We compare the ex-dividend day stock returns and trading volume of foreign stocks that trade in U.S. markets as American Depository Receipts (ADRs) with the ex-day returns and volume of a matched sample of U.S. stocks. This experiment allows us to investigate whether differences in the way...

We derive and interpret the main results of Modern Portfolio Theory and the Theory of Active Portfolio Management from the perspective that, for active investors, the cross-sectional dispersion of returns is more relevant as a measure of risk than time series volatility. We show that all key...

We hypothesize that the initiation of cash dividends indicates that a firm?s earnings and cash flows have become fundamentally less risky. We present evidence to support this hypothesis. A sample of firms initiating dividends displays a precipitous decrease in risk immediately following the...

Using a sample of dividend-paying firms, we show that much of the variation in accruals and real activities can be explained by firms' different performance trajectories. High (low) performance firms spend more (less) on SG&A and CAPEX and hold what appear to be abnormally low (high) levels of...

We revisit the conventional wisdom that high market P/E ratios forecast negative future stock returns. We identify a significant break in the stock return-P/E relationship at high levels of the market P/E. Starting from market P/E ratios of 21 or greater, 10-year real returns are in line with...

A "hands-on" guide to applied equity analysis and portfolio management. From asset allocation to modeling the intrinsic value of a stock, Applied Equity Analysis and Portfolio Management + Online Video Course offers readers a solid foundation in the practice of fundamental analysis using the...

Does an organization's commitment to diversity - as reflected by CEO commitment, human capital, corporate communications (internal and external), and supplier diversity - result in competitive advantage and superior financial performance? Diversity can bring new voices and perspectives into the...