounting. He served as a member of the DTI-Treasury committee for reviewing the UK’s insolvency code in 2001 and was a member of one of the Company Law Review committees on corporate governance. He has been an advisor to Ofcom and its predecessor Oftel for more than 15 years. He also advises other UK regulatory authorities including the Office of Rail Regulation and the Office of Water Services (OFWAT).


Professor Franks has been an expert witness for the UK Government at the International Court of Justice in The Hague on an intergovernmental dispute on landing rights at Heathrow and, more recently, for the Office of Communications (Ofcom) in three appeals to the Competition Appeals Tribunal. With Professor Brealey, he advised the Office of Constitutional Affairs on the issue of outside equity for law firms and provided advice to a Treasury committee chaired by Lord Myners on a review of the governance of mutuals. 


He was recently a member of the Breedon Committee, investigating new non-bank sources of finance for small to medium-sized companies. He is a non-executive director of Oxera Consulting Limited and is on the international advisory boards of Stern Stewart. He has been a Visiting Professor at the University of California at both Berkeley and Los Angeles.

2014

Hedge fund shareholder activism in Europe

J Franks; J Hill; R Thomas; E Elgar

Book Chapter: In Hill J, Thomas R & Elgar E eds., The Handbook in Shareholder Power, 2014.

The ownership of Japanese corporations in the 20th century

Franks J; Mayer C; Miyajima H

Review of Financial Studies 2014 Vol 27:9 p 2580-2625

A study of the costs of bankruptcy and the allocation of control

Franks J; Loranth G

The Review of Finance 2014

2012

The life cycle of family ownership: International evidence

Franks J; Mayer C; Volpin P; Wagner H

Review of Financial Studies 2012 Vol 25:6 p 1675-1712

2009

Ownership: Evolution and regulation

Franks J; Mayer C; Rossi S

Review of Financial Studies 2009 Vol 22:10 p 4009-4056

Indexation, Investment and Utility Prices

Brealey R; Franks J

Oxford Review of Economic Policy 2009 Vol 25:3 p 435-450

2008

Do bankruptcy codes matter? A study of France, Germany and the UK

Davydenko S; Franks J

Journal of Finance 2008 Vol 63:2 p 565-608

Returns to shareholder activism evidence from a clinical study of the hermes UK focus fund

Becht M; Franks J; Mayer C; Rossi S

Review of Financial Studies 2008:22 p 3093-3129

2007

Private equity: boom and bust?

Acharya V; Franks J R; Servaes H

Journal of Applied Corporate Finance 2007 Fall Vol 19:4 p 1-10

2006

The origins of the German corporation: finance, ownership and control

Franks J R; Mayer C; Wagner H

Review of Finance 2006 Vol 10:4 p 537-585

2005

Financial distress and bank restructuring of small to medium size UK companies

Franks J R; Sussman O

Review of Finance 2005 Vol 9:1 p 65-96

Financial innovations and corporate insolvency

Franks J; Sussman O

Journal of Financial Intermediation 2005 July Vol 14:3 p 283-317

2004

Spending less time with the family: the decline of family ownership in the UK

Franks J R; Mayer C; Rossi

in Morck R ed., History of corporate ownership: the rise and fall of great business families, NBER, 2004

2003

Risks and regulation in European asset management

Franks J R; Mayer C; Correia da Silva L

Oxford University Press, 2003

2002

Managerial disciplining and the market for (partial) corporate control in the UK

Franks J R; Mayer C; Renneboog L

in McCahery J et al. ed., Corporate governance regimes: convergence and diversity, Oxford University Press, 2002

Asset management and investor protection

Franks J R; Mayer C; Correia da Silva L

Oxford University Press, 2002

Comparison of English and American bankruptcy procedures

Franks J R; Torous W

in McCahery J et al. ed., Corporate governance regimes: convergence and diversity, Oxford University Press, 2002

2001

Who disciplines management in poorly performing companies?

