Prior literature finds that earnings management is negatively correlated with institutional ownership. The question is whether institutional investors drive down earnings management of the firms they invest in, or they choose firms with lower earnings management. In this paper, we use the...

We study the relation between the market reaction to analyst recommendation changes and the structure of analysts' research portfolios. We find that analysts maintain more positive recommendations for stocks that belong to the quot;core industryquot; in their research portfolios, and are more...

This paper investigates the change of the credit spread volatility from 1993 to 2001. We find that credit spreads between junk grade corporate bonds and Treasury bond are significantly more volatile in the second half of this period when credit related securities become popular. However credit...

This paper embeds security design in a model of evolutionary learning. We consider a competitive and perfect financial market where agents, as in Allen and Gale (1988), have heterogeneous valuations for cash flows. Our point of departure is that, instead of assuming that agents are endowed with...

We examine corporate security choice by simulating an economy populated by adaptive agents who learn about the structure of security returns and prices through experience. Through a process of evolutionary selection, each agent gravitates toward strategies that generate the highest payoffs....

We analyze a distressed firm indebted to many creditors. The firm's owners have the option of choosing the sequence of restructuring negotiations with the creditors. We show that sequencing flexibility is beneficial to firm owners, and that the optimal sequencing of restructuring negotiations...

Malmendier and Shanthikumar (2014) find that some analysts issue relatively higher stock recommendations and relatively lower earnings forecast of the same firm on the same day. They describe this behavior as speaking in two different tongues. In this paper, we explore the cost of this strategy...

In this paper, we study the performance of hated stocks, those stocks with the average analyst recommendation level of hold or worse. We show that from the beginning of 2009 to the end of 2014, this group of hated stocks in S&P 500 performs better than the other stocks in S&P 500. When we extend...

Nowadays most firms compete for multiple separate markets as opposed to a single market. Extant IO works mainly focus on these firms' cooperative behavior, assuming away their capacity constraints and studying the effect of potential multi-market retaliation upon these firms' collusive...

This paper explores stock market reactions to corporate social performance. We find that a value-weighted portfolio based on the list of “100 Best CSR companies in the world” published by Reputation Institute yields annual abnormal returns of 2.74% and 1.98%, by controlling for Carhart four...