I am a Ph.D. candidate in Finance at the Ohio State University, Fisher College of Business. I expect to graduate in May of 2020.
My research interests are centered around empirical corporate finance and behavioral finance.
A firm's investment is responsive to the valuations of neighboring firms. This relation goes beyond peer effects, agglomeration economies, and correlated regional valuations. I provide evidence that the ability of firms to raise external finance rises and falls with the valuations of other firms headquartered nearby.
Return extrapolation is not uniform across all firms. I exploit this heterogeneity in the cross-section and provide evidence that return extrapolation can help explain the value premium and long-term reversal, but plays little role for momentum.
The composition of industries today is largely a result of past industry booms. When industries are overvalued, new entrants tilt the composition of public firms toward these industries. Because overvalued industries do not subsequently undergo a disproportionate amount of delistings, this shift is long-lasting.
The degree to which investors overreact to news can largely be explained by the anchoring motive in a stock’s price. When the anchoring motive is weaker, stock prices are more responsive to news and experience greater return reversal.