Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2017

Air Pollution, Behavioral Bias, and the Disposition Effect in China

Hong ZHANG, Massimo MASSA, Jennifer Jie LI, Jian ZHANG
Inspired by the recent health-science findings that air pollution reduces human cognitive skills, we examine whether air pollution can intensify cognitive bias observed in the financial markets. Based on a proprietary dataset obtained from a large mutual fund family in China, which contains the comp...
Keywords: Air Pollution, The Disposition Effect, Mutual Funds
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Senior Fellows/Fellows

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Senior Fellows/Fellows

Agent Orange: Trump, Soft Power, and Exports

Andrew K. ROSE
A country's exports rise when its leadership is approved by other countries.  I show this using a standard gravity model of bilateral exports, a panel of data from 2006 through 2017, and an annual Gallup survey which asks people in up to 157 countries whether they approve of the job performance of ...
Keywords: empirical, panel, data, gravity, Gallup, leadership, approval, positive, international
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Annual Conference

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Corporate Finance

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May 2022

Advanced Manufacturing, Product Innovations, Productivity and Growth

Elvira SOJLI, Leo LIU, Wing Wah THAM
This paper studies the role and complementarity of advanced manufacturing processes and product innovations for growth using new time-varying measures of process innovations, validated by patent examiners, from 1900 to 2020 across 60 countries. We uncover large and distinct effects of advanced manuf...
Keywords: Process innovation, Product innovation, Process-driven products, firm growth, Economic growth, Growth convergence
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Annual Conference

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Corporate Finance, Senior Fellows/Fellows

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May 2014

Activist-appointed Directors

Angie LOW, Jun-Koo KANG, Jungmin KIM, Hyemin KIM
We investigate how governance reform affects board functioning and firm value through the labor market channel. We find that unseasoned independent directors (UIDs), directors entering the director labor market for the first time, are an important source of labor supply after the 2002 enactment of t...
Keywords: Unseasoned independent directors, Labor market, Sarbanes-Oxley Act, Board of director, Monitoring and advisory roles
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Annual Conference

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Accounting

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May 2015

Accounting Measurement of Assets and Earnings and Market Valuation of Firm Assets

Ning ZHANG, Chen QI
In this paper we evaluate the quality of accounting reports for valuation purpose from a measurement error based perspective. This perspective views accounting assets and earnings noisy measurements of their underlying economic constructs, economic assets and economic income. We show that the useful...
Keywords: Accounting measurement, economic assets, economic income, accural accounting
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