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This study uses out-of-sample equity value estimates to determine whether earnings disaggregation, imposing valuation model linear information (LIM) structure, and separate industry estimation of valuation model parameters aid in predicting contemporaneous equity values. We consider three levels of earnings disaggregation: aggregate earnings, cash flow and(More)
I propose that pre-IPO venture-backed biotech companies offer a useful new setting through which to evaluate the relative merits of theories for why firm size and book-to-market explain variation in stock returns. This is because pre-IPO biotech firms have large and rapidly evolving growth options relative to assets-in-place. Such attributes align closely(More)
We study voluntary financial disclosures using a proprietary database of 3,234 letters sent by 434 hedge funds to their investors. Our analysis includes aspects of funds' portfolios and performance as well as the presentation of performance. We find that managers use more frequent (monthly) and less frequent (quarterly) disclosures for somewhat different(More)
Employment in entrepreneurial firms is often associated with non-pecuniary benefits and access to unique technologies. We provide evidence that these work motivators are higher when the founder has more (and outside investors have less) influence over the firm's decision-making. In particular, we show that the degree of control exerted by venture capital(More)
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