Behavioral finance studies the application of psychology to finance, with a focus on
individual-level cognitive biases. I describe here the sources of judgment and decision …

Researchers have used various measures as indications of “earnings quality” including
persistence, accruals, smoothness, timeliness, loss avoidance, investor responsiveness …

ABSTRACT I discuss a new intellectual paradigm, social economics and finance—the study
of the social processes that shape economic thinking and behavior. This emerging field …

Abstract Models of political risk predict that increases in political uncertainty cause stock
prices to fall, especially for politically sensitive firms. We use the event of the Bo Xilai political …

The corporate information environment develops endogenously as a consequence of
information asymmetries and agency problems between investors, entrepreneurs, and …

We examine a potential benefit associated with the initiation of voluntary disclosure of
corporate social responsibility (CSR) activities: a reduction in firms' cost of equity capital. We …

We assess the role of both accruals manipulation (AM) and real activities manipulation
(RAM) in inducing overvaluation at the time of a seasoned equity offering (SEO). Our results …

Our objective is to penetrate the “black box” of sell‐side financial analysts by providing new
insights into the inputs analysts use and the incentives they face. We survey 365 analysts …

Firms with central boards of directors earn superior risk-adjusted stock returns. A long (short)
position in the most (least) central firms earns average annual returns of 4.68%. Firms with …

In this study, we examine whether managers delay disclosure of bad news relative to good
news. If managers accumulate and withhold bad news up to a certain threshold, but leak …