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Research and Publications

Babson College encourages and supports a variety of thought leadership and research activities to increase the public visibility and academic reputation of the College and its faculty, regionally, nationally, and internationally.

Below is a sampling of published research, working papers and areas of research being pursued by the Babson College finance division faculty.

Jennifer Bethel

“Creating and Conserving Shareholder Wealth in Emerging Markets: Recent Evidence,” Jennifer Bethel, Kathleen Hevert and Laurie Krigman, Stock Market Developments and Shareholder’s Wealth Effects: Evidence from Emerging Markets, Nova Science Publishers, Inc., 2013

“The Importance of Financial Policy Makers Making Informed Decisions,” Jennifer Bethel and Erik Sirri, Current Perspectives on Modern Equity Markets, CLS & Associates, 91-104, 2010

“Managing the Costs of Issuing Common Equity: The Role of Registration Choice,” Jennifer Bethel, Laurie Krigman, Quarterly Journal of Finance and Accounting, 47(4), 57-85, 2009; Reprinted in Banking and Capital Markets: New International Perspectives, Harold Black, Lloyd P. Blenman, and Edward Kane, eds., World Scientific Press, 2009

“The Market for Shareholder-Voting Rights Around Mergers and Acquisitions: Evidence from Institutional Daily Trading and Voting,” Jennifer Bethel, Gang Hu and Qinghai Wang, Journal of Corporate Finance, 15, 129-145, 2009

“Legal and Economic Issues in Litigation Arising from the 2007-2008 Credit Crisis,” Jennifer Bethel, Allen Ferrell and Gang Hu, Brookings-Nomura Papers on Financial Services, Brookings Institution Press, 2009; (Translated into Chinese: Comparative Studies, 39, 54- 96, China CITIC Press, 2009)

“Policy Issues Raised by Structured Products,” Jennifer Bethel and Allen Ferrell, Brookings-Nomura Papers on Financial Services, Yasuki Fuchita, Robert E. Litan, eds., Brookings Institution Press, 2007

“Recent Changes in Disclosure Regulation: Description and Evidence,” Journal of Corporate Finance, 13, 335–342, 2007

“The Contribution of Investment Bank and Investor Incentives to Boom-and-Bust Cycles,” Jennifer Bethel and Laurie Krigman, 2003

Richard Bliss

“Private Equity: The Differences between Developed and Emerging Markets,” Private Equity in Emerging Markets: The New Frontiers of International Finance, Darek Klonowski, editor, 2012, Palgrave Macmillan, New York, 2012

“Decision Making and Risk Aversion in the Cash Cab,” Richard Bliss, Mark Potter and Chris Schwarz, Journal of Economic Behavior and Organization, Vol. 84 No.1, pages 163-173, 2012

Entrepreneurial Finance Strategy, Valuation and Deal Structure, Richard Bliss, Janet Smith and Richard Smith, Stanford University Press, 2011

“Profitable Growth by Acquisition,” The Portable MBA; Finance and Accounting, 4th Edition, John L. Livingstone and Theodore Grossman, editors, John Wiley & Sons, Inc., New York, 2009

“Woman managers in Poland and the United States: A comparative analysis,” Richard Bliss and Lidija Polutnik; Industrial Relations Journal, Vol.34, Issue 3, 210-225, 2003

“Women Business Owners and Managers in Poland”, Richard Bliss and Ewa Lisowska and Lidija Polutnik, Volume 3, Research in Entrepreneurship and Management, John Butler, editor

“Estimating Semiconductor Sales (A) and (B),” Richard Bliss and Norean Sharpe, A Casebook for Business Statistics (2nd Ed.), New York: John Wiley & Sons, 2002

“Mutual Fund Managers: Does Gender Matter?” Richard Bliss and Mark Potter, Journal of Business and Economic Studies, Vol. 8, No. 1, 2002

