Publication Type:Academic Journal

Source(s):Journal of Financial & Quantitative Analysis. Aug2022, Vol. 57 Issue 5, p1727-1770. 44p.

Abstract:An abundance of evidence relates facial width-to-height ratio (fWHR) to masculine behaviors in males. We show that hedge funds operated by high-fWHR managers underperform those operated by low-fWHR managers, bear greater downside risk, are more suscept...

Publication Type:Academic Journal

Source(s):Review of Financial Studies. Aug2022, Vol. 35 Issue 8, p3710-3741. 32p.

Abstract:This paper proposes an aggregation scheme of subjective bond return expectations based on the historical accuracy of professional interest rate forecasters. We use disaggregated survey data on bond returns and document large disagreement in the cross-s...

Publication Type:Academic Journal

Source(s):Journal of Financial & Quantitative Analysis. Aug2022, Vol. 57 Issue 5, p1834-1861. 28p.

Abstract:Does financial development facilitate micro-entrepreneurship? Using randomized surveys of over 1 million Indian households and bank-branch location as predetermined by government policy, we find that access to finance shifts workers from informal micro...

Publication Type:Academic Journal

Source(s):Journal of Financial & Quantitative Analysis. Aug2022, Vol. 57 Issue 5, p1987-2021. 35p.

Abstract:I examine whether local bank finance facilitated the transition to a service-based economy in the U.S. I identify a causal role for local finance in service job creation. I use county-level changes to alcohol laws as demand shocks to service employers ...

Publication Type:Academic Journal

Source(s):Journal of Financial & Quantitative Analysis. May2022, Vol. 57 Issue 3, p1023-1057. 35p.

Abstract:Theory says an American call should never be exercised early, except possibly just before an ex-dividend date. But the best market bid is regularly lower than the intrinsic value for in-the-money short-maturity options. An American option can always be...

Publication Type:Academic Journal

Source(s):Journal of Financial & Quantitative Analysis. Mar2022, Vol. 57 Issue 2, p514-542. 29p.

Abstract:This paper documents that short-term options achieve significantly lower returns during months with 4 versus 5 weeks between expiration dates. The average return differential ranges from 16 to 29 basis points per week for delta-hedged portfolios, and f...

Publication Type:Academic Journal

Source(s):Academy of Management Journal. Apr2022, Vol. 65 Issue 2, p371-402. 32p. 1 Diagram, 8 Charts, 4 Graphs.

Abstract:Past research has produced contradictory insights into how prior collaboration between organizations--their relational embeddedness--impacts collective collaborative performance. We theorize that the effect of relational embeddedness on collaborative s...

Publication Type:Academic Journal

Source(s):Journal of Accounting, Auditing & Finance. Apr2022, Vol. 37 Issue 2, p324-351. 28p. 9 Charts.

Abstract:Extant theories suggest that managers may use hedging either to alleviate underinvestment problems caused by costly external financing or to promote overinvestment by circumventing the scrutiny of external capital markets. We empirically investigate th...

Publication Type:Academic Journal

Source(s):Journal of Financial Service Professionals. May2022, Vol. 76 Issue 3, p18-22. 5p.

Abstract:This column provides a point-counterpoint discussion about the use of bonds in client portfolios. As discussed, we agree that bonds can play an important role in generating income, reducing portfolio variance, and optimizing a portfolio's Sharpe ratio....

Publication Type:Academic Journal

Source(s):Review of Financial Studies. Apr2022, Vol. 35 Issue 4, p1643-1681. 39p.

Abstract:We show that constraints can improve financial decision-making by disciplining behavioral biases. In financial markets, restrictions on leverage limit traders' ability to borrow to open new positions. We demonstrate that regulation that restricts the p...