Bruce’s research interests are broad. His publications investigate, inter alia, the informativeness of corporate disclosures, the effect of data breaches on breached firms and their competitors, the design of convertible securities, momentum trading strategies, option pricing, real options analysis, sovereign bonds as benchmarks for corporate bond issuance, corporate governance, and charitable fund raising.
Bruce is a Professor of Finance in the ANU Research School of Finance, Actuarial Studies and Statistics, a Fellow of the Academy of the Social Sciences in Australia, a Senior Fellow of the Asian Bureau of Finance & Economic Research and a Founding Member of the Finance Research Network FIRN. Bruce has published in the leading Finance journals including the Journal of Finance, Review of Financial Studies, Journal of Financial Economics, Management Science and Review of Finance. He has served as a past Managing Editor of the International Review of Finance and Associate Editor of the Journal of Finance, Review of Financial Studies, Journal of Financial Research, Journal of Financial and Quantitative Analysis, and Accounting and Finance. Professor Grundy has won research and teaching awards including a Geewax-Terker Prize, Batterymarch Fellowship, and Hauck Award. Bruce has consulted for investment banks, corporations, mutual funds, and regulators in Australasia, Europe, and the US.
"The effect of investor sentiment and the structure of shareholder ownership on corporate investment," 2022, International Journal of Managerial Finance forthcoming. Co-author: Michael Li.
“The external financing of investment,” 2020, Journal of Corporate Finance, 65, 101745. Co-author: Patrick Verwijmeren.
“Why do option prices predict stock returns? The role of price pressure in the stock market,” 2020, Management Science 66(9), 3903–3926. Co-authors: Luis Goncalves-Pinto, Allaudeen Hameed, Thijs van der Heijden and Yichao Zhu.
“Can socially responsible firms survive competition? An analysis of corporate employee matching grants,” 2019, Review of Finance 23(1), 199-243. Co-author: Ning Gong.
“The buyers’ perspective on security design: Hedge funds and convertible bond call provisions,” 2018, Journal of Financial Economics 127(1), 77-93. Co-author: Patrick Verwijmeren.
“Disappearing call delay and dividend-protected convertible bonds,” 2016, Journal of Finance 71(1), 195-224. Co-author: Patrick Verwijmeren.
“Why are conversion-forcing call announcements associated with negative wealth effects?” 2014, Journal of Corporate Finance 24, 149-157. Co-authors: Chris Veld, Patrick Verwijmeren, Yuriy Zabolotnyuk.
“The design of charitable fund-raising schemes: Matching grants or seed money,” 2014, Journal of Economic Behavior and Organization 108, 147-165. Co-author: Ning Gong.
“Stock returns and the Miller-Modigliani valuation formula: Revisiting the Fama-French analysis,” 2013, Journal of Financial Economics 110(2), 347-357. Co-authors: Gil Aharoni and Qi Zeng.
“Convertibles and hedge funds as distributors of equity exposure,” 2012, Review of Financial Studies 25(10), 3077-3112. Co-authors: Stephen Brown, Craig Lewis and Patrick Verwijmeren.
“Do option markets undo restrictions on short sales? Evidence from the 2008 short-sale ban,” 2012, Journal of Financial Economics 106(2), pp. 331-348. Co-authors: Bryan Lim and Patrick Verwijmeren.
“Investor sentiment, executive compensation, and corporate investment,” 2010, Journal of Banking & Finance 34, pp. 2439-2449. Co-author: Michael Li.
“Disclosure, hidden charges and indexed pensions,” 2005, Agenda: A Journal of Policy Analysis and Reform,12(1), pp. 33-46. Co-authors: Diana Beal and Sarath Delpachitra.
“Stock market volatility in a heterogeneous information economy,” 2002, Journal of Financial and Quantitative Analysis 37(1), pp. 1-27. Co-author: Youngsoo Kim.
“Momentum: Fact or factor? Momentum investing when returns have a factor structure,” 2001, Review of Financial Studies 14(1), pp. 29-78. Co-author: Spencer Martin.
“Merton H. Miller: His contribution to financial economics,” 2001, Journal of Finance 56(4), pp. 1183-1206.
“General properties of option prices,” 1996, Journal of Finance 51(5), pp. 1573-1610. Co-authors: Yaacov Bergman and Zvi Wiener.
“Option prices and the underlying asset’s return distribution,” 1991, Journal of Finance 46(3), pp. 1045-1070.
“Changing risk, changing risk premiums, and dividend yield effects,” 1990, Journal of Business 63(1), pp. 51-70. Co-authors: Nai-fu Chen and Robert F. Stambaugh.
“Optimal investment with stock repurchase and financing as signals,” 1989, Review of Financial Studies 2(4), pp. 445-465. Co-author: George Constantinides.
“Trade and the revelation of information through prices and direct disclosure,” 1989, Review of Financial Studies 2(4), pp. 495-526. Co-author: Maureen McNichols.
Selected Works of Merton Miller: A Celebration of Markets. Vol I Finance, 2002 (University of Chicago Press, Chicago, Ill.)
Selected Works of Merton Miller: A Celebration of Markets. Vol II Economics, 2002 (University of Chicago Press, Chicago, Ill).
“Merton H. Miller (1912-2006),” 2022, The Palgrave Companion to Chicago Economics. Edited by Robert A Cord (Springer International, New York, NY.)
“Hedge fund involvement in convertible securities,” 2013, Journal of Applied Corporate Finance 25(4), 60-73. Co-authors: Stephen J. Brown, Craig M. Lewis and Patrick Verwijmeren
“Stock return predictability in rational markets,” 2007, Insights: Melbourne Economics & Commerce 1(April).
“Real options analysis and investment appraisal: the opportunities and challenges,” 2006, Insights: Melbourne Economics & Commerce 4 (November).
“Book Review: Pricing and hedging of derivative securities by Lars Tyge Nielsen,” 2000, Journal of Financial Research 23, pp. 391-394.
“Complementarity of sovereign and corporate debt issuance: Mind the gap,” Co-authors: Sjoerd van Bekkum and Patrick Verwijmeren.
“The effect of data breaches on the values of breached firms and their competitors,” Co-authors: Mark Cummins, Ronan Powell and Pierangelo Rosati.
“Understanding risk disclosures and exposures: Insights from a novel measure of information content,” Co-author: Stefan Petry.
“Opacity, signaling, and bail-ins,” Co-authors Kentaro Asai and Ryuichiro Izumi.
“Intermediary frictions and asset pricing,” Co-authors Patrick Verwijmeren and Antti Yang