Kin Chung Lo

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This paper provides theory and evidence showing how accounting variables explain cross-sectional stock returns. Based on Zhang (2000), who relates equity value to accounting measures of underlying operations, we derive returns as a function of earnings yield, equity capital investment, and changes in profitability, growth opportunities and discount rates.(More)
We modify the epistemic conditions for Nash equilibrium only to accommodate Gilboa and Schmeidler’s [Journal of Mathematical Economics, 18 (1989), 141–153] maxmin expected utility preferences, and identify the equilibrium concept in n-player strategic games that characterizes the modified epistemic conditions. The epistemic characterization supports the(More)
STUDY QUESTION How knowledgeable are men about the medical, environmental and psychological factors that are associated with male infertility? SUMMARY ANSWER Men, across most demographic groups, have limited knowledge of the various factors that are associated with male infertility. WHAT IS KNOWN ALREADY Few surveys have focused on men's knowledge of(More)
This paper studies strategic games in which the beliefs of each player are represented by a set of probability measures satisfying a parametric specialization that is called e-contamination. That is, beliefs are represented by a set of probability measures, where every measure in the set has the form (1 2 e)p* 1 ep, p* being the benchmark probability(More)
We consider a strategic situation in which each player may not know the probability distribution governing the information structures of his opponents, and consequently his beliefs about opponents' action choices are represented by a set of probability measures. Suppose that beliefs of all the players are common knowledge. Then for any subset of players,(More)
Firms’ financial data vary considerably with the size of their operations. Such scale differences potentially confound several types of inferences, of which this paper analyzes three. This paper evaluates two potential solutions to these inference problems suggested by theory: (i) deflating the data by a proxy for scale; and (ii) including a scale proxy as(More)