Publications
(with Dylan Norris and Andrew Schrowang)
The Financial Review, forthcoming
[Abstract]: This study examines the relation between managerial reference points and corporate payout policy. We find that share repurchase activity increases as a firm’s current stock price declines in relation to the price at which it previously repurchased shares. To facilitate a behavioral interpretation of this relation, we show that it weakens around stock splits, is asymmetric over gains and losses, and strengthens when prior repurchase prices are more salient. Further, the relation is not explained by traditional repurchase motives. The results suggest a behavioral pattern in which managers use prior repurchase prices as reference points for current repurchases.
Finance Research Letters, 2022, 49, 103113
[Abstract]: This paper uses a novel method to assess the timing of corporate share repurchases by examining abnormal returns after firms stop repurchasing shares. This method reveals several new findings. First, repurchasing firms experience positive abnormal returns only after they stop repurchasing shares. Second, the impact of repurchase timing is underestimated when abnormal returns are estimated after all repurchases. Third, there is evidence that frequent repurchasers and large firms time their repurchases, but only when measuring abnormal returns after they stop repurchasing shares. These findings have important implications for future research and regulation surrounding share repurchases.
(with Don Autore and Danling Jiang)
Financial Management, 2021, 50(3), 727-746
[Abstract]: Many corporate executives believe blockchain technology is broadly scalable and will achieve mainstream adoption, yet there is little evidence of significant shareholder value creation associated with corporate adoption of blockchain technology. We collect a broad sample of firms that invest in blockchain technology and examine the stock price reaction to the first public revelation of this news. Initial reactions average close to +15% and are followed by reversals over the next three months. However, we report a striking difference based on the credibility of the investment. Blockchain investments that are at an advanced stage or are confirmed in subsequent financial statements are associated with higher initial reactions and little or no reversal. The results suggest that credible corporate strategies involving blockchain technology are viewed favorably by investors.
(with Don Autore and Baixiao Liu)
Journal of Banking and Finance, 2019, 107
[Abstract]: This study examines the role of activist investors in firms’ decisions to conduct open market share repurchases. Compared with firms making ordinary share repurchases, firms making activist-involved repurchases have more cash holdings, are more undervalued, experience better subsequent stock performance and similar improvements in operating performance, and eventually repurchase more shares. Moreover, repurchasing firms in which an activist investor claims to take a passive role exhibit no undervaluation, and repurchasing firms that make multiple repurchases exhibit share undervaluation only in repurchases where an activist is involved. In all, our findings suggest that activist-involvement is associated with improved corporate repurchase decisions.
Working Papers
Blockchain and Earnings Management: Evidence from the Supply Chain
(with Don Autore, Huimin Chen, and Jingrong Lin)
Do Large Repurchases Attract Activist Investors?
(with Don Autore, Matthew Gustafson, and Andrew Schrowang)
Equity Roundtrips
(with Don Autore)
Presentations (*Presented by Coauthor)
2023: Financial Management Association Annual Meeting (expected), Southern Finance Association Annual Meeting (expected)
2022: American Accounting Association Annual Meeting*, Eastern Finance Association Annual Meeting, Illinois State University, University of Alabama in Huntsville, Southwestern Finance Association Annual Meeting
2021: Academy of Behavioral Finance and Economics Annual Meeting, Financial Accounting and Reporting Section Midyear Meeting*, Financial Management Association Annual Meeting, Southern Finance Association Annual Meeting
2020: Financial Management Association Annual Meeting
2019: Financial Management Association Annual Meeting, Hofstra University*, Middle Tennessee State University, 2019 New York Block Summit Series 2*, Stony Brook University*, University of Alabama at Birmingham, Virginia Tech*
2018: Southern Finance Association Annual Meeting