This paper aims to differentiate between optimistic splits and overoptimistic/opportunistic splits. Although markets do not distinguish between these two groups at the split announcement time, optimistic (over-optimistic/opportunistic) splits precede positive (negative) long-term buy-and-hold...

Billions of dollars, across 131 countries, are invested in Islamic law-compliant funds that are often promoted as consistent with the spirit and overall objectives of Islam (Maqasid Al-Sharia), thereby indicating they are more socially responsible, less risky, and less prone to failure. The...

This paper contributes to the emerging literature on the effect of religion on corporate decision making and financial reporting. We argue that financial statement analytical tools could violate several commands of the Islamic law. Specifically, traditional liquidity ratios imply undervaluation,...

As currently practiced, earnout agreements in mergers and acquisitions lead to significant agency problems and also violate Islamic law. First, using regression and difference-in-difference techniques, we show that target managers significantly increase earnings by cutting discretionary expenses...

This paper investigates market reaction to, and insiders’ trading around, CEO succession events. Investors seem to react negatively to CEO resignation, but not to CEO retirement or death. Further, while investors do not react negatively to CEO turnover in high effective firms, their reaction...

Republican CEOs are more likely to issue earnings forecasts and to issue forecasts that are more accurate and timely. Republican CEOs favor range and less optimistic forecasts, convey more negative news, and have more positive earnings surprises. We address endogeneity using propensity score...

This book addresses eight issues on behavioral finance and Chinese stock market: the theory of economic agent's self value, Chinese stock market's rapid development and linebreak peculiarities, the momentum and contrarian strategies in Chinese stock market, the highly volatile beta in China's...

We examine the relation between CEOs political ideology and their firms' investment decisions, particularly their M&A decisions. Employing individual financial contributions data for the period from 1993 to 2006, we find that firm's investment decisions vary with CEO's political ideology. Our...

TThe 2015 bankruptcy of Doral Financial Corporation, once “the best” U.S. bank according to U.S. Banker, is the largest since April 2010. The bankruptcy concludes years of management manipulation and efforts to recover. SEC investigation revealed fraud related to Doral's valuation of...