Crisis and recovery in the wake of super-salient news: Who moves markets?

Abstract We compare reactions in the prices and trading patterns of common stocks and closed-end funds, which have substantially di¤erent investor clienteles, to the September 11, 2001 terrorist attacks. Even in assets with institutional buying, retail investor trading moved prices signi…cantly lower. Although greater salience has been shown to reduce underreaction to news, we conclude the extreme salience of this event resulted in overreaction. Subsequent reversals were substantially security-speci…c and therefore not due simply to improvement in general sentiment. Consistent with microstructure theory, the speed of reversals depended signi…cantly on the relative quality and availability of information about fundamental values. terrorist attacks. Even in assets with net institutional buying, retail investor trading moved prices signi…cantly lower. Although greater salience has been shown to reduce underreaction to news, we conclude the extreme salience of this event resulted in overreaction. Subsequent reversals were substantially security-speci…c and therefore not due simply to improvement in general sentiment. Consistent with microstructure theory, the speed of reversals depended signi…cantly on the relative quality and availability of information about fundamental values. JEL classi…cations: G12, G1

Publication Records of Faculty Promoted to Professor: Evidence from the UK Accounting and Finance Academic Community

This study investigates the publication profiles of 140 accounting and finance faculty promoted to the senior rank of professor at UK and Irish universities during the period 1992 to 2007. On average, approximately 9 papers in Association of Business Schools (ABS) (2008)-listed journals, with 5 at the highest 3*/4* quality levels in a portfolio of 20 outputs are required for promotion to professor. Multivariate analysis provides evidence that publication requirements in terms of ABS ranked journal papers have increased over time, an effect attributed to the government research assessment exercise. There is no evidence that requirements differ for: internal versus external promotion, male versus female candidates; accounting versus finance professors, research intensity of institution peer group; or government research ranking of unit. There is also no evidence of a substitution effect in relation to increased recent publication history, quantity of non-ABS outputs or sole-authorship, all of which show a significant complementary effect. It is noted that there is very limited overlap in the UK and US publication journal sets, suggesting underlying geographically-based paradigm differences. The benchmarks provided in this study are informative in a range of decision settings: recruitment; those considering making an application for promotion to a chair and those involved in promotion panels; cross-disciplinary comparisons; and resource allocation. The evidence presented also contributes to the emerging policy debates concerning the aging demographic profile of accounting faculty, the management of academic labour and the Research Excellence Framework

Factors shaping prayer frequency among 9- to 11-year-olds

This paper begins by reviewing the evidence from international research concerning the personal and social correlates of prayer frequency during childhood and adolescence. Overall these data continue to support the view that young people who pray not only report higher levels of personal wellbeing but also report higher levels of pro-social attitudes. These findings raise a research question of particular relevance within church schools regarding the factors that predict higher levels of prayer activity among students. The Student Voice Project offers data that can illuminate this research question. Among the 3,101 9- to 11-year old students who participated in the project 11% prayed daily, 9% at least once a week, 32% sometimes, 11% once or twice a year, and 37% never. The present paper tests the power of four sets of predictor variables to account for individual differences in prayer frequency among these students: personal factors (age and sex), psychological factors (using the three dimensional model of personality proposed by Eysenck), church attendance (self, mother, and father), and family discussion about prayer (mother, father, and grandparents). Multiple regression analyses identified the discussion of prayer with the mother as the single most important predictor. These findings locate the development of the practice of prayer within the home, even more than within the church

U.S. monetary policy and herding: Evidence from commodity markets

This paper investigates the presence of herding behavior across a spectrum of commodities (i.e., agricultural, energy, precious metals, and metals) futures prices obtained from Datastream. The main novelty of this study is, for the first time in the literature, the explicit investigation of the role of deviations of U.S. monetary policy decisions from a standard Taylor-type monetary rule, in driving herding behavior with respect to commodity futures prices, spanning the period 1990-2017. The results document that the commodity markets are characterized by herding, while such herding behavior is not only driven by U.S. monetary policy decisions, but also such decisions exert asymmetric effects this behavior. An additional novelty of the results is that they document that herding is stronger in discretionary monetary policy regimes.N/

Nonlinear Contracts, Zero Profits and Moral Hazard.

Contracts that base payments on an ex post variable are examined. It is shown that a quadratic contract form may elicit truthful responses from auction participants and offer zero expected profits to the winning bidder, but not eliminate adverse incentives ex post. A general impossibility theorem is proven. This theorem establishes that, regardless of functional form, no contract can offer zero expected profits and resolve the ex post moral hazard problem. Copyright 1987 by The Review of Economic Studies Limited.

Who moves markets in a sudden market-wide crisis? Evidence from nine-eleven

Abstract We compare reactions in the prices and trading patterns of common stocks and closed-end funds (CEFs), which have substantially di¤erent investor clienteles, to the September 11, 2001 terrorist attacks. When the market reopened six days later, retail investors sold and there were sharp price declines-even in assets with net institutional buying. In the subsequent two weeks, price reversals were substantially security-speci…c and thus not simply due to improved systematic sentiment. Consistent with microstructure theory, comparisons between CEFs and common stocks show the speed of these reversals depended signi…cantly on the relative quality and availability of information about fundamental values