Julian Franks

Professor of Finance; Alexander M. Knaster Chair;Fellow of the British Academy

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

Julian Franks is Professor of Finance at London Business School, and former Academic Director of London Business School’s Centre for Corporate Governance. An expert in corporate finance, his research focuses on bankruptcy and financial distress, corporate ownership and control, shareholder activism by both hedge funds and active asset managers, cost of capital and regulation. His work on ownership and control (with Colin Mayer and Stefano Rossi) has won two international prizes. Two of his other papers have won best paper awards by the Journal of Financial Intermediation. He has been an editor of the Journal of Law, Finance and Accounting, and an associate editor of various other finance journals. He has served as a member of the DTI–Treasury committee reviewing the UK’s insolvency code, as a member of the Company Law Review’s committees on corporate governance, and as a member of the Breedon committee on non-bank sources of finance. He has also been Visiting Professor at the University of California at both Berkeley and Los Angeles, and at the University of North Carolina at Chapel Hill.

Julian is currently an advisor to the Competition Market Authority. He has been an adviser to the Water Industry Commission for Scotland, a past member of the advisory board of ORR (the regulator for Network Rail), and was a member of an appeals panel for the New Zealand Commerce Commission. He has advised (with Professor Brealey) the Office of Constitutional Affairs on the issue of outside equity for law firms, and provided advice to a Treasury committee chaired by Paul Myners on a review of the governance of mutuals. He was an adviser to Ofcom for more than 15 years, and acted as an expert for them in three appeals to the Competition Authority. Julian is a partner at the consulting firm OXERA.

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.

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

2022

Do market prices improve the accuracy of court valuations in Chapter 11?

Demiroglu C; Franks J; Lewis R

Journal of Finance 2022 Vol 77:2 p 1179-1218

2021

Marketplace lending, information aggregation, and liquidity

Franks J R; Serrano-Velarde N; Sussman O

Review of Financial Studies 2021 Vol 34:5 p 2318-2361

2020

Institutional ownership and governance

Franks J

Oxford Review of Economic Policy 2020 Vol 36:2 p 258-274

2019

The early returns to international hedge-fund activism: 2000-2010

Becht M; Franks J; Grant J; Wagner H

Journal of Applied Corporate Finance 2019 Winter Vol 31:1 p 62-80

2017

Evolution of ownership and control around the world: the changing face of capitalism

Franks J; Mayer C

in Hermalin B & Weisbach, M (eds) The handbook of the economics of corporate governance, Elsevier, 2017

Returns to hedge fund activism: an international study

Becht M; Franks J; Grant J; Wagner H

Review of Financial Studies 2017 Vol 30:9 p 2933-2971

2015

Survival of the weakest: flourishing family firms in Germany

Franks J; Mayer C; Wagner H

Journal of Applied Corporate Finance 2015 Vol 27:4 p 27-35

2014

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

Franks J; Loranth G

The Review of Finance 2014 Vol 18:3 p 961-997

Hedge fund activism in Europe: does privacy matter?

Becht M; Franks J; Grant J

In Hill J, Thomas R & Elgar E (eds)., The Research Handbook in Shareholder Power, Edward Elgar Publishing, 2015. p. 116-128

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

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

Indexation, investment and utility prices

Brealey R; Franks J

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

Ownership: Evolution and regulation

Franks J; Mayer C; Rossi S

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

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 Vol 22:8 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

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

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

2001

Means of payment in takeovers: results for the United Kingdom and the United States

Franks J; Mayer C

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

Ownership and control of German corporations

Franks J R; Mayer C

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

Regulation and asset management

Franks J R; Mayer C; Correia da Silva L

Financial Times 2001 Jul 16

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

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

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

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

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

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

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

1997

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

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

Several ways to go broke

Franks J R

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

1996

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

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

Do hostile takeovers improve performance?

Franks J R; Mayer C

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

Hostile takeovers and the correction of managerial failure

Franks J R; Mayer C

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

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

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

Some concerns with the regulatory system of the utilities

Brealey R A; Franks J R

Utility Finance 1996 May p 15-17

Workouts versus formal bankruptcy, incentives and inefficiencies under different codes

Franks J R; Nyborg K

Review of Financial Studies 1996 Autumn

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

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

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

Custodianship and investor protection

Franks J R; Schaefer S M

Financial Times 1994 Feb 24

How firms fare in workouts

Franks J R; Torous W

2004

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

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

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

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

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

1991

1990

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

Capital requirements and investor protection: an international perspective

Franks J R; Mayer C

National Westminster Bank Review 1990 Aug p 69-86

1989

1988

1987

Lease valuation when taxable earnings are a scarce resource

Franks J; Hodges S D

Journal of Finance 1987 Vol 42:4 p 987-1005

Treasury performance measurement

Cooper I A; Franks J

Midland Corporate Finance Journal 1987 Vol 4:4

1986

Acquisitions and mergers

Franks J

in Broyles J E, Cooper I, Archer S eds., Financial management handbook, Gower Press, 1986