Ryan Davies

"Financial intermediaries in the midst of market manipulation: Did they protect the fool or help the knave?” Ryan Davies, Vladimir Atanasov and John J. Merrick, Jr., Journal of Corporate Finance, 2015

“Smart Fund Managers? Stupid Money?” Ryan Davies and Dan Bernhardt, Canadian Journal of Economics, 42(2), 719-748, 2009

“Using Matched Samples to Test for Differences in Trade Execution Costs,” Ryan Davies and Sang Soo Kim, Journal of Financial Markets, 12(2). 173-202, 2009

“Fund of Hedge Funds Portfolio Selection: A Multiple-Objective Approach,” Ryan Davies, Harry Kat and Sa Lu, Journal of Derivatives and Hedge Funds 15(2), 91-115, 2009

“Cross Hedging with Single Stock Futures,” Ryan Davies, Chris Brooks and Sang Soo Kim, Assurances et Gestion des Risques 74(4), 473-504, 2007

“Long-term Information, Short-lived Securities,” Ryan Davies, Dan Bernhardt and John Spicerc, Journal of Futures Markets 26(5), 465-502, 2006

“Painting the Tape: Aggregate Evidence,” Ryan Davies and Dan Bernhardt, Economics Letters 89(3), 306-311., 2003

“The Toronto Stock Exchange preopening session,” Journal of Financial Markets 6(4), 491-516.

“Building a Competitive and Efficient European Financial Market,” Ryan Davies, Alfonso Dufour and Brian Scott-Quinn, European Capital Markets Institute Short Paper No. 4, 103 pages, 2003

“The MiFID: Competition in a New European Equity Market Regulatory Structure,” Ryan Davies, Alfonso Dufour and Brian Scott-Quinn, Investor Protection in Europe: Corporate Law Making, The MiFID and Beyond, eds. Guido Ferrarini, Eddy Wymeersch; Oxford University Press, 163-197, 2006

“Single Strategy Funds of Hedge Funds: How Many Funds?” Ryan Davies, Harry Kat and Sa Lu, Fund of Hedge Funds: Performance, Assessment, Diversification and Statistical Properties, ed. Greg Gregoriou, Elsevier, 203-210, 2006

John Edmunds

“The 1959-73 Mandatory Oil Import Quota Program: U.S. Energy Policy or a Camouflaged Subsidy?” John Edmunds and Sitanshu Singh, The Journal of American Business Review, Cambridge, vol. 1, no. 2, Summer 2013, pp. 275-292, 2013

"The National Strategic Petroleum Reserve: an anachronism or a springboard?” John Edmunds and Sitanshu Singh, Environmental Economics, vol. 4, issue 1, 2013, pp. 81-90, 2013

“Job creation in the post-modern economy” John Edmunds and Keith St. John, Problems and Perspectives in Management. Volume 8, Issue 3, 2010

“Las Principales fuentes de riesgo o inestabilidad” América Económica

“The Macro Dimensions of Chile’s Export Dilemma” John Edmunds and Francisco Arroyo, Global Economy Journal. Berkeley Electronic Press, 2009

“Brave New Wealthy World,” Financial Times Pearson Prentice Hall, 2003

Wealth by Association: Global Prosperity through Market Unification, John Edmunds and John Marthinsen, Praeger Press, 2003

“Euro’s a Boon to Europe,” John Edmunds and John Marthinsen, The Providence Journal, 2005

Steven Feinstein

“Underestimation of Securities Fraud Aggregate Damages Due to Inter-Fund Trades.” Steven Feinstein, Gang Hu, Mark Marcus, and Zann Ali, Journal of Forensic Economics, September 2013, Vol. 24, No.2, pp. 161-173, 2013

“Distortion in Corporate Valuation: Implications of Capital Structure Changes” Steven Feinstein, Allen Michel and Jacob Oded, Managerial Finance, 2011, Vol. 37(8), pp. 681-696, 2011

“Market Signals of Investment Unsuitability” Steven Feinstein, Alexander Liss and Steven Achartz, Law360.com, 2010.