Franks J R; Mayer C; Renneboog L

Journal of Financial Intermediation 2001 Jul Vol 10:3/4 p 209-248

Regulation and asset management

Franks J R; Mayer C; Correia da Silva L

Financial Times 2001 Jul 16

Ownership and control of German corporations

Franks J R; Mayer C

Review of Financial Studies 2001 Winter Vol 14:4 p 943-977

Role of medium of exchange in mergers in the US and the UK

Franks J R; Harris R; Mayer C

in Cosh A and Hughes A eds., Takeovers. Vol. 2, Dartmouth Publishing, 2001

Shareholders wealth effects of corporate takeovers: the UK experience 1955-85

Franks J R; Harris R

in Cosh A and Hughes A eds.,Takeovers. Vol. 2, Dartmouth Publishing, 2001

1999

Direct and compliance cost of financial regulation

Franks J R; Schaefer S M; Staunton M

in Swann E J ed., Issues in derivative instrument law, Kluwer Law International, 1999

1998

Tale of three insolvency codes

Torous W N; Nyborg K G; Franks J R

in Bickerstaffe G ed., Mastering finance, p 411-418, Financial Times/Pitman, 1998

Ownership and control in Europe

Franks J R; Mayer C

in Newman P ed., New Palgrave dictionary of economics and the law. Vol. 2, Palgrave, 1998

Bank control, takeovers and corporate governance in Germany

Franks J R; Mayer C

Journal of Banking and Finance 1998 Oct Vol 22:10/11 p 1385-1403

Bank control, takeovers and corporate governance in Germany

Franks J R; Mayer C

in Hopt K et al. eds., Comparative corporate governance: the state of the art and emerging research, Oxford University Press, 1998

1997

Underpricing, ownership and control in initial public offerings of equity securities in the UK

Franks J R; Brennan M J

Journal of Financial Economics 1997 Sep Vol 45:3 p 391-413

Corporate ownership and control in Germany, the UK and France

Franks J R; Mayer C

Journal of Applied Corporate Finance 1997 Winter Vol 9:4 p 30-45

Corporate ownership and control in Germany, the UK and France

Franks J R; Mayer C

in Chew D H ed., Studies in international corporate finance and governance systems: a comparison of the US, Japan and Europe, Oxford University Press, 1997

Several ways to go broke

Franks J R

in Bickerstaffe G ed., Mastering management, Financial Times/Pitman, 1997

Direct and compliance costs of financial regulation

Franks J R; Schaefer S M; Staunton M

Journal of Banking and Finance 1997 Dec Vol 21:11/12 p 1547-1572

1996

Do hostile takeovers improve performance?

Franks J R; Mayer C

Business Strategy Review 1996 Winter Vol 7:4 p 1-6

Control rights, debt structure and the loss of private benefits: the case of the UK insolvency code

Franks J R; Nyborg K G

Review of Financial Studies 1996 Vol 9:4 p 1165-1210

Meaning of accounting numbers in target setting and performance measurement: implications for managers and regulators

Franks J R; Hodges S

in Peasnell K V and Brief R eds., Clean surplus: a link between accounting and finance, Garland Publishing, 1996

Workouts versus formal bankruptcy, incentives and inefficiencies under different codes

Franks J R; Nyborg K

Review of Financial Studies 1996 Autumn

Lessons from a comparison of US and UK insolvency codes

Franks J R; Torous W N

in Bhandari J S and Weiss L A eds., Corporate bankruptcy: economic and legal perspectives, Cambridge University Press, 1996

Some concerns with the regulatory system of the utilities

Brealey R A; Franks J R

Utility Finance 1996 May p 15-17

Comparison of US, UK and German insolvency codes

Franks J R; Nyborg K G; Torous W N

Financial Management 1996 Vol 25:1 p 19-30

Hostile takeovers and the correction of managerial failure

Franks J R; Mayer C

Journal of Financial Economics 1996 Vol 40:1 p 163-181

1995

Equity market transparency on the London Stock Exchange

Franks J R; Schaefer S M

Journal of Applied Corporate Finance 1995 Spring Vol 8:1 p 70-77

Costs of regulatory compliance for financial firms

Franks J R; Schaefer S M; Staunton M

Corporation of London, 1995

Ownership and control

Franks J R; Mayer C

in Siebert H and Mohr J C B eds., Trends in business organization: do participation and cooperation increase competitiveness?, Paull Siebeck, 1995

Some issues in sovereign debt and distressed reorganizations

Franks J R

in Eichengreen B and Portes R eds., Crisis?: what crisis?: orderly workouts for sovereign debtors, Centre for Economic Policy Research, 1995

1994

How firms fare in workouts

Franks J R; Torous W

2004

Custodianship and protection against misuse of client property

Franks J R; Schaefer S M

Corporation of London, 1994

Custodianship and investor protection

Franks J R; Schaefer S M

Financial Times 1994 Feb 24

Comparison of financial recontracting in distressed exchanges and Chapter 11 reorganizations

Franks J R; Torous W N

Journal of Financial Economics 1994 Jun Vol 35:3 p 349-370

1993

European capital markets and corporate control

Franks J R; Mayer C

in Bishop M and Kay J A eds., European mergers and merger policy, Oxford University Press, 1993

