The Value of Finance Journals

Discover how Elsevier Ecosystem and citations impact journal value in the finance sector

Paper reviewed:

Cumming, Douglas J., The Value of Finance Journals (May 31, 2025). FEB-RN Research Paper No. 112/2025, Available at SSRN: https://ssrn.com/abstract=5284643 or http://dx.doi.org/10.2139/ssrn.5284643

Summary

This research paper reveals the factors influencing the value of finance journals, including the impact of the Elsevier Ecosystem, citations, and author demographics. Key findings show a significant increase in journal value due to the Elsevier Ecosystem and a positive correlation between citations and journal value.

Key Findings

• The creation of the Elsevier Ecosystem significantly increased the value of its journals. In the most conservative estimate, the value increased by 38.2%, or $0.55 million per journal.
• Quality, as measured by citations, positively affects journal value. A 1-standard-deviation increase in 2-year citations per document improves value by 46.7%.
• A higher percentage of female authors positively impacts journal value. A 1-standard-deviation increase in female authors (6.5%) increases value by 8.9%.
• Citations from policy documents enhance journal value. A 1-standard-deviation increase in such citations leads to a 49.4% increase in value.
• The proportion of uncited documents negatively affects journal value. A 1-standard-deviation increase (20%) lowers value by 8.0%.

Implications

Business and Policy Implications

• Publishers can enhance journal value by fostering networks among journals, as seen with the Elsevier Ecosystem.
• Journals should focus on improving citation metrics, as quality is a significant driver of value.
• Increasing diversity, particularly gender diversity, can positively impact journal value.
• Journals with higher citations in policy documents are more valuable, suggesting a strategic focus on research relevant to policymakers.
• Reducing the proportion of uncited documents is crucial for maintaining or increasing journal value.

Introduction

The valuation of academic journals is a topic of growing interest, particularly in the context of finance journals. The top finance journals, traditionally considered to be the Journal of Finance, the Journal of Financial Economics, and the Review of Financial Studies, have seen a shift in their valuation rankings over time. The most valuable finance journal in 2024 was Finance Research Letters, valued at $16.5 million, significantly higher than the traditionally top-ranked journals. This paper explores the factors driving the value of finance journals, examining the roles of quality, networks, and diversity.

Background and Context

The finance academic publishing industry has seen significant changes, with various publishers like Wiley, Oxford, and Elsevier playing crucial roles. Elsevier's creation of a formal network of finance journals, known as the Elsevier Ecosystem, in 2020 is a notable development. This ecosystem was designed to enhance the quality and impact of the journals within it. The context provides a unique setting to assess the determinants of journal value, given the homogeneity of the product and the availability of detailed data.

The measure of quality used in this study is citations, with several different citation metrics employed. The creation of the Elsevier Ecosystem serves as a natural experiment to examine the impact of networks on journal value. Diversity is measured through author diversity, focusing on gender and international collaboration.

Data from SCImago, covering 1999 to 2024, is used to examine 26 finance journals, including 10 Ecosystem journals and 16 non-Ecosystem journals. The data indicate that Ecosystem journals experienced a significant increase in value and documents published post-2019 compared to non-Ecosystem journals.

The regressions analyzing the determinants of journal value show that the Elsevier Ecosystem significantly increased the value of its journals. Quality, as proxied by citations, is a significant positive determinant of journal value. The proportion of female authors also positively impacts value, while the proportion of uncited documents has a negative effect.

The study's findings have implications for publishers, journal editors, and policymakers. By understanding the drivers of journal value, stakeholders can make informed decisions to enhance the value and impact of academic journals.

The remainder of this part has set the stage for understanding the complex factors influencing journal valuation. As we proceed to Part 2, we will delve deeper into the implications of these findings and explore additional insights from the data.

Main Results

The study examines the factors influencing the value of finance journals, using data from SCImago covering 1999-2024. The main findings are presented in several subsections, highlighting the key determinants of journal value.

Journal Value Determinants

The regressions for the determination of journal value are presented in Table 4. The results indicate that the creation of the Elsevier Ecosystem significantly increased the value of its journals. The difference-in-differences regressions show that the Ecosystem increased the average Ecosystem journal value by $1.49 million (Model 1), and this effect remains significant even after controlling for other variables.

Quality and Citations

The data show that quality, as proxied by citations, is a significant positive determinant of journal value. A 1-standard-deviation increase in 2-year cites/doc (2.0 citations/doc) improves value by 46.7% relative to the average journal value. Similarly, a 1-standard-deviation increase in the proportion of uncited documents (20%) lowers value by 8.0%.

Network Effects

The Elsevier Ecosystem has a significant positive impact on journal value. The most conservative estimate (Model 2) indicates that the Ecosystem increased the value of Ecosystem journals by 38.2% compared to their average value. A subset of Ecosystem journals with stronger ties (QE journals) shows a more pronounced impact, with an additional $0.76 million increase in value.

Diversity and International Collaboration

The proportion of female authors positively impacts journal value. A 1-standard-deviation increase in female authors (6.5%) increases value by 8.9% relative to the average journal value. However, international collaboration does not have a significant impact on journal value.

Methodology Insights

The study uses a difference-in-differences regression design to examine the impact of the Elsevier Ecosystem on journal value. This approach is innovative because it leverages a natural experiment (the creation of the Ecosystem) to identify the causal effect of networks on journal value. The use of panel data and journal fixed effects helps to control for unobserved heterogeneity and provides a robust estimate of the Ecosystem's impact.