“Planning Capital Expenditure,” The Portable MBA; Finance and Accounting, 4th Edition, John L. Livingstone and Theodore Grossman, editors, John Wiley & Sons, Inc., New York, 2009

“Financial Management of Risks,” The Portable MBA; Finance and Accounting, 4th Edition, John L. Livingstone and Theodore Grossman, editors, John Wiley & Sons, Inc., New York, 2009

“Fraud-on-the-market Theory: Is a Market Efficient?” Steven Feinstein, Allen Michel and Israel Shaked, American Bankruptcy Institute Journal, 2005

“Valuation of Credit Guarantees” Steven Feinstein, Allen J. Michel and Israel Shaked, Journal of Forensic Economics 17(1), pp. 17-37, 2005

“A Better Understanding of why NPV Undervalues Managerial Flexibility,” Steven Feinstein and Diane Lander, The Engineering Economist, Volume 47, Number 4, 2002

Michael Goldstein

“Inter-Market Competition listed Securities,” Michael Goldstein, Andriy V. Shkilko, Bonnie F. Van Ness and Robert A. Van Ness, The Review of Quantitative Finance and Accounting, vol 35, no 4, 371-391, 2010

“Trading at the Speed of Light: The Impact of High-Frequency Trading on Market Performance, Regulatory Oversight, and Securities Litigation,” Pavitra Kumar, Michael Goldstein and Frank Graves, Finance: Current Topics in Corporate Finance and Litigation, The Brattle Group, Issue 2, 2011

“Do Dividends Matter More in Declining Markets?” Michael Goldstein and Kathleen P.Fuller, The Journal of Corporate Finance, Vol. 17, No. 3, 457-473, 2011

“Purchasing IPOs with commissions: Theoretical predictions and empirical results,” Michael Goldstein, Paul Irvine and Andy Puckett, The Journal of Financial Quantitative Analysis, 2010

“InterCon Travel Health: Case B,” Michael Goldstein, Gregory Truman and Dessislava Pachamanova, Journal of Information Systems Education, Vol. 21, Number 1, 27-32, 2010

“An Analysis of Liquidity across Markets: Execution Costs on the NYSE Versus Electronic Markets,” Michael Goldstein, Gang Hu and J. Ginger Meng, Liquidity, Interest Rates, and Banking, 2009, Jeffrey Morrey and Alexander Guyton (editors), Nova Publishers, Chapter 7, 139-167, 2009

“Brokerage Commissions and Information Allocation,” Michael Goldstein, Paul Irvine, Eugene Kandel and Zvi Wiener, The Review of Financial Studies, Vol. 22, No. 12, 5175-5212, 2009

“Competition in the Market for NASDAQ Securities,” Michael Goldstein, Andriy Shkilko, Robert Van Ness and Bonnie Van Ness, Journal of Financial Markets, Vol 11, No 2 , 113-143, 2008

“InterCon Travel Health Teaching Note and Case Study,” Michael Goldstein, Gregory Truman and Dessislava Pachamanova, Journal of the Academy of Business Education, Vol 8, 17-32, 2007

“Transparency and Liquidity: A Controlled Experiment on Corporate Bonds,” Michael Goldstein, Edith Hotchkiss and Erik Sirri, The Review of Financial Studies, Vol. 20, No. 2, 235-273, 2007

“The Intraday Probability of Informed Trading on the NYSE,” Michael Goldstein, Robert Van Ness and Bonnie Van Ness, Advances in Quantitative Analysis of Finance and Accounting, Ivan Brick, Tavy Ronen, and Chen-Few Lee (editors), World Scientific Press, Vol. 3, Chapter 7, 139-158, 2006

“Trading Strategies during Circuit Breakers and Extreme Market Movements,” Michael Goldstein and Kenneth Kavajecz, Journal of Financial Markets, Vol. 7, No. 3, 301-333, 2004

