In this research I empirically study the effects of information acquisition by investors or traders on analysts' forecast bias. Based on the theoretical literature on sell-side analysts, I argue that forecast bias is correlated to investors' information gathering, in two opposite directions. On...

Books on Graham and Dodd-based valuation tend to be predominantly introductory in nature, and essentially present different interpretations of value investing, broadly defined. This book takes a different approach; rather than introduce a new variation on the value investing theme, it adopts the...

Research suggests certain investors face significant information disadvantages, particularly during earnings announcements. We investigate whether financial analysis on Seeking Alpha, a prominent social media platform hosting original financial analysis, can mitigate this disadvantage. First, we...

The accepted approach to capital budgeting leaves decision makers without appropriate guidance because it ignores the cognitive, organizational, and institutional dimensions of their decision-making process. This approach is based upon the unrealistic assumptions of neoclassical finance, where...

Equity research analysts tend to cover firms about which they have favorable views. We exploit this tendency to infer analysts' preferences for corporate policies from their coverage decisions. We then use exogenous analyst disappearances to examine the effect of these preferences on corporate...

In this paper we examine the effect of financial analysts on the quality of corporate investment decisions. We show that greater analyst coverage leads to higher total factor productivity within firms, a finding that is robust after using both an instrumental variable approach and an...

Introduction -- Basic Concepts of Valuation -- The Ownership and Objectives of the Firm -- Financial Statements and Financial Ratios -- Opportunity Cost and Investment Criteria -- Internal Rate of Return, Profitability Index and Payback Period Methods -- Risk and Return -- Capital Structure in a...