Publications

Instrumental variable (IV) methods are commonly used in accounting research (e.g., earnings management, corporate governance, executive compensation, and disclosure research) when the regressor variables are endogenous. While IV estimation is the…

We introduce limited liability in a model with a continuum of ex ante identical agents who face aggregate and idiosyncratic income risk. These agents can trade a complete menu of contingent claims, but they cannot commit and shares in a Lucas…

These studies examined how the practice of accounting for one’s time-so that work can be billed or charged to specific clients or projects-affects the decision to allocate time to volunteer activities. Using longitudinal data collected from law…

Three studies explored think (“I think … ”) versus feel (“I feel … ”) message framing effects on persuasion. The authors propose a matching hypothesis, suggesting that think framing will be more persuasive when the target attitude or message…

This study empirically tests the notion of global youth through an investigation of college-educated youths’ attitudes toward global brands and the influential drivers behind such attitudes in China and the United States. In both samples, a…

Two days after Haiti’s devastating earthquake, a medical relief team made up in part of four emergency physicians and four emergency nurses from Stanford University Hospital and three emergency physicians from Columbia University Medical…

We show whether central clearing of a particular class of derivatives lowers counterparty risk. For plausible cases, adding a central clearing counterparty (CCP) for a class of derivatives such as credit default swaps reduces netting…

While it is recognized that the high degree of leverage used by financial institutions creates systemic risks and other negative externalities, many argue that financial institutions must rely on extensive debt financing since equity financing is…

Many startup companies go through the so-called “entrepreneurial crisis” when they reach a headcount somewhere between 50 and 100 employees. At this point, the CEO and her team have to transition from a personal to a professional management style…

Drawing on distinctiveness and social identity theories, the present studies tested whether minority opinion holders would have a more clearly defined sense of self than majority opinion holders. In Study 1, participants who were induced to…

The present study examines the relationship between racial prejudice and reactions to President Barack Obama and his policies. Before the 2008 election, participants’ levels of implicit and explicit anti-Black prejudice were measured. Over the…

Across four studies we demonstrate that people in a position to provide help tend to underestimate the role that embarrassment plays in decisions about whether or not to ask for help. As a result, potential helpers may overestimate the likelihood…

This study examines the use of performance-based incentives for internal monitors (general counsel and chief internal auditor) and whether these incentives impair monitors independence by aligning their interests with the interests of those being…

We embed a structural model of credit risk inside a dynamic continuous-time consumption-based asset pricing model, which allows us to price equity and corporate debt in a unified framework. Our key economic assumptions are that the first and…

A central question surrounding the current subprime crisis is whether the securitization process reduced the incentives of financial intermediaries to carefully screen borrowers. We examine this issue empirically using data on securitized…

We study the “percolation” of information of common interest through a large market as agents encounter and reveal information to each other over time. We provide an explicit solution for the dynamics of the cross-sectional distribution of…

Using a large sample of individual investor records over a nine-year period, we analyze survival rates, the disposition effect, and trading performance at the individual level to determine whether and how investors learn from their trading…

We utilize a qualitative study of 33 employees in for-profit and non-profit organizations to elaborate theory on job crafting. We specifically focus on how employees at different ranks describe perceiving and adapting to challenges in the…

The selection of political representatives depends on the political system. Principals, such as voters or districts, may benefit by strategically electing representatives different from themselves. While a status-quo biased delegate may be a…