We study the use of residual income (RI) valuation methods by U.S. sell-side equity analysts, particularly as compared to DCF. We document that RI valuations are rare — just 1/16th as common as DCF — and that different RI and DCF valuations are not infrequently provided by the same analyst...

Companies' earnings conference calls are perceived to be venues for sell‐side equity analysts to ask management questions. In this study, we examine another important conference call participant — the buy‐side analyst — that has been under-explored in the literature due to data...

This study examines whether and how female directors enhance innovation performance. Based on a sample of U.S. firms, this study shows that firms with more female directors on boards present a more pronounced positive association between R&D and future firm performance (measured by earnings and...

We investigate the joint hypothesis that a) tax expense contains information about core profitability that is incremental to reported earnings and b) that information is reflected in stock prices with a delay. We find that seasonally-differenced quarterly tax expense, our proxy for tax expense...

High-frequency trading has become a dominant force in the U.S. capital market, accounting for over 70% of dollar trading volume. This study examines the implication of high-frequency trading for stock price volatility and price discovery. I find that high-frequency trading is positively...

We study the uneven effects of a commodity boom, documenting its impact across workers based on their skill and on the region where they live. To this end, we develop a dynamic quantitative model of an economy with many regions connected through interregional trade and migration. Empirically, we...

Recent research suggests managerial short-termism is associated with lower corporate sustainability, measured by environmental, social, and governance (ESG) ratings and sustainable institutional ownership. Using plant-level data on toxic releases from the United States Environmental Protection...

Whether proportionate consolidation (PC) or the equity method (EM) provides more informative financial statements has been controversial. This study uses data from listed companies in Hong Kong to investigate the value relevance of EM compared to PC during 2005-2008 when the local word-for-word...