Welcome to my website

I am an Associate Professor and Vice-Chair in the Department of Accounting and Information Systems at Rutgers Business School - Newark and New Brunswick.

I write about the functioning of capital markets.  I am interested in behavioral finance, asset pricing, agency conflicts, corporate structure, and corporate disclosure and reporting strategies. My work has been published in the Review of Financial Studies, Journal of Financial Economics, and the Journal of Accounting Research, among others.  Please use the tabs above to learn more about my research and teaching.

Recent papers:

Social Capital and Shareholder Activism: Evidence from Shareholder Governance Proposals (with Feng Gao), working paper.

Abstract

We examine whether firms’ social capital reduces shareholders’ demand for corporate governance changes. Using corporate social responsibility (CSR) performance as a proxy for social capital, we find a negative relation between CSR performance and the likelihood of shareholder governance proposals at annual meetings. We also find a negative relation between CSR and the percentage of votes in support for these proposals. When CSR performance is better, governance proposals that pass increases firm value by a greater amount and are more likely to be implemented. Collectively, our results demonstrate that social capital builds shareholder trust, which leads to better governance outcomes.


Shiller's CAPE: Market Timing and Market Efficiency (with Prem Jain), Financial Review, forthcoming.

Abstract

Robert Shiller shows that Cyclically Adjusted Price to Earnings Ratio (CAPE) is strongly associated with future long-term stock returns. This is often interpreted as evidence of market inefficiency. We present two findings contrary to such an interpretation. First, if markets are efficient, stock returns should be higher than the risk-free rate. We find that even when CAPE is in its ninth decile, future 10-year stock returns, on average, are higher than future returns on 10-year U.S. Treasurys. Thus, the results are largely consistent with market efficiency. Second, consistent with a risk-return tradeoff, we find that CAPE is negatively associated with future stock market volatility.




A favorite quote:

"Risk comes from not knowing what you are doing" -- Warren Buffett.