Research on human biases stemming from the use of decision aids has predominantly dealt with human tendencies to reduce cognitive effort. In this research we examine a bias that results from the human tendency for exploratory behavior. We frame our analysis within a natural experiment setting...

We introduce a measure of corporate governance based on the degree of transparency and managerial opportunism in firms' guidance release policy. Firms with a good quality of guidance governance have better performance than firms with a poor quality of guidance governance and firms that do not...

Using combinations of weekdays and times of day (before, during, and after trading hours) of earnings announcements, we examine whether managers attempt to strategically time these announcements. We document that the worst earnings news is announced on Friday evening and find robust evidence...

We report reduced market response to Friday announcements of dividend changes, seasoned equity offerings, open-market share repurchases, earnings, and mergers, which is seemingly consistent with the notion of investor inattention on Fridays. However, we show that these findings are an outcome of...

We analyze whether citing practices in finance are driven by scientific merit or whether they are systematically biased due to strategic considerations. The discontinuation of the Journal of Business (JB) in 2006 for extraneous reasons serves as the exogenous shock for analyzing strategic citing...

The paper finds that CEOs time their trades in their own company's stock better than the average investor. While this could suggest that CEOs take advantage of their access to nonpublic information at the shareholders' expense, trade timing can be a desirable CEO characteristic for investors if...

Analysts' functions are divided into discovery and interpretation roles, but separating between the two is non-trivial. We conjecture that analysts' interpretation skill can be gauged by their forecast revisions following material unanticipated news — in particular following non-earnings 8-K...

We analyze whether editors of top-tier journals bias acceptance decisions due to cultural values that are unrelated to academic merits. Specifically, while editors raised in common law countries tend to base their acceptance decision solely on scientific merits, editors raised in civil law...

We analyze the effects of partisan Congressional control on the US economy. We find that economic performance is weaker when no party has the majority in both chambers of Congress (divided Congress). This weaker economic performance is attributed to reduced and less effective regulation. We...