Annual Conference

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Accounting

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May 2017

Gender and beauty in the financial analyst profession: evidence from the United States and China

Kevin VEENSTRA, An-Ping LIN, Congcong LI, Hai LU
This study examines whether institutional investors’ voting for All-Star financial analysts is affected by analyst beauty. Using a sample of 1,135 U.S. analysts and controlling for analyst performance, we document that beauty, on average, does not affect the outcome of All-Star analyst voting. How...
Keywords: Analysts, Beauty, Information asymmetry, Labor market
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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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Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2017

Bonds, Stocks, and Sources of Mispricing

Doron AVRAMOV, Alexander PHILIPOV, Gergana JOSTOVA, Tarun CHORDIA
This paper shows that investor sentiment and financial distress jointly drive the equity overpricing underlying market anomalies. In particular, the intersection of high sentiment and rating downgrades of distressed firms characterizes episodes of inflated stock and bond prices to the extent that as...
Keywords: sentiment, mispricing, anomalies, bonds, stocks, Financial Distress
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Annual Conference

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Accounting, Senior Fellows/Fellows

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May 2017

CEO Contractual Protection and Debt Contracting

Qiang CHENG, Xia CHEN, Alvis K. LO, Xin WANG
CEO employment agreements and severance pay agreements are prevalent among S&P1500 firms. While prior research has examined their impact on corporate decision from shareholders’ perspective, there is little research on their impact from debtholders’ perspective. We examine the effect on debt...
Keywords: employment agreement, severance pay agreement, debt contracting
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Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2017

Climate Risks and Market Efficiency

Frank Weikai LI, Harrison HONG, Jiangmin XU
Climate science finds that the trend towards higher global temperatures exacerbates the risks of droughts. We investigate whether the prices of food stocks efficiently discount these risks. Using data from thirty-one countries with publicly-traded food companies, we rank these countries each year ba...
Keywords: Climate Risks, Climate Change, stock market, Efficiency, return predictability
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