“Eighths, Sixteenths, and Market Depth: Changes in Tick Size and Liquidity Provision on the NYSE,” Michael Goldstein and Kenneth Kavajecz, Journal of Financial Economics, Vol. 56, No. 1, 125-149, 2000

“Market Making and Trading in NASDAQ Stocks,” Michael Goldstein and Edward Nelling, Financial Review, Vol. 34, No.1, 1999

“REIT Return Behavior In Advancing and Declining Stock Markets,” Michael Goldstein and Edward Nelling, Real Estate Finance, Vol. 15, No.4, 68-77, 1999

“Privatization in Post-Communist Economies,” Michael Goldstein and N. Bulent Gultekin, Financial Sector Reform and Privatization in Transition Economies, John Doukas, Victor Murinde and Clas Wihlborg (editors), Advances in Finance, Investment and Banking, North-Holland, Vol. 7, 283-327, 1998

“Privatization Success and Failure: Finance Theory and Regulation in the Transitional Economies of Albania and the Czech Republic,” Managerial and Decision Economics, Vol. 18, No.7&8, 529-544, 1997

“Quotes, Order Flow, and Price Discovery,” Michael Goldstein and Marshall Blume, The Journal of Finance, Vol. 52, No.1, 221 - 244. Abstract appeared in Journal of Finance, 1997

“Pratiquer les meilleurs prix permet-il d’attirer les transactions? Cotations et flux d’Ordres sur les bourses américaines,” Michael Goldstein and Marshall Blume, Organisation et qualité des marchés financiers, (Chapitre XIII), Presses Universitaires de France, ed. Biasis, Davydoff and Jacquillat, 1997

“Real Estate Investment Trusts, Small Stocks, and Bid-Ask Spreads,” Michael Goldstein, Edward Nelling, James Mahoney and Terry Hildebrand, Real Estate Economics, Vol. 23, No. 1, 45-63, 1995

Jasmina Hasanhodzic

"Generational Risk—Is It a Big Deal? Simulating an 80-Period OLG Model With Aggregate Shocks,” Jasmina Hasanhodzic and Laurence Kotlikoff, NBER Working Paper, 2013
 
“A Computational View of Market Efficiency,” Jasmina Hasanhodzic, Andrew W. Lo and Emanuele Viola, Quantitative Finance, 7: 1043-1050, 2011                                                                    
 
“The Evolution of Technical Analysis: Financial Prediction from Babylonian Tablets to Bloomberg Terminals,” Jasmina Hasanhodzic and Andrew W. Lo, Hoboken, NJ: John Wiley and Sons, 2010
       
“The Heretics of Finance: Conversations with Leading Practitioners of Technical Analysis,” Jasmina Hasanhodzic and Andrew W. Lo, New York, NY: Bloomberg Press, 2009
 
Can Hedge-Fund Returns Be Replicated?: The Linear Case,” Jasmina Hasanhodzic and Andrew W. Lo, Journal of Investment Management, 2: 5-45, 2007 

Richard Herron

"How much does your banker's target-specific experience matter?," Richard Herron, forthcoming

"What matters more in payout? Firm or country?," Richard Herron, forthcoming

"Do investors follow directors?," Richard Herron and Jay Dahya, 2016

"World Dividends and Tax Shocks," Richard Herron, forthcoming

"Tax Shelters, Financing Decisions, and Firm Value," Richard Herron, Raj Nahata and Jian Hua, forthcoming

"Mergers and Ambiguity," Richard Herron and Yehuda Izhakian, forthcoming

"Payout and Ambiguity," Richard Herron, Jay Dahya and Yehuda Izhakian, forthcoming

Kathy Hevert

“Apple and Dell, 2007,” Case Study, Babson Classic Collection, April 2013. Case Reference # BAB062C

“Apple and Dell, 2007,” Teaching Note, Babson Classic Collection, April 2013. Case Reference # BAB062TN

“Starbucks Corporation: Financial Analysis of a Business Strategy,” Case, Babson Classic Collection, July 2013. Case Reference # BAB036N