The study's methodology is important because it provides a clear and credible identification strategy for estimating the impact of networks on journal value. By using a natural experiment, the study avoids the endogeneity concerns that often plague studies of network effects.

Analysis and Interpretation

The findings have several implications for industry practitioners and business professionals. The significant positive impact of the Elsevier Ecosystem on journal value suggests that formalized networks can create economic value. The importance of quality, as proxied by citations, highlights the need for journals to maintain high standards.

The positive impact of female authors on journal value is an interesting finding, as it suggests that diversity can have a positive effect on a journal's economic value. However, the lack of a significant impact from international collaboration may indicate that coordination costs across borders can constrain author output.

The study's results have strategic implications for companies and managers in the academic publishing industry. By understanding the drivers of journal value, stakeholders can make informed decisions to enhance the value and impact of academic journals. For example, journals can focus on improving their citation metrics, increasing diversity among authors, and leveraging formalized networks to boost their value.

Practical Business Insights

The study's findings have several practical implications for business leaders:

• Journals should prioritize quality, as proxied by citations, to maintain and increase their value.
• Formalized networks, such as the Elsevier Ecosystem, can create economic value for journals.
• Diversity among authors, particularly female authors, can have a positive impact on journal value.
• Journals should consider the potential benefits and costs of international collaboration.

Competitive Advantages and Market Opportunities

The study's results suggest that journals can gain a competitive advantage by:

• Investing in quality control and citation metrics.
• Participating in formalized networks, such as the Elsevier Ecosystem.
• Promoting diversity among authors.

By understanding the drivers of journal value, business leaders can identify market opportunities and make informed decisions to enhance the value and impact of academic journals.

Actionable Recommendations

Based on the study's findings, business leaders can take the following actions:

• Prioritize quality control and citation metrics.
• Explore opportunities for formalized networks and collaborations.
• Promote diversity among authors, particularly female authors.

By implementing these strategies, journals can increase their value and impact, ultimately benefiting the academic publishing industry as a whole. As we proceed to Part 3, we will explore the broader implications of these findings and discuss potential avenues for future research.

Practical Implications

The study's findings have significant implications for business leaders, managers, and stakeholders in the academic publishing industry. The data-driven insights provide a comprehensive understanding of the drivers of journal value, enabling informed decision-making and strategic planning.

Real-World Applications

The research highlights the importance of quality, networks, and diversity in determining journal value. For instance, the creation of the Elsevier Ecosystem journals led to a significant increase in value for the participating journals. This finding suggests that formalized networks and collaborations can be a valuable strategy for journals seeking to enhance their impact and value.

• Journals can benefit from prioritizing quality control and citation metrics, as these factors are strongly correlated with journal value.
• The study's results indicate that promoting diversity among authors, particularly female authors, can lead to increased value and impact.
• Business leaders can explore opportunities for formalized networks and collaborations, such as the Elsevier Ecosystem, to enhance the value and reputation of their journals.

Strategic Implications

The findings have important strategic implications for business leaders and managers in the academic publishing industry. By understanding the drivers of journal value, they can make informed decisions to enhance the value and impact of their journals.

• Journals should prioritize quality control and citation metrics to improve their value and reputation.
• Business leaders can promote diversity among authors by implementing policies and initiatives that support underrepresented groups.
• The creation of formalized networks and collaborations can be a valuable strategy for journals seeking to enhance their impact and value.

Who Should Care About These Findings?

The study's findings are relevant to a range of stakeholders, including:

• Business leaders and managers in the academic publishing industry
• Journal editors and publishers
• Authors and researchers
• Academic institutions and libraries
• Funding agencies and policymakers

These stakeholders can benefit from understanding the drivers of journal value and the strategies that can enhance the impact and value of academic journals.

Actionable Recommendations

Based on the study's findings, business leaders and managers can take the following actions:

1. Prioritize quality control and citation metrics: Implement policies and initiatives that promote high-quality research and improve citation metrics.
2. Explore opportunities for formalized networks and collaborations: Consider creating formalized networks and collaborations, such as the Elsevier Ecosystem, to enhance the value and reputation of journals.
3. Promote diversity among authors: Implement policies and initiatives that support underrepresented groups, particularly female authors, to promote diversity and inclusion.

Implementation Considerations

When implementing these strategies, business leaders and managers should consider the following factors:

• The specific needs and goals of their journal or organization
• The potential impact on authors, readers, and other stakeholders
• The resources and infrastructure required to support the implementation of these strategies

By carefully considering these factors, business leaders and managers can effectively implement the strategies outlined above and enhance the value and impact of their journals.

Conclusion

The study provides valuable insights into the drivers of journal value and the strategies that can enhance the impact and value of academic journals. By prioritizing quality control and citation metrics, exploring opportunities for formalized networks and collaborations, and promoting diversity among authors, business leaders and managers can make informed decisions to drive success in the academic publishing industry.

Summarize the Main Takeaways

The study's key findings include:

• The importance of quality, networks, and diversity in determining journal value
• The impact of the Elsevier Ecosystem on journal value
• The need to prioritize quality control and citation metrics
• The benefits of promoting diversity among authors
• The potential value of formalized networks and collaborations

Final Thoughts on Significance and Impact

The study's findings have significant implications for business leaders, managers, and stakeholders in the academic publishing industry. By understanding the drivers of journal value and implementing strategies to enhance the impact and value of academic journals, stakeholders can drive success and achieve their goals. The research highlights the importance of a nuanced understanding of the complex factors that influence journal value and the need for ongoing research and analysis to inform decision-making in the academic publishing industry.