Publications

Articles

“Overvalued Equity and Financing Decisions,” Ming Dong, David Hirshleifer, and Siew Hong Teoh, Review of Financial Studies, forthcoming.
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“Innovative Efficiency and Stock Returns,” David Hirshleifer, Po-Hsuan Hsu, and Dongmei Li, Journal of Financial Economics, 107(3), March, (2013):632-654.
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“Are Investors Really Reluctant to Realize their Losses? Trading Responses to Past Returns and the Disposition Effect,” Itzhak Ben-David and David Hirshleifer, Review of Financial Studies, 25(8), August, (2012):2485-2532.
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“Are Overconfident CEOs Better Innovators?” David Hirshleifer, Angie Low, and Siew Hong Teoh, Journal of Finance, 67(4), August, (2012):1457–1498.
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“Limited Investor Attention and Stock Market Misreactions to Accounting Information,” David Hirshleifer, Sonya Lim, and Siew Hong Teoh, Review of Asset Pricing Studies, 1(1), December, (2011): 35-73.
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“Taking the Road Less Traveled by: Does Conversation Eradicate Pernicious Cascades?” H. Henry Cao, Bing Han, and David Hirshleifer, Journal of Economic Theory, 146(4), July, (2011): 1418-1436.
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“Short Arbitrage, Return Asymmetry and the Accrual Anomaly,” David Hirshleifer, Siew Hong Teoh, and Jeff Jiewei Yu, Review of Financial Studies, 24(7), July, (2011): 2429-2461.
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“Do Investors Learn from Experience? Evidence from Frequent IPO Investors,” Yao-Min Chiang, David Hirshleifer, Yiming Qian, and Ann E. Sherman, Review of Financial Studies, 24(5), May, (2011):1560-1589.
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“The Accrual Anomaly: Risk or Mispricing?,” David Hirshleifer, Kewei Hou, and Siew Hong Teoh, Management Science, 58(2), February, (2012):320–335.
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“Fear of the Unknown: Familiarity and Economic Decisions,” Henry Cao, Bing Han, David Hirshleifer, and Harold Zhang, Review of Finance, 15(1), January, (2011):173-206.
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“Investor Overconfidence and the Forward Premium Puzzle,” A. Craig Burnside, Bing Han, David Hirshleifer, and Tracy Yue Wang, Review of Economic Studies, 78 (2), (2011):523-558.
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“A Financing-Based Misvaluation Factor and the Cross-Section of Expected Returns,” David Hirshleifer and Danling Jiang, Review of Financial Studies, 23(9), (2010):3401-3436.
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  • The UMO factor uses equity and debt financing to identify common misvaluation across firms. UMO is a zero-investment portfolio that goes long on firms that issue securities and short on firms that repurchase. UMO has a high Sharpe ratio, and UMO loadings strongly predict the cross-section of returns among general firms.


    Click here to download data on the UMO factor.

