Publications

This study examines characteristics and valuation of claim loss reserves of property casualty insurers. Using SEC disclosures of revisions (development) in loss reserve estimates, we document substantial serial correlation in loss reserve…

We examine the effect of underwriting relationships on analysts’ earnings forecasts and recommendations. Lead and co-underwriter analysts’ growth forecasts and recommendations are significantly more favorable than those made by unaffiliated…

Salesperson and executive compensation contracts typically specify a nonlinear relationship between firm revenues and pay. These agents therefore have incentive to manipulate prices, influence the timing of customer purchases, and vary effort…

The authors derive a theoretical relationship between the aggregate market share elasticity matrix and the aggregate brand switching matrix on the basis of a logit model of heterogeneous consumers choosing among competing brands in a product…

This study tests predictions that pricing multiples on and incremental explanatory power of equity book value (net income) increase (decrease) as financial health decreases. Tests using a sample of 396 bankrupt firms and tests using a larger,…

Even after a quarter of a century, the groupthink hypothesis remains an influential framework for understanding the origins of group decision making fiascoes. Much of the original empirical evidence for this hypothesis was derived from a…

This study provides evidence on the relevance and reliability of option pricing-based value estimates for bonds and their components, i.e., conversion, call, put and sinking fund features. Findings reveal component value estimates represent large…

We identify and analyze a class of economies with asymmetric information that we call quasi-complete. For quasi-complete economies we determine equilibrium trades, show that the set of fully informative equilibria is a singleton, and give…

We propose an approach to the predictive validation of conjoint models that overcomes several limitations of current approaches. There are situations in which a company, after completing a conjoint study, can compare the actual sales of two (or…

Using qualitative data from a large, successful private sector corporation (The Body Shop International), which was managed and staffed by an unusually high proportion of women, this paper questions whether norms of impersonality need be a…

This paper provides some empirical generalizations regarding how the relative prices of competing brands affect the cross-price effects between them. Particular focus is on the asymmetric price effect, which states that the price promotion by a…

A number of theories have been proposed to explain the medium-term momentum in stock returns identified by Jefadeesh and Titman (1993). We test one such theory based on the gradual-information-diffusion of Hong and Stein (1997)—and establish…

This paper examines the competitive effects of recent commercial bank entry into the corporate debt underwriting market. In particular, the effects of bank entry on underwriter spreads, ex-ante yields, and market concentration. We find that…

Brand value estimates are significantly positively related to prices and returns, incremental to accounting variables. Questionable brand value estimate reliability underlies lack of financial statement recognition for brands. Findings suggest…

We find that brand value estimates reported by Financial World are significantly positively related to prices and returns, incremental to other accounting variables. Concerns about brand value estimate reliability underlie lack of financial…

In this paper we document that stocks highly recommended by analysts outperform the market, while those that are unfavorably recommended underperform. Our findings are based on an extensive analysis of over 360,000 analyst recommendations from…