Returns to Education and Macroeconomic Shocks: Evidence from Argentina Returns to schooling in urban Argentina increased from 1992 to 2003, a period of economic reforms and macroeconomic volatility. In this paper I provide the most consistent estimates of returns to education so far, while I also investigate earnings profiles over time. This paper contributes to the existing literature by emplo...

Abstract We examine whether dividends serve as substitutes or complements to accounting information in firm valuation. Consistent with substituting for earnings information, we find that dividend paying firms have 11%–15% lower response coefficients (ERCs) than non-payers. more substitution when the provides a stronger signal of permanent earnings: is less likely cut dividend, fund out rather c...

T he U.S. distribution of labor earnings is highly skewed to the right. Roughly, the lowest 50 percent of U.S. households, as measured by individual labor earnings, make 10 percent of total labor earnings. The next lowest 30 percent earn approximately 30 percent and highest 10 percent make 40 percent.1 Earnings are also related to a person’s position within a firm and employment at a particular...

This study analyzes the impact of investors’ attention, market sentiment, and company characteristics on stock price responses to earnings announcements, using Korean data from 2003 2019. First, we find that prices respond in same direction as unexpected earnings, significance response decreases time passes post-event period. Specifically, value stocks quickly appropriately during an event The ...

Behavioral Finance aims to explain empirical anomalies by introducing investor psychology as a determinant of asset pricing. This study provides strong evidence that anomalous stock price behavior following earnings announcements is due to a representativeness bias. It investigates current and past earnings surprises and subsequent market reaction for listed US companies over the period 1983-19...

This paper studies whether managers use investor information they learn from the stock market when making forward-looking disclosures. Using annual management earnings forecasts from 1996 to 2010, I find that the association between forecast revisions and stock price changes over the revision periods is stronger when there is more informed trading. Further, the effect of investor information on...

This paper explores the long-standing empirical fact of increased trading volume around news releases through the lens of canonical models of gradual information diffusion and differences of opinion. I use a unique dataset of clicks on news by key finance professionals to distinguish between trading among investors who see the news at different times and trading among investors who see the same...

Earnings press releases are ‘‘the major news event of the season for many companies as well as investors, analysts, financial media, and the market’’ (Mahoney and Lewis 2004). The information content of earnings press releases has increased significantly over time (Kross and Kim 2000; Lo and Lys 2001; Francis, Schipper, and Vincent 2002a, 2002b; Landsman and Maydew 2002; Collins, Li, and Xie 20...

The Making of Entrepreneurs in Germany: Are Native Men and Immigrants Alike? This paper uses a state of the art three-stage technique to identify the characteristics of the self-employed immigrant and native men in Germany and to understand their underlying drive into self-employment. Employing data from the German Socioeconomic Panel 2000 release we find that self-employment is not significant...