“A Cross-Cultural Study of Reference Point Adaptation: Evidence from China, Korea, and the US,” Hal R. Arkes, David Hirshleifer, Danling Jiang, and Sonya S. Lim, Organizational Behavior and Human Decision Processes, 112(2), July, (2010):99-111.
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“Accruals, Cash Flows, and Aggregate Stock Returns,” David Hirshleifer, Kewei Hou, and Siew Hong Teoh, Journal of Financial Economics, 91(3), March, (2009):389-406.
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“Promotion Tournaments and Capital Rationing,” Bing Han, David Hirshleifer, and John C. Persons, Review of Financial Studies, 22(1), January, (2009):219-255.
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“Systemic Risk, Coordination Failures, and Preparedness Externalities: Applications to Tax and Accounting Policy,” David Hirshleifer and Siew Hong Teoh, Journal of Financial Economic Policy, 1(2), May, (2009):128-142.
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“Driven to Distraction: Extraneous Events and Underreaction to Earnings News,” David Hirshleifer, Sonya S. Lim, and Siew Hong Teoh, Journal of Finance, 64(5), October, (2009):2289-2325.
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“The Psychological Attraction Approach to Accounting and Disclosure Policy,” David Hirshleifer and Siew Hong Teoh, Contemporary Accounting Research, 26(4), Winter, (2009):1067–1090.
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“Do Individual Investors Cause Post-Earnings Announcement Drift? Direct Evidence from Personal Trades,” David Hirshleifer, James N. Myers, Linda A. Myers, and Siew Hong Teoh, Accounting Review, 83(6), December, (2008):1521.
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“Psychological Bias as a Driver of Financial Regulation,” David Hirshleifer, European Financial Management, 14(5), November, (2008):856-874.
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“Reference Point Adaptation: Tests in the Domain of Security Trading,” Hal R. Arkes, David Hirshleifer, Danling Jiang, and Sonya Lim, Organizational Behavior and Human Decision Processes, 105(1), January, (2008):67-81.
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“Feedback and the Success of Irrational Investors,” David Hirshleifer, Avanidhar Subrahmanyam, and Sheridan Titman, Journal of Financial Economics, 81(2), August, (2006):311-338.
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“Does Investor Misvaluation Drive the Takeover Market?,” Ming Dong, David Hirshleifer, Scott Richardson, and Siew Hong Teoh, Journal of Finance, 61(2), April, (2006):725-762.
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“Decisions Without Blinders,” David Hirshleifer and Siew Hong Teoh, Harvard Business Review, 84(4), April, (2006):143.
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“A Generalized Earnings-Based Stock Valuation Model,” Ming Dong and David Hirshleifer, Manchester School, 73(s1), September, (2005):1-31.
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“Do Tender Offers Create Value? New Methods and Evidence,” Sanjai Bhagat, Ming Dong, David Hirshleifer, and Robert Noah, Journal of Financial Economics, 76(1), April, (2005):3-60.
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“Do Investors Overvalue Firms with Bloated Balance Sheets?,” David Hirshleifer, Kewei Hou, Siew Hong Teoh, and Yinglei Zhang, Journal of Accounting and Economics, 38(1), December, (2004):297-331.
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“Good Day Sunshine: Stock Returns and the Weather,” David Hirshleifer and Tyler Shumway, Journal of Finance, 58(3), June, (2003):1009-1032.
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“Limited Attention, Information Disclosure, and Financial Reporting,” David Hirshleifer and Siew Hong Teoh, Journal of Accounting and Economics, 36(1-3), December, (2003):337-386.
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“Herd Behaviour and Cascading in Capital Markets: A Review and Synthesis,” David Hirshleifer and Siew Hong Teoh, European Financial Management, 9(1), (2003):25-66.
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“An Economic Approach to the Psychology of Change: Amnesia, Inertia, and Impulsiveness,” David Hirshleifer and Ivo Welch, Journal of Economics & Management Strategy, 11(3), September, (2002):379-421.
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“Investor Psychology in Capital Markets: Evidence and Policy Implications,” Kent Daniel, David Hirshleifer, and Siew Hong Teoh, Journal of Monetary Economics, 49(1), January, (2002):139-209.
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“Sidelined Investors, Trading-Generated News, and Security Returns,” H. Henry Cao, Joshua D. Coval, and David Hirshleifer, Review of Financial Studies, 15(2), March, (2002):615-648.
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“On the Survival of Overconfident Traders in a Competitive Securities Market,” David Hirshleifer and Guo Ying Luo, Journal of Financial Markets, 4(1), January, (2001):73-84.
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“The Blurring of Boundaries between Financial Institutions and Markets,” David Hirshleifer, Journal of Financial Intermediation, 10(3-4), July-October, (2001):272-275.
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“Investor Psychology and Asset Pricing,” David Hirshleifer, Journal of Finance, 56(4), August, (2001):1533-1597.
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“Overconfidence, Arbitrage, and Equilibrium Asset Pricing,” Kent D. Daniel, David Hirshleifer, and Avanidhar Subrahmanyam, Journal of Finance, 56(3), June, (2001):921-965.
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“Investor Psychology and Security Market Under- and Overreactions,”Kent Daniel, David Hirshleifer, and Avanidhar Subrahmanyam, Journal of Finance, 53(6), December, (1998):1839-1885.
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“Learning from the Behavior of Others: Conformity, Fads, and Informational Cascades,” Sushil Bikhchandani, David Hirshleifer, and Ivo Welch, Journal of Economic Perspectives, 12(3), Summer, (1998):151-170.
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“Corporate Control Through Board Dismissals and Takeovers,” David Hirshleifer and Anjan V. Thakor, Journal of Economics & Management Strategy, 7(4), December, (1998):489-520.
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“Managerial Performance, Boards of Directors and Takeover Bidding,” David Hirshleifer and Anjan V. Thakor, Journal of Corporate Finance, 1(1), March, (1994):63-90.
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“Security Analysis and Trading Patterns When Some Investors Receive Information before Others,” David Hirshleifer, Avanidhar Subrahmanyam, and Sheridan Titman, Journal of Finance, 49(5), December, (1994):1665-1698.
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“Managerial Reputation and Corporate Investment Decisions,” David Hirshleifer, Financial Management, 22(2), Summer, (1993):145-160.
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“Futures versus Share Contracting as Means of Diversifying Output Risk,” David Hirshleifer and Avanidhar Subrahmanyam, Economic Journal, 103(418), May, (1993):620-638.
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“Managerial Conservatism, Project Choice, and Debt,” David Hirshleifer and Anjan V. Thakor, Review of Financial Studies, 5(3), July, (1992):437-470.
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“A Theory of Fads, Fashion, Custom, and Cultural Change as Informational Cascades,” Sushil Bikhchandani, David Hirshleifer, and Ivo Welch, Journal of Political Economy, 100(5), October, (1992):992-1026.
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“Risk, Managerial Effort, and Project Choice,” David Hirshleifer and Yoon Suh, Journal of Financial Intermediation, 2(3), September, (1992):308-345.
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  • Reprinted in The Theory of Corporate Finance, Vol. 1, M.J. Brennan editor, Edward Elgar Publishers, Cheltenham, UK, 1996, pp. 419-58.

