Partha Mohanram

Learn More
This paper investigates the decision by top-level executives of more than 1,200 public corporations to exercise large stock option awards in the period 1992-2001. We hypothesize and find that abnormally large option exercises predict stock return future performance. We then hypothesize that this predictive ability represents private information about(More)
This paper tests whether a strategy based on financial statement analysis of low book-to-market (growth) stocks is successful in differentiating between winners and losers in terms of future stock performance. I create an index (G_SCORE) based on a combination of traditional fundamentals such as earnings and cash flows and measures appropriate for growth(More)
We analyze the impact of Regulation Fair Disclosure (Reg. FD) on the functioning of financial analysts. We find that after controlling for macroeconomic effects, the impact of Reg. FD on absolute forecast errors is insignificant. Analysts are however more likely to make divergent predictions in the post-FD period indicating greater independence. We also(More)
This paper investigates the impact of the debt-contracting value (DCV) of borrowers’ accounting information on the likelihood of private debt renegotiation and the implication of renegotiation for borrowing firms’ investment efficiency. DCV captures the inherent ability of firms’ accounting numbers to predict future credit quality. Building on incomplete(More)
Prior research shows that firms generating earnings growth by improving profitability create shareholder value, while firms generating earnings growth through investment destroy value. This paper examines whether compensation committees consider this while determining CEO compensation. We first confirm prior results that growth from increased profitability(More)
Several recent papers assume that private information (PIN), proposed by Easley, Hvidkjaer and O’Hara (2002, 2004), is a determinant of stock returns. In this paper, we formally test whether PIN is indeed priced. We first replicate Easley, Hvidkjaer and O’Hara (2002) and show that while PIN does predict future returns in the sample they analyze, the effect(More)
We estimate implied cost of equity capital (re) for a sample of firms from 1984 to 1998 using the Ohlson and Juettner (2000) model that does not make restrictive assumptions about clean surplus and payout policies. We find that re is strongly positively associated with conventional risk factors such as earnings variability, systematic and unsystematic(More)
The accruals anomaly, demonstrated by Sloan (1996), generated significant excess returns consistently for over four decades until 2002. Since then, the accruals anomaly has apparently disappeared. In this paper, I argue that one factor responsible for this decline is the increasing incidence of analysts’ cash flow forecasts which has provided markets with(More)
Relative Performance Evaluation (RPE) theory predicts that firms filter out common shocks (i.e., those affecting the firm and its peers) while evaluating CEO performance, and that the extent of filtering increases with the number of firms in the peer group. Despite the intuitive appeal of the theory, previous tests of RPE find weak and inconsistent(More)