Comparison of the US and UK bankruptcy codes

Franks J R; Torous W N

Journal of Applied Corporate Finance 1993 Spring Vol 6:1 p 95-103

Shareholder wealth effects and UK take-overs: implications for merger policy

Franks J R; Harris R

in Bishop M and Kay J A eds., European mergers and merger policy, Oxford University Press, 1993

Costs and effectiveness of the UK financial regulatory system

Franks J R; Schaefer S M

Corporation of London, 1993

1992

Regulation of takeovers

Franks J R

in Beesley M E ed., Lectures on regulation 1991, London Business School Centre for Business Strategy, 1992

Role of the Mergers and Monopolies Commission in merger policy: costs and alternatives

Franks J R; Harris R

in Kay J A and Fairburn J eds., Mergers and merger policy. 2nd ed., Oxford University Press, 1992

Are stockholders better off when debt is restructured privately?

Betker B L; Franks J R; Torous W N

in Altman E ed., Corporate bankruptcy and distressed restructuring, p 391-400, Irwin, 1992

Empirical investigation of US firms in reorganization

Franks J R; Torous W N

in Altman E ed., Corporate bankruptcy and distressed restructuring, Irwin, 1992

Lessons from a comparison of US and UK insolvency codes

Franks J R; Torous W N

Oxford Review of Economic Policy 1992 Autumn Vol 8:3 p 70-82

1991

Stochastic behaviour of market variance implied in the prices of index options: leverage, volume and other effects

Franks J R; Schwartz E S

in Hodges S ed., Options 2: recent advances in theory and practice, Manchester University Press, 1991

Stochastic behaviour of market variance implied in the prices of index options: leverage, volume and other effects

Franks J R; Schwartz E S

Economic Journal 1991 Nov Vol 101:409 p 1460-1475

Postmerger share-price performance of acquiring firms

Franks J R; Harris R; Titman S

Journal of Financial Economics 1991 Mar Vol 29:1 p 81-96

Capital markets and corporate governance: a European comparison

Franks J R; Mayer C

in Fairburn J and Kay J A eds., Mergers and merger policy, Oxford University Press, 1991

Equity market transparency

Franks J R; Schaefer S M

Stock Exchange Quarterly 1991 Apr-Jun p 7-11

1990

Capital requirements and investor protection: an international perspective

Franks J R; Mayer C

National Westminster Bank Review 1990 Aug p 69-86

Capital markets and corporate control: a study of France, Germany and the UK

Franks J R; Mayer C

Economic Policy 1990 Apr Vol 5:1 p 189-231

1989

Risk, regulation and investor protection: the case of investment management

Franks J R; Mayer C

Oxford University Press, 1989

Performance of merging firms

Franks J R

Treasurer 1989 Jan

Empirical investigation of US firms in reorganization

Franks J R; Torous W N

Journal of Finance 1989 Jul Vol 44:3 p 747-769

Shareholder wealth effects of corporate takeovers: the UK experience 1955-1985

Franks J R; Harris R S

Journal of Financial Economics 1989 Aug Vol 23:2 p 225-249

Electives


  • E123 Elective Course in Mergers, MBOs and Other Corporate Reorganizations (Streams A & B)


Finance


  • MiF London Finance Experience trip

  • C111 Core MBA Course in Corporate Finance

Research Awards


  • Winner of the Best Working Paper Competition sponsored by the ECGI for the paper entitled ‘Ownership, Evolution and Regulation’, joint with Colin Mayer and Stefano Rossi.

  • Winner of the Clinical Paper Competition sponsored by the Journal of Financial Economics and the ECGI for the paper entitled ‘Ownership, Evolution and Regulation’, joint with Colin Mayer and Stefano Rossi.

  • Winner of Best Paper Prize (2006) awarded by the Journal of Financial Intermediation, for the paper entitled ‘Financial Innovations and Corporate Insolvency’, 2005, joint with Oren Sussman.

  • strong>Winner of Best Paper Prize (2001) awarded by the Journal of Financial Intermediation, for the paper entitled ‘Who disciplines management of poorly performing companies’, 2001, joint with Colin Mayer and Luc Renneboog.

  • Nominated for the Best Research Paper Prize in 2005 by the Review of Finance (top 3 nominations) for ‘Financial distress and bank restructuring of small to medium size UK companies’, joint with Oren Sussman.

  • Award for "Best Teacher", Senior Executive Programme, 1989.

Research Interests


  • Bankruptcy and financial distress
  • Corporate ownership and control and cost of capital and regulation