“Blue Heron Capital Partners, LLC,” Case, Babson Classic Collection, February 2012. Case Reference # BAB711-PDF-ENG

“Blue Heron Capital Partners, LLC,” Teaching Note, Babson Classic Collection, February 2012. Case Reference # BAB712-PDF-ENG

“Blue Heron Capital Partners, LLC,” Spreadsheet Supplement, Babson Classic Collection, February 2012, Case Reference # BAB713-XLS-ENG

“Venture capital investing by information technology companies: did it pay?” Kathy Hevert and Stephen A. Allen, Journal of BusinessVenturing, 2007

“Real Options Primer: A Practical Synthesis of Concepts and Valuation Approaches,” Journal of Applied Corporate Finance, Vol. 14, No. 2, 25-40, 2001

“Financial Education in an Integrated, Undergraduate Curriculum,” Kathy Hevert, Richard Bliss, Michael Ho, Mark Potter, and Linda Stoller, Journal of Financial Education, Volume 26, Spring 2000

Laurie Krigman

“Top VC IPO Underpricing," Laurie Krigman, Daniel Bradley and Incheol Kim, Journal of Corporate Finance, Volume 31, 186-202, 2015

“Creating and Conserving Shareholder Wealth in Emerging Markets: Recent Evidence,” Laurie Krigman, Jennifer Bethel and Kathleen Hevert, Stock Market Developments and Shareholder’s Wealth Effects: Evidence from Emerging Markets, Nova Science Publishers, Inc., 2013

 “Managing the Costs of Issuing Common Equity: The Role of Registration Choice,” Laurie Krigman and Jennifer Bethel, Quarterly Journal of Finance and Accounting, 47(4), 2009, 57-85; Reprinted in Banking and Capital Markets: New International Perspectives, Harold Black, Lloyd P. Blenman, and Edward Kane (editors), World Scientific Press, 2009

“On the Timing and Execution of Open Market Repurchases,” Laurie Krigman, Doug Cook and Chris Leach, The Review of Financial Studies, Vol. 17, No.2, 463-498, 2004
 “An Analysis of SEC Guidelines for Executing Open Market Repurchases,” Laurie Krigman, Doug Cook and Chris Leach, The Journal of Business, 76, No.2, 289-315, 2003
“Strategic IPO Underpricing, Information Momentum and Lockup Expiration Selling,” Laurie Krigman, Raj Aggarwal and Kent L. Womack, The Journal of Financial Economics, 66, No. 1, 105-137, 2002
“Why Do Firms Switch Underwriters?”  Laurie Krigman, Wayne Shaw and Kent L. Womack, The Journal of Financial Economics, 60, No. 2-3, 245-284, 2001
“The Persistence of IPO Mispricing and the Predictive Power of Flipping,” Laurie Krigman, Wayne Shaw and Kent L. Womack, 1999, The Journal of Finance 54, No. 3, 1015-1044, 1999

 

Mark Potter

“Decision Making and Risk Aversion in the Cash Cab,” Richard Bliss, Mark Potter and Chris Schwarz, Journal of Economic Behavior and Organization, Vol. 84 No.1, pages 163-173, 2012

“The Mutual Fund Scandal and Investor Response,” Mark Potter and Chris Schwarz, Journal of Index Investing, Vol.3 (1), pp. 29-38, 2012

“Teaching Finance and Financial Accounting in an On-Line Program,” Journal of Modern Accounting and Auditing, Vol. 8, no.3, pp. 330-339, 2012

“Performance Characteristics of Individual vs. Team Managed Mutual Funds,” Mark Potter, Richard Bliss and Chris Schwarz, Journal of Portfolio Management 34.3, pp. 110-119, 2008

“Opinion Divergence Among Professional Investment Managers,” Mark Potter, Gang Hu and Ginger Meng, Journal of Business Finance and Accounting 35(5)&(6), pp.679-703, 2008.

