“Media Attention and Event-Based Grouping of Stocks: An Examination of Stocks Hyped by Media Outlets as Benefiting from the Olympics” with Patricia Dechow, Alastair Lawrence and Mei Luo (Management Science, 2024)
We examine five summer Olympics and identify stocks that media outlets hype as benefiting from the Olympics (Olympic stocks). There is a seven-year period from the time that a country first learns it has won the Olympic bid to the start of the games (Olympic time period). We predict that the excitement of the Olympics along with the greater media attention impacts the valuation and risk of Olympic stocks. Consistent with this prediction, we show that Olympic stocks earn higher returns than their matched counterparts and comove more strongly with each other over the Olympic time period. Olympic stocks also exhibit increases in trading volume and stock volatility on days when media outlets have stories linking the firm to the Olympic Games. However, we find no evidence that the Olympic Games translate into stronger fundamentals for Olympic firms or stronger fundamental comovements. These findings suggest that investors are not purchasing the stocks based on an analysis of fundamentals, but are purchasing them based on their Olympic attribute. To confirm that event-based groupings occur in other settings, we show that comovement increases for stocks classified by the media as “stay-at-home” stocks at the start of the COVID-19 pandemic.
“The Accounting Pipeline Shortage: Are We Making Progress? Evidence on Workload, Job Satisfaction, and Compensation" with Ryan T. Dunn, and Josh McGowan (Accounting Horizons, 2026)
The accounting profession faces a persistent pipeline shortage, with steep declines in graduates and CPA candidates raising concerns about audit quality, tax compliance, and financial reporting. Compensation and work-life balance concerns are often cited as reasons for the shortage. Using a novel dataset of 14,652 individual-year observations from 2021 to 2024, we document recent trends in real compensation, average weekly hours, and the link between workload and job satisfaction. Results show a significant decrease in weekly hours of 2.3 per week (4.7 percent), with reductions across the board but largest among mid-level staff and non-Big 4 firms. Our results also show fewer hours are associated with higher job satisfaction. By contrast, real compensation has decreased $3,686 (3.7 percent), with the sharpest declines at senior levels and in the consulting service line. Our findings highlight both progress and limits: firms are easing workload pressures, but continued declines in real compensation may hinder long-term retention.
“Understanding the Disclosure Practices of Firms Affected by a Natural Disaster: The Case of Hurricanes” (Submitted to a Top Tier Journal)
This paper investigates the disclosure practices of firms affected by hurricanes. I document that when a hurricane hits, there is an increase in investor uncertainty. During the hurricane period (approximately ten days), there is an increase in abnormal volume, stock volatility, spread, and illiquidity for firms that later report that they experienced hurricane damage. I find that firms with little to no impact from the hurricane disclose this information immediately after the hurricane. In contrast, firms impacted by the hurricane delay reporting the damage until the next earnings announcement. Furthermore, firms with “good news” that the hurricane had little damage to operations disclose this news in the headlines of the earnings release (high salience) while firms that disclose a negative impact are more likely to bury the news in the body of the earnings press release (low salience). I also find that hiding the news in the body of the text has attenuating effect (weaker stock market reaction) on those firms that disclose qualitative and not quantitative hurricane damage. These results are interesting for both US and international audiences because managers in all countries that experience natural disasters have to decide how to make disclosures about these news. The results also suggest that management’s strategic disclosure practices can be successful in reducing stock price volatility.
“Reclaiming Sovereignty: Native Americans’ Fight for Liberty and Municipal Bond Yields” with Artem M. Joukov, and Vikram Nanda (Preparing for Submission to a Top Tier Journal)
In 2020, the U.S. Supreme Court affirmed the sovereign jurisdiction of five Oklahoma tribes over crimes involving Native Americans on tribal lands. However, in 2022, the Court expanded state jurisdiction, granting Oklahoma and the federal government concurrent authority over offenses committed by non-tribal citizens against tribal members. While the 2020 decision had minimal impact on municipal bond yields, the 2022 ruling led to a significant increase of ten basis points, reflecting potential market concerns over criminal justice institutions and their potential for crime prevention. These landmark decisions represent a nuanced policy shift toward reasserting tribal sovereignty for Native American communities. Using a differences-in-differences design and municipal bond data, we find that the restoration of tribal sovereignty has little effect on bond yields. In contrast, the subsequent expansion of state jurisdiction leads to a significant increase in municipal borrowing costs of approximately 10 basis points. We provide evidence that this effect is driven by changes in crime composition. Specifically, while property crime declines following the policy change, crimes against persons and society increase, and these effects dominate in their impact on yields. Further analysis shows that the increase in state involvement is associated with higher government expenditures and lower tax revenues, contributing to higher perceived risk by investors. These findings suggest that increased state enforcement does not necessarily reduce financial risk in this setting. Overall, the results highlight the importance of institutional context and suggest that restoring tribal sovereignty may improve economic outcomes by reducing uncertainty and borrowing costs.
“Foundations of sand: Home equity theft, home prices, and bond yields” with Artem M. Joukov (Preparing for Submission to a Top Tier Journal)
When collecting delinquent property taxes, some states historically engaged in home equity theft by selling a homeowner’s property to satisfy tax debts and retaining any surplus value. A recent U.S. Supreme Court ruling eliminated this practice nationwide, creating a natural experiment that strengthens property rights and allows us to examine its economic consequences. Using a differences-in-differences design and municipal bond data, we study how eliminating home equity theft affects local government financing and real estate markets. Consistent with well-established theories on the importance of property rights, we find that homeowners experience a significant wealth effect, reflected in higher residential property values following the ruling. Contrary to expectations, however, municipalities also benefit despite losing a direct revenue source and enforcement mechanism. Specifically, we document a statistically and economically significant decline in municipal bond yields of approximately five basis points in affected states. We show that this effect is driven by an expansion in the property tax base, as stronger property rights increase home values and reduce default risk for local governments. Overall, our findings highlight a previously underexplored tradeoff: policies that appear to reduce short-term government revenue can improve long-term fiscal stability. The results underscore both the private and public benefits of stronger property rights and contribute to the literature on taxation, real estate, and municipal finance.
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