My areas of interest include Corporate Payout Policy, Dividend Signaling, Asymmetric Information, Behavioral Finance, Empirical Asset Pricing, Investor Communication, and International Finance.
“Asymmetric Information and Dividends”
I assess the validity of the dividends signaling hypothesis when accounting for asymmetric information. I find that firms that have higher levels of asymmetric information, both in absolute levels and in relative levels to the firm, are less likely to pay or increase dividends. Dividend changes are not strong predictors of future earnings performance when firms are sorted by asymmetric information. Positive market reactions to dividend increases or initiations are linked to other forces. I do not find support for the dividend signaling hypothesis.
“140 Characters or Fewer: The Effect of Social Media and Gender on the Stock Market” with Bong Soo Lee
Using a unique sample of Twitter posts, also called tweets, We examine the impact of social media on the return, volume, and volatility of the stock market using word list and algorithmic content analysis. We show market returns may be predicted using confidence and sentiment levels. Volume is only predicted by confidence. Volatility is most related to sentiment. We examine one dimension of Twitter user characteristics, namely gender. Our results show that men are more confident and optimistic than women when they communicate about stocks. We find differences in the ability of communications by men and women to predict market returns, volume, and volatility.
Works in Progress
“An Empirical Profile of Overconfidence in Finance”
“Overconfidence in Asset Returns”