“Corporate Control and Majority Positions,” David Hirshleifer, Cuadernos Economicos de ICE, 50(1), (1992):175-201.
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“Seasonal Patterns of Futures Hedging and the Resolution of Output Uncertainty,” David Hirshleifer, Journal of Economic Theory, 53(2), April, (1991):304-327.
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“Hedging Pressure and Futures Price Movements in a General Equilibrium Model,” David Hirshleifer, Econometrica, 58(2), March, (1990):411-428.
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  • Reprinted in The Theory of Futures Markets, P. Weller editor, Blackwell Publishers, Oxford, UK and Cambridge MA, ch. 4, (1992).

“Share Tendering Strategies and the Success of Hostile Takeover Bids,” David Hirshleifer and Sheridan Titman, Journal of Political Economy, 98(2), April, (1990):295-324.
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“Facilitation of Competing Bids and the Price of a Takeover Target,” David Hirshleifer and Ivan P. L. Png, Review of Financial Studies, 2(4), October, (1989):587-606.
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“Futures Trading, Storage, and the Division of Risk: A Multiperiod Analysis,” David Hirshleifer, Economic Journal, 99(397), September, (1989):700-719.
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“Determinants of Hedging and Risk Premia in Commodity Futures Markets,” David Hirshleifer, Journal of Financial and Quantitative Analysis, 24(3), September, (1989):313-331.
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“Cooperation in a Repeated Prisoners’ Dilemma with Ostracism,” David Hirshleifer and Eric B. Rasmusen, Journal of Economic Behavior and Organization, 12(1), August, (1989):87-106.
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“Residual Risk, Trading Costs, and Commodity Futures Risk Premia,” David Hirshleifer, Review of Financial Studies, 1(2), April, (1988):173-193.
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“Risk, Futures Pricing, and the Organization of Production in Commodity Markets,” David Hirshleifer, Journal of Political Economy, 96(6), December, (1988):1206-1220.
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“Price Discrimination through Offers to Match Price,” Ivan P. L. Png and David Hirshleifer, Journal of Business, 60(3), July, (1987):365-383.
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Other Publications

“Thought and Behavior Contagion in Capital Markets,” David Hirshleifer and Siew Hong Teoh, Ch. 1 of Handbook of Financial Markets: Dynamics and Evolution, Thorsten Hens and Klaus Reiner Schenk-Hoppé, eds., Handbooks in Finance series (William Ziemba, ed.), Elsevier/North-Holland, (2009):1-56.

“Richard A. Lanham, The Economics of Attention: Style and Substance in the Age of Information (2006, 326 pp, $29.00),” David Hirshleifer, Journal of Bioeconomics, 11(1), April, (2009):99-102.

“Information Cascades,” Sushil Bikhchandani, David Hirshleifer, and Ivo Welch, The New Palgrave Dictionary of Economics, Second Edition, Steven N. Durlauf and Lawrence E. Blume, eds., Palgrave Macmillan/U.K., May, 2008.

“Self-Deception and Deception in Capital Markets,” Joshua D. Coval, David Hirshleifer, and Siew Hong Teoh, Ch. 6 of Deception in Markets, Caroline Gerschlager, ed., Palgrave Macmillan/U.K., (2005):131-169.

“Informational Cascades and Social Conventions,” David Hirshleifer, in The New Palgrave Dictionary of Economics and the Law, May, (1998):23.

“Mergers and Acquisitions: Strategic and Informational Issues,” David Hirshleifer, Ch. 26 of Finance, vol. 9, North Holland Handbooks in Operations Research and Management Science, Robert A. Jarrow, Vojislav Maksimovic, and William T. Ziemba, eds., (1995):839-885.

  • Reprinted as Ch. 1 of Corporate Takeovers Modern Empirical Developments, vol. 2, Takeover Activity, Valuation Estimates, and Sources Of Merger Gains, B. Espen Eckbo, ed.

“The Blind Leading the Blind: Social Influence, Fads and Informational Cascades,” David Hirshleifer, Ch. 12 of The New Economics of Human Behaviour, Kathryn Ierulli and Mariano Tommasi, eds., Cambridge University Press, (1995):188-215.

“Takeovers,” David Hirshleifer, in The New Palgrave Dictionary of Money and Finance, (1993):638-645.

“Reputation, Incentives, and Managerial Decision,” David Hirshleifer, Ch. 26 of The New Palgrave Dictionary of Money and Finance, (1992):332-337.