The basic paradigm of asset pricing is in vibrant flux. The purely rational approach is being
subsumed by a broader approach based upon the psychology of investors. In this approach …

This paper examines three questions on the value relevance of customer satisfaction
measures:(1) Are customer satisfaction measures leading indicators of accounting …

Firm sizes and book‐to‐market ratios are both highly correlated with the average returns of
common stocks. Fama and French (1993) argue that the association between these …

This study examines the relation between analysts' incentives to cover firms and the extent
of their intangible assets. Because intangible assets typically are unrecognized and …

This paper uses pre‐offer market valuations to evaluate the misvaluation and Q theories of
takeovers. Bidder and target valuations (price‐to‐book, or price‐to‐residual‐income‐model …

This paper offers a model in which asset prices reflect both covariance risk and
misperceptions of firms' prospects, and in which arbitrageurs trade against mispricing. In …

Market Rewards Associated with Patterns of Increasing Earnings Page 1 Journal of Accounting
Research Vol. 37 No. 2 Autumn 1999 Printed in US.A. Research Reports Market Rewards …

We review extensive evidence about how psychological biases affect investor behavior and
prices. Systematic mispricing probably causes substantial resource misallocation. We argue …

This paper investigates whether the market rewards firms meeting current period earnings
expectations, and whether any such reward reflects the implications of meeting expectations …

Prior work has established that entrenched managers make value-decreasing acquisitions.
In this study, we determine how they destroy that value. Overall, we find that value …