These papers are working drafts of research which often appear in final form in academic journals. The published versions may differ from the working versions provided here.
SSRN Research Paper Series
The Social Science Research Network’s Research Paper Series includes working papers produced by Stanford GSB the Rock Center.
You may search for authors and topics and download copies of the work there.
A Re-examination of the Informational Role of Earnings Announcements
No abstract available
Relating Product Prices to Long-Run Marginal Cost: Evidence from Solar Photovoltaic Modules
A basic tenet of microeconomics is that for a competitive industry in equilibrium the market price of a product will be equal to its marginal cost. This paper develops a model framework and a corresponding empirical inference procedure for…
The Economic Consequences Associated with Integrated Report Quality: Capital Market and Real Effects
The International Integrated Reporting Council’s Framework identifies two goals for integrated reporting: improved information for outside providers of financial capital and better internal decision making. We extend prior research that finds a…
The Jilting Effect: Antecedents, Mechanisms, and Consequences for Preference
This research explores how the experience of a jilt — the anticipation and subsequent inaccessibility of a highly desirable, aspirant option — influences preference for incumbent and non-incumbent options. We conceptualize jilting as a multi-…
From Boardroom to C-Suite: Why Would a Company Pick a Current Director as CEO?
Many observers consider the most important responsibility of the board of directors its responsibility to hire and fire the CEO. To this end, an interesting situation arises when a CEO resigns and the board chooses neither an internal nor…
Mortgage Design in an Equilibrium Model of the Housing Market
How can mortgages be redesigned to reduce housing market volatility, consumption volatility, and default? How does mortgage design interact with monetary policy? We answer these questions using a quantitative equilibrium life cycle model with…
Evolution in Value Relevance of Accounting Information
We find the value relevance of accounting information has increased between 1962 and 2014. The information we consider comprises twelve accounting amounts plus ten industry indicators. Regarding individual accounting amounts, we find that…
Alignment at Work: Using Language to Distinguish the Internalization and Self-Regulation Components of Cultural Fit in Organizations
Cultural fit is widely believed to affect the success of individuals and the groups to which they belong. Yet it remains an elusive, poorly measured construct. Recent research draws on computational linguistics to measure cultural fit but…
Asymmetric Timeliness and the Resolution of Investor Disagreement and Uncertainty at Earnings Announcements
This study finds that greater asymmetric timeliness of earnings is associated with slower resolution of investor disagreement and uncertainty at earnings announcements. These findings indicate that a potential cost of asymmetric timeliness is…
Fintech, Regulatory Arbitrage, and the Rise of Shadow Banks
We study the rise of fintech and non-fintech shadow banks in the residential lending market. The market share of shadow banks in the mortgage market has nearly tripled from 2007-2015. Shadow banks gained a larger market share among less…
Firm Selection and Corporate Cash Holdings
Among stock market entrants, more firms over time are R&D–intensive with initially lower profitability but higher growth potential. This sample-selection effect determines the secular trend in U.S. public firms’ cash holdings. A stylized firm…
Multilateral Trade Bargaining: A First Peek at the GATT Bargaining Records
This paper empirically examines recently declassified data from the GATT/WTO on tariff bargaining. Focusing on the Torquay Round (1950-51), we document six stylized facts about these interconnected high-stakes international negotiations.…
When Harry Fired Sally: The Double Standard in Punishing Misconduct
We examine gender discrimination in the financial advisory industry. We study a less salient mechanism for discrimination, firm discipline following missteps. There are substantial differences in the punishment of misconduct across genders.…
Mutual Funds and Short-Sellers: Why does short-sale volume predict stock returns?
Daily directional trading by mutual funds (MFs) is highly-persistent and price-destabilizing, leading to return reversals lasting months. This effect is distinct from the “flow-induced trading” phenomenon in prior studies. At the same…
Big Data and Marketing Analytics in Gaming: Combining Empirical Models and Field Experimentation
Efforts on developing, implementing and evaluating a marketing analytics framework at a real-world company are described. The framework uses individual-level transaction data to fit empirical models of consumer response to marketing efforts, and…
Unification versus Separation of Regulatory Institutions
Why might a country choose to aggregate regulatory information into a single government agency? And what might reverse this choice? We consider an oversight setting in which the institutional structure affects access to information. A regulator…
Group Affiliation and Default Prediction
Using a large sample of business groups from several countries around the world, we show that group information matters for parent and subsidiary default prediction. Group firms may support each other when in financial distress. Potential group…
Nash-in-Nash Tariff Bargaining with and without MFN
We provide an equilibrium analysis of the efficiency properties of bilateral tariff negotiations in a three-country, two-good general equilibrium model of international trade when transfers are not feasible. We consider “weak-rules” …
The Contribution of Bank Regulation and Fair Value Accounting to Procyclical Leverage
Our analytical description of how banks’ responses to asset price changes can result in procyclical leverage reveals that for banks with a binding regulatory leverage constraint, absent differences in regulatory risk weights across assets,…
Debt Contracts in the Presence of Performance Manipulation
Empirical and survey evidence suggest that firms often manipulate reported numbers to avoid debt covenant violations. The theoretical literature, by and large, has ignored the consequences of this phenomenon on debt contracting. Departing from a…