This study examines the joint effect of disclosed measurement information and investor mindset on investors' judgments of estimate precision and firm value. Consistent with psychology theory, results reveal that short horizon investors adopt a relatively concrete mindset and long horizon investors adopt a relatively abstract mindset. As a consequence, disclosing that the fair value of an impair...

Sell-side securities analysts who recommend stocks that they own have a conflict of interest. If investors buy the stocks in response to the analysts’ recommendations, the stocks’ prices will rise, increasing the analysts’ personal wealth. Thus, analysts are legally required to disclose financial interests in securities of companies they cover. However, investors might view this disclosure favo...

This article looks at how a negative third-party quality signal, in the form of external monitoring of firm performance by an investor group, prompts a response from both institutional investors and the firms publicly identified as poor performers. Using a sample of 93 firms placed on the Focus List of the Council of Institutional Investors from 2000 to 2005 and a comparison group of 96 firms i...

Research Summary Health science firms have long product development horizons and need regulatory approval for market entry. In communicating with investors, they may use entrepreneurial orientation (EO) rhetoric to emphasize their strategic behavioral commitment innovation However, because EO constitutes a soft-information signal rather than evidence of substantive commitment, investors suspect...

In this paper I analyze investors’ reactions to changes in the expense ratios of equity mutual funds. I show that investment flows’ response to fees cannot be fully explained by looking at investors’ performance sensitivity. While performance sensitivity monotonically increases with past performance, price sensitivity does not: investors who buy top past performers seem to be “distracted” by th...

This study intended to explore when and how often fixed asset revaluation (FAR) is practiced in Bangladesh explain the impacts of FAR on net value (NAV), stock prices, debts companies. Based 175 listed companies Dhaka Stock Exchange, this found increasing use model where textile industry witnessed highest number revaluations. Most were irregular revaluer, they performed during bull market 2010....

Abstract This paper provides evidence that the #MeToo movement revised investors’ beliefs about costs (benefits) of fostering an exclusive (inclusive) culture, as reflected by absence (presence a critical mass) women directors in board room. Tracking timeline events associated with begin Harvey Weinstein exposé October 2017 New York Times , we document contrasting market reactions to depending ...

We analyze the impact of price trends on trading decisions of more than 40, 000 households with accounts at a major discount brokerage house. Buying and selling decisions of investors in our sample are influenced by short-term (less than 3 months) price trends. By comparing the observed distributions of average trend before buys and average trend before sells with the average trend distribution...