Working Papers

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.

Mary E. Barth, Javier Gomez-Biscarri, Ron Kasznik, Germán López-Espinosa
April 2017

Based on a large sample of publicly listed and non-listed US commercial banks from 1996 to 2011, we find robust evidence consistent with banks using realized available for sale (AFS) securities gains and losses to...

Stefan J. Reichelstein, Ansu Sahoo
April 2017

Forthcoming in Contemporary Accounting Research

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...

Mary E. Barth, Steven F. Cahan, Lily Chen, Elmar R. Venter
April 2017

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 positive association between...

Katherine Casey
March 30, 2017

Voting is fundamentally a forecasting problem: voters try to predict future performance in office based on incomplete information about candidates. Forecast inputs combine observable professional qualifications with more subjective assessments of confidence and trustworthiness. In...

Aaron M. Garvey, Meg Meloy, Baba Shiv
March 29, 2017

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-stage...

David F. Larcker, Brian Tayan
March 28, 2017

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...

Brett S. Green, Brendan Daley, Victoria Vanasco
March 19, 2017

We explore the effect of credit ratings on loan origination and securitization. The model involves two stages: first, banks decide whether to originate a given loan pool or not, and obtain private information about the...

Mary E. Barth, Ken Li, Charles G. McClure
March 14, 2017

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 operating cash...

David Broockman, Christopher Skovron
March 9, 2017

The conservative asymmetry of elite polarization and the right-skewed “democratic deficit”—wherein policy is more conservative than majorities prefer on average—represent significant puzzles. We argue that such breakdowns in aggregate representation can arise because politicians systematically...

Lisa De Simone, Joseph D. Piotroski, Rimmy E. Tomy
March 3, 2017

We examine whether anticipation of Congress enacting a reduction in repatriation taxes affects the amount of cash U.S. multinational corporations (MNCs) hold overseas.  Prior papers have focused on which U.S. MNCs repatriated foreign cash and...

Gabriel Doyle, Amir Goldberg, Sameer B. Srivastava, Michael C. Frank
March 1, 2017

Cultural fit is widely believed to affect the success of individuals and the groups to which they belong. Yet

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Mary E. Barth, Wayne R. Landsman, Vivek Raval, Sean Wang
March 2017

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 that it...

Greg Buchak, Gregor Matvos, Tomasz Piskorski, Amit Seru
March 2017

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...

Kyle Bagwell, Robert W. Staiger, Ali Yurukoglu
March 2017

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. Several of these stylized facts lend...

Mark L. Egan, Gregor Matvos, Amit Seru
March 2017

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. Although both female...

Salman Arif, Azi Ben-Rephael, Charles M. C. Lee
February 24, 2017

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 time, short-sale volume...

Charles M. C. Lee, Ken Li
February 14, 2017

Predicted stock issuers (PSIs) are firms with expected “high-investment and low-profit” (HILP) profiles that earn unusually low returns.  Over a 36-year period (1978-2013), average returns to top-decile PSIs are indistinguishable from Treasury yields.  We show...

Susan Athey, Christian Catalini, Catherine E. Tucker
February 13, 2017

This paper uses data from the MIT digital currency experiment to shed light on consumer behavior regarding commercial, public and government surveillance. The setting allows us to explore the apparent contradiction that many cryptocurrencies offer...

Susan Athey, Stefan Wager
February 2017

There has been considerable interest across several fields in methods that reduce the problem of learning good treatment assignment policies to the problem of accurate policy evaluation. Given a class of candidate policies, these methods...

Ali Yurukoglu, Kyle Bagwell, Robert Staiger
February 2017

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” settings characterized by two cases: a...