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

Franks J; Harris R S

Oxford Review of Economic Policy 1986 Vol 2:4 p 58-78

1983

Interaction of financing and investment decisions when the firm has unused tax credits

Cooper I A; Franks J

Journal of Finance 1983 Vol 38:2 p 571-583

1982

Debt financing, corporate financial intermediaries and firm valuation

Franks J; Pringle J J

Journal of Finance 1982 Vol 37:3 p 751-761

Leasing and capital investment

Franks J; Hodges S D; Tolley C J

Rental Hire 1982 October

1979

Role of leasing in capital investment

Franks J; Hodges S D

National Westminister Bank Quarterly Review 1979 August p 20-31

1978

Insider information and the efficiency of the acquisitions market

Franks J

Journal of Banking and Finance 1978 Vol 2:4 p 379-393

Valuation of financial lease contracts: a note

Franks J; Hodges S D

Journal of Finance 1978 Vol 33:2 p 657-669

1977

An industry study of the profitability of mergers in the United Kingdom

Franks J; Broyles J E; Hecht M J

Journal of Finance 1977 Vol 32:5 p 1513-1525

1976

Capital project appraisal: a modern approach

Franks J; Broyles J E

Management Decision 1976 Vol 14:3 p 117-128

Inflation and the investment decision

Franks J; Broyles J E

in West C ed., Inflation: a management guide to company survival, Associated Business Programmes, 1976

1974

A decision analysis approach to cash flow management

Franks J; Bunton C; Broyles J E

Operational Research Quarterly 1974 Vol 25:4 p 573-858

A review of acquisition valuation models

Franks J; Miles R; Bagwell J

Journal of Business Finance and Accounting 1974 Vol 1:1 p 35-53

1972

Investment incentives and regional policies

Franks J; Scholefield H H

National Westminister Bank Quarterly Review 1972 February

2022

Decomposing fire sale discounts

Franks J R; Seth G; Sussman O; Vig V

European Corporate Governance Institute - Finance Working Paper

2021

Quality and productivity in aircraft sales: why the welfare costs of fire sales are overstated

Franks J; Seth G; Sussman O; Vig V

Working Paper

The Limits of Coase: A Study of Financial Distress in the Shipping Industry

Franks J; Seth G; Sussman O; Vig V

Working Paper

2020

The privatization of bankruptcy: evidence from financial distress in the shipping industry

Franks J; Sussman O; Vig V

IFA Working Paper

2019

Corporate governance through voice and exit

Becht M; Franks J; Wagner H

European Corporate Governance Institute - Finance Working Paper

2016

Do market prices improve the accuracy of court valuations in Chapter 11?

Demiroglu C; Franks J; Lewis R

Social Sciences Research Network

2015

The returns to hedge fund activism: an international study

Becht M; Franks J; Grant J; Wagner H

Social Sciences Research Network

2012

Have a quiet word: the returns from public and private shareholder activism

Becht M; Franks J; Grant J

IFA Working Paper

2003

Risks and regulation in European asset management

Franks J R; Mayer C; Correia da Silva L

Oxford University Press, 2003

2002

Asset management and investor protection

Franks J R; Mayer C; Correia da Silva L

Oxford University Press, 2002

1995

Costs of regulatory compliance for financial firms

Franks J R; Schaefer S M; Staunton M

Corporation of London, 1995

1994

Custodianship and protection against misuse of client property

Franks J R; Schaefer S M

Corporation of London, 1994

1993

Costs and effectiveness of the UK financial regulatory system

Franks J R; Schaefer S M

Corporation of London, 1993

1989

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

Franks J R; Mayer C

Oxford University Press, 1989

Teaching portfolio

Our teaching offering is updated annually. Faculty and programme material are subject to change.

Masters Degrees electives

Optional courses providing a deep dive into specialist areas.
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Mergers, MBOs & Other Corp. Reorgs

Examine corporate re-organisations, including mergers and acquisitions, re-organisation through workouts and bankruptcy, divisional spin-offs and divestitures, and leveraged buyouts
PROGRAMMES WITH THIS ELECTIVE

Executive MBA Dubai

Executive MBA London

EMBA-Global

MBA

Masters in Finance Full-time

Masters in Finance Part-time

Masters in Management

LBS Sloan Masters in Leadership and Strategy
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Julian Franks

Research Awards

Teaching portfolio

Masters Degrees electives

PROGRAMMES WITH THIS ELECTIVE