We use longitudinal micro data to estimate the urban density premium for U.S. establishments, controlling for observed establishment characteristics and dynamic establishment behavior. We find that a doubling of urban density increases the average earnings of establishments by between 6 and 10 percent. The result holds after controlling for endogeneity issues and with the use of alternative mea...

We propose a model for the aggregate stock market together with its dividend yield and earnings yield so that the ex-ante risk premium could be extracted in an unobserved component modelling framework. We posit the model as a linked stochastic differential equation system and the linking variable is the ex-ante risk premium. By hypothesising a realistic dynamic structure for the ex-ante risk pr...

We examine corporate financial and investment decisions made by female executives compared with male executives. Male executives undertake more acquisitions and issue debt more often than female executives. Further, acquisitions made by firms with male executives have announcement returns approximately 2% lower than those made by female executive firms, and debt issues also have lower announcem...

This paper analyzes whether taller workers earn more then their shorter counterparts. Using GSOEP data from 1991 to 2002, earnings functions are estimated separately for male and female workers in both West and East German regions. The Hausman-Taylor IV estimator ist applied to account for unobservable heterogeneity including also timeinvariant indicators. The results do not suggest for an effe...

We estimate the effect that six types of high school math courses have on students’ earnings nearly a decade after graduation. We use High School and Beyond transcript data to differentiate courses at a more detailed level than in previous research. This enables us to show that more-advanced courses have larger effects than less-advanced ones. We also provide evidence that math courses can help...

Prior studies evaluate the relative importance of the sources of value that financial analysts bring to the market based on the price impact of forecast revisions over the event time. We find that management earnings forecasts influence the timing and precision of analyst forecasts. More importantly, evidence suggests that prior studies’ finding of weaker (stronger) stock-price responses to for...

This study examines 196 pure leverage increases consisting of senior offerings that reduce junior securities. We offer the following contributions not previously discovered by the senior-for-junior research. First, we show that firms for which less information exists have positive announcement period stock returns that are significantly greater than firms for which more information exists. Seco...

I replicate Barron, Harris, and Stanford's (2005) " Evidence That Investors Trade on Private-Event-Period Information around Earnings Announcements " which provides empirical support for theoretical models developed in Holthausen and Verrecchia (1990) and Kim and Verrecchia (1997). These model predict that private information generated at the time of an earnings announcement (private event-peri...

This study focuses on the market reaction to information transfers from economically linked customers. In particular, I examine whether investors have limited attention with respect to the information contained in customer earnings announcements for suppliers. Using 1,083 unique customer-supplier relationships for the period 1983–2011, I find that the cumulative abnormal returns of a supplier s...