“Corporate Ethics and Shareholder Wealth: Does it Pay to Be Green?” Mark Potter, Don Chambers and Nelson Lacey, Corporate Finance Review, 2004.

“The Impact of Gender and Social/Professional Networks on Behavior: Evidence from Mutual Fund Managers,” Mark Potter and Richard Bliss, Corporate Finance Review, 2003.

“Mutual Fund Managers: Does Gender Matter?” Mark Potter and Richard Bliss, Journal of Business and Economic Studies, Volume 8, No. 1, pp. 1-15, 2002

“The Determinants of Aggregate Mutual Fund Flows,” Journal of Business and Economic Studies, Volume 6, No. 2, pp. 55-73, 2000

“Integrating The Undergraduate Business Curriculum: The Case of Babson College,” Mark Potter and Richard Bliss, Journal of Business Education, Volume 1, pp. 1-13, 2000

“Financial Education in an Integrated, Undergraduate Curriculum,” Mark Potter, Richard Bliss, Kathy Hevert, Michael Ho, and Linda Stoller, Journal of Financial Education, Volume 26, pp. 1-13, 2000

“Valuing Federal Disaster Loans for Investment: A Stochastic Model Approach,” Mark Potter, Austin Kelly and Nelson Lacey, Journal of Alternative Investments, Volume 1, No. 3, 1998

“Equity-Based Commodity Trading Advisors: A Performance Appraisal,” Journal of Alternative Investments, Volume 1, No. 1, pp. 41-55, 1998

“Evidence on the Effect of Taxes on Firms’ Decisions to Retire Debt Early,” Mark Potter, Gil Manzon and Tom Porter, Journal of Financial Research, Vol. XIX, No. 3, pp. 327-337, 1996

“Managed Futures and Hedge Fund Investment for Downside Equity Risk Management,” Mark Potter, Tom Schneeweis and Richard Spurgin, Derivatives Quarterly, pp. 1-11, 1996

Erik Sirri

Comment on “Tax-Subsidized Underpricing: Issuers and underwriters in the Market for Bulid America Bonds by Richard C. Green, Dario Cestau, and Norman Schurhoff,” Journal of Monetary Economics, v.60, n.5, 2013.

“Regulatory Politics and Short Selling,” University of Pittsburgh Law Review, Vol. 71, No. 3,pp. 517-544, 2010

“Consolidation and Competition in U.S. Equity Markets,” Erik Sirri and Robert L.D. Colby, Capital Markets Law Journal, Vol. 5, No. 2, pp. 169-196, 2010

“Preferencing and Market Quality on U.S. Equity Exchanges,” Erik Sirri and Mark Peterson, Review of Financial Studies, Vol.16, No.2, 385-415, 2003

“Evaluation of the Biases in Execution Cost Estimation Using Trade and Quote Data,” Erik Sirri and Mark Peterson, Journal of Financial Markets, Vol.6, No.3, 259-280, 2003

“Order Submission Strategy and the Curious Case of Marketable Limit Orders,” Erik Sirri and Mark Peterson, Journal of Financial and Quantitative Analysis, Vol.37, No.2, 221-241, 2002

Jerome Taillard

"Do Private Firms Invest Differently than Public Firms?," Taking Cues from the Natural Gas Industry,” Jerome Taillard and Erik Gilje, Journal of Finance, forthcoming

"What’s your Identification Strategy? Innovation in Corporate Finance Research,” Jerome Taillard, Don Bowen and Laurent Frésard, Management Science, forthcoming

"Did Government Regulations Lead to Inflated Credit Ratings?,” Jerome Taillard, Patrick Behr and Darren Kisgen, Management Science, forthcoming

"Financial Expertise of the Board, Risk Taking and Performance: Evidence from Bank Holding Companies,” Jerome Taillard, Bernadette Minton and Rohan Williamson, Journal of Financial and Quantitative Analysis, 2014

"The Disciplinary Effects of Non-Debt Liabilities: Evidence from asbestos litigation,” Journal of Corporate Finance, 2013