Theory suggests that relatively inefficient firms should have lower and more uncertain future cash flows, which should lead to lower current equity values and higher future equity returns. However, the literature provides contradictory evidence on the relationship between operational efficiency...

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 caused by reduced and less effective regulation during...

This paper extends the variance decomposition framework of Campbell (1991), Campbell and Ammer (1993) and Vuolteenhao (2002) to address the relative value relevance of accruals news, cash flow news and expected return news in driving firm-level equity returns. The extension is based on the...

This study investigates the price discovery process in equity markets with informed institutional investors. Consistent with extant theories, we show empirically that institutional investors, in contrast to retail investors, trade based on the leaked sign of unanticipated news and then...

This study investigates whether there are economic benefits for investors in analyzing differences in analyst quality. Although high-quality analysts’ average forecast is more accurate than the consensus forecast in firms with a large analyst following, the benefits of using high-quality...

One of the critical factors that impacts outsourcing decisions in supply chains is the bullwhip effect (BE). This effect refers to the ubiquitous phenomenon whereby firm-level production is more volatile than its demand. The literature assumes that the BE increases costs and reduces...

This paper reports estimates of overall and product specific economies of scale, as well as, economies of scope for the main outputs of the life insurance industry. In addition, the paper presents a number of structural tests of the production technology. The results indicate that the estimated...