This paper shows that an important link between investor sentiment and firm overvaluation is optimistic earnings expectations, and that management earnings guidance helps resolve sentiment-driven overvaluation. Using previously identified firm characteristics, we find that most of the negative returns to uncertain firms in months following high-sentiment periods fall within the three-day window...

August 2013 Elizabeth Demers Darden Graduate School of Business University of Virginia Charlottesville, VA 22903 [email protected] Clara Vega Board of Governors of the Federal Reserve System Washington, DC 20551 [email protected] Abstract Using automated textual analysis algorithms to quantify the content of more than 20,000 managerial press releases from 1998 to 2006, this study pre...

This paper uses administrative data on schooling and earnings from Texas to estimate quantile treatment effects of college quality on earnings. We proxy college quality using the college sector from which students graduate and focus on identifying how graduating from UT-Austin, Texas A&M or a community college affects the distribution of earnings relative to graduating from a non-flagship unive...

This paper provides a rational explanation for earnings discontinuity in the context of the agency model. A company manager often possesses private information about the project’s expected return. This information is valuable to the firm because early warning that a project is unlikely to succeed allows the firm to fire the manager and to discontinue a project with an expected loss. When issuin...

This study is motivated by the idea that the racial gap in earnings is generated not only by individual differences but also by systematic variation in the occupational structure that attenuates or exacerbates the effects of race. Using data from the 1990 census and the Dictionary of Occupational Titles, a hierarchical linear modeling approach is employed that allows the simultaneous exploratio...

The increase in earnings inequality among men in particular in Canada has been well documented. This paper adds to our knowledge of inequality trends by addressing three issues. First, what has happened to earnings inequality among the employed population in the 1990s? We find that earnings inequality and polarization increased little in the population of all workers (men and women combined) be...

This study is motivated by the idea that the racial gap in earnings is generated not only by individual differences but also by systematic variation in the occupational structure that attenuates or exacerbates the effects of race. Using data from the 1990 census and the Dictionary of Occupational Titles, a hierarchical linear modeling approach is employed that allows the simultaneous exploratio...

Dr. Nowak is the director of the Institute and Outpatient Clinic for Occupational and Environmental Medicine at the Ludwig Maximilians University and a deputy for Occupational and Environmental Medicine at Technical University — both in Munich, Germany. Kassirer JP. Managed care and the morality of the marketplace. N Engl J Med 1995; 333:50-2. Bramley-Harker E, Barham L. Comparing physicians’ e...

Although trends in many physical characteristics and cognitive capabilities of modern humans are well-documented, less is known about how personality traits have evolved over time. We analyze data from a standardized personality test administered to 79% of Finnish men born between 1962 and 1976 (n = 419,523) and find steady increases in personality traits that predict higher income in later lif...

In the substantial literature on the relationship between migration and earnings, an important finding has been that the earnings of married women typically decrease with a move while the earnings of married men often increase. This is consistent with the story that married women are more likely to act as the “trailing spouse” or to be a “tied-mover.” This paper considers a related but largely ...