Publications

The objective of this article is to discuss the advantages of effective educational monitoring in the context of a longitudinal RCT. Intentional data collection and monitoring enables the important assessment of issues of both internal and…

We use data from TransUnion, a large U.S. credit bureau covering millions of individual consumer loans, to examine the transition to the Current Expected Credit Loss (CECL) accounting standard and to provide novel evidence about the impact that…

Accounting theory suggests that equity book-to-market ratios (BTM) should not exceed one if a firm’s return on equity exceeds its cost of capital or if it employs conservative accounting. Yet, BTM is above one for many firms, particularly in…

This 10th annual State of Latino Entrepreneurship (SOLE) Report provides a comprehensive analysis of Latino/a-owned businesses (LOBs), exploring a decade of growth, challenges, and future opportunities. Drawing on the 2024 Stanford Latino…

We study debt and equity valuation when investors have private information and may exhibit differences of opinion. Our model generates several predictions that are consistent with empirical evidence but difficult to reconcile with traditional…

This paper addresses the enduring challenge of bridging the gap between accounting research and its application in practice. Drawing upon insights from the 2024 Financial Accounting and Reporting Section (FARS) plenary panel discussion and…

While the mechanism design paradigm emphasizes notions of efficiency based on agent preferences, policymakers often focus on alternative objectives. School districts emphasize educational achievement, and transplantation communities focus on…

We develop a model of financial crises with both a financial amplification mechanism, via frictional intermediation, and a role for sentiment, via time-varying beliefs about an illiquidity state. We confront the model with data on credit spreads…

Early empirical evidence showed a lack of relative performance evaluation (RPE) for executive pay, a surprise given its theoretical appeal. We hypothesize that executive pay transparency can enhance the monitoring of pay practices and increase…

We analyze the behavior of credit and output in financial crises using data on credit spreads and credit growth. Crises are marked by a sharp rise in credit spreads, signaling sudden shifts in expectations. The severity of a crisis can be…

I show that investor composition affects bond price dynamics and capital allocation during crises. Using large-scale holdings data and within-firm ownership variation across near-identical bonds, I causally identify bond returns’ investor…

We empirically characterize how China is internationalizing its bond market by staggering the entry of different types of foreign investors into its domestic market and propose a dynamic reputation model to explain this strategy. Our framework…

What if “old wine in new bottles” is actually the secret to game-­changing innovation? The authors explore what they call precedents thinking, illustrating how radical breakthroughs such as Henry Ford’s assembly line and Reed Hastings’s…

Motivated by the disconnect between regulatory discussions and industry reports on voluntary sustainability investments, we examine the market equilibrium for sustainable products in the absence of regulation, focusing on firms’ strategic…

We examine if the effectiveness of business tax subsidies varies based on state disclosure laws. The prior accounting literature on government disclosure documents substantial variation in the quality of such disclosures, raising questions about…

Artificial intelligence has the potential to significantly transform boardroom practices — but perhaps in different ways than is commonly recognized. Four areas in particular are poised for impact, including how boards function, how boards…

For globally systemically important banks (GSIBs) with US headquarters, we find significant reductions in market-implied probabilities of government bailout after the Global Financial Crisis (GFC), along with roughly 170% higher wholesale debt…

Research on culture and personality has greatly enhanced personality science by bringing attention to the bidirectional processes by which socio-cultural factors shape personality and individuals in turn shape their social environments to fit and…

Ambition, an individual trait that we show to be empirically distinct from the Big Five dimensions of personality, has been under theorized and researched as an important determinant of both career success and unethical behavior. We…

As political issues have increased in complexity, public opinion researchers increasingly ask respondents about sophisticated political topics that may require substantive knowledge and analytic skills, raising concerns about survey satisficing.…