Research by Walker College of Business Professor of Finance Jeff Hobbs has been accepted by the Review of Quantitative Finance and Accounting.
The paper, co-authored by Hei Wai Lee and Vivek Singh of the University of Michigan, is entitled "New Evidence on the Effect of Belief Heterogeneity on Stock Returns." Their research explores a new measure to examine the effect of the heterogeneity of beliefs among investors on stock returns and the information asymmetry hypothesis versus the sidelined investor hypothesis.
Research from Hobbs was also published in the January issue of the Journal of Financial Crime. His paper, "Terrorism, Militarism and Stock Returns," explains that stock returns are significantly lower for those industries predicted to be most hurt than for other industries. Events that the authors predict to be of high impact to the market are followed by significantly lower returns than events we predict to be of low impact. Stocks perform significantly worse on the days of terrorist events than on the days of military events, but the opposite is true for the day after.
Hobbs, whose research interests are primarily concentrated in the area of corporate finance and include dividend policy, market efficiency, and agency theory, recently earned a 2016 Sywassink Award for Excellence.
Professor of finance publishes research on stock returns
Professor of finance publishes research on stock returns