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We examine whether an increase in focus is an explanation for the stock market gains associated with spino!s. For a sample of 155 spino!s between the years 1975 and 1991, we "nd that the announcement period as well the long-run abnormal returns for the focus-increasing spino!s are signi"cantly larger than the corresponding abnormal returns for the(More)
Effective October 23, 2000, the Securities and Exchange Commission adopted a set of fair disclosure rules (“Reg FD”) that prohibit companies from disclosing earnings or other material business information to some analysts or large investors before announcing it publicly. This paper empirically analyzes the implications of these new rules on several aspects(More)
participants at the workshops at Tulane University and the annual Financial Management Association meetings, two anonymous referees and many of our colleagues for helpful comments at various stages of this research. We also thank Lipper Analytical Services, Inc. for providing data on monthly total net assets and returns, and thank Mark Carhart for data on(More)
Miller [1977. Risk, uncertainty, and divergence of opinion. Journal of Finance 32, 1151–1168] hypothesizes that prices of stocks subject to high differences of opinion and short-sales constraints are biased upward. We expect earnings announcements to reduce differences of opinion among investors, and consequently, these announcements should reduce(More)
  • Allan Eberhart, Zhaoyang Gu, +11 authors T. L. YOHN
  • 2008
Prior research documents mean reversion in firm profitability and growth under the implicit assumption that profitability and growth of all firms revert to a common benchmark at the same rate. However, a large body of academic research suggests that there are systematic interindustry differences (e.g., industry barriers to entry) that differentially affect(More)
A questionnaire was sent to 511 patients with epilepsy who were being reviewed at the clinics of two consultant neurologists. The questionnaire asked 19 questions about seizure type and how the diagnosis was given. It also asked how much information was given about the disease and advice about living with it. There were also questions about counselling and(More)
Prior work has identified binding credit constraints during recessions. We assess whether corporate diversification alleviates these constraints. We use relative-to-industry growth in sales and growth in inventories as measures of a firm’s ability to fund its activities. We find that during recessions, industry-adjusted sales growth rates drop more for(More)
We present strong evidence that high differences of opinion stocks earn lower returns around earnings announcements. The evidence is similar across six different proxies for differences of opinion (earnings volatility, return volatility, dispersion of analysts’ earnings forecasts, number of analysts, firm age, and share turnover). The three-day hedge(More)