NYU Stern
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18th Annual Conference on Financial Economics and Accounting
Friday, October 26, 2007 and Saturday, October 27, 2007

  NYU Stern School of Business
  Henry Kaufman Management Center
  44 West 4th Street
  New York, NY 10012



Keynote Speaker:     Program Chairs: 

  Andrei Shleifer
  Professor of Economics
  Department of Economics
  Harvard Univrsity


        Kose John
       Charles William Gerstenberg Professor
       of Banking and Finance
       Leonard N. Stern School of Business
       Kaufman Management Center
       44 West 4th Street, Room 9-98
       New York, NY 10012
Joshua Ronen
Professor of Accounting
Peat Marwick Faculty Fellow
Leonard N. Stern School of Business
44 West 4th Street, Suite 10-71
New York, NY 10012


Please print and fill out the 
registration form 
and mail with the registration fee to the address
specified on the form.


Contact us:
Please contact the program chairs listed above with inquiries




We have blocked a number of rooms for the conference at the
Park Central Hotel for the nights of October 25, 26 and 27.  The hotel is located on 56th Street and 7th Avenue, NYC.  The name of the block is CFEA18, and we encourage you to reserve a room as soon as you know your travel plans.  To make reservations, please call 1-800-346-1359 and mention your group name:  CFEA18.  The room rate for this conference is $229 + applicable taxes. 


The conference is sponsored by the Stern School of Business Department of Finance, Department of Accounting, the Vincent C. Ross Institute of Accounting, the Salomon Center for the Study of Financial Institutions, and the NYU Pollack Center for Law & Business 

For a list of other reasonably-priced hotels within proximity of the University, click here:       
For directions to the conference, 
click here

Industry sponsor:







Friday, October 26, 2007                  11:30 - 1:30                 Registration         KMC Lobby                    


Friday, October 26, 2007                  12:00 - 1:30                 Lunch                  KMC 5-50                      


Session 1                             

 1:30 - 3:00

Finance: Corporate Finance    KMC 1-70
Chair: Matthew Richardson, New York University

Governance Through Exit and Voice: A Theory of Multiple Blockholders  [SLIDES]
Alex Edmans, University of Pennsylvania
Gustavo Manso, MIT
Discussant: Holger Mueller, New York University

Public Trust, the Law, and Financial Investment 
Bruce Ian Carlin, University of California at Los Angeles
Florin Dorobantu, The Brattle Group
S. Viswanathan, Duke University
Discussant: Daniel Wolfenzon, New York University

Non-Executive Stock Options and Firm Performance 
Yael V. Hochberg, Northwestern University
Laura Lindsey, Arizona State University
Discussant: Nagpurnanand Prabhala, University of Maryland [

Accounting:  Earnings Management    KMC 3-65
Chair: Eli Bartov, New York University

Abnormal Accruals and External Financing [SLIDES]
Theodore H. Goodman, University of Arizona
Discussant: Emre Karaoglu, University of Southern California

Earnings Volatility, Cash Flow Volatility, and Informed Trading [SLIDES]
Sudarshan Jayaraman, Washington University–St. Louis
Discussant: Lihong Liang, George Washington University [

The Use of Advertising Activities to Meet Earnings Benchmarks: Evidence from Monthly Data  
Daniel Cohen, New York University
Raj Mashruwala, Washington University–St. Louis
Tzachi Zach, Washington University–St. Louis
Discussant: Amy Y. Zang, University of Rochester [


Friday, October 26, 2007                  3:00 - 3:30                  Coffee Break            KMC 5-50                     


Session 2                             3:30 - 5:00

Finance:  CEO  Incentives    KMC 1-70
Chair:  Cheng-Few Lee, Rutgers University

Negative Hedging: Performance Sensitive Debt and CEOs' Equity Incentives 
Alexei Tchistyi, New York University
David Yermack, New York University
Hayong Yun, University of Notre Dame
Discussant: Antonio Falato, Federal Reserve Board

Investor Myopia and CEO Horizon Incentives 
Brian Cadman, Northwestern University
Jayanthi Sunder,Northwestern University
Discussant: Lalitha Naveen, Temple University [

CEO Centrality  [SLIDES]
Lucian Bebchuk, Harvard University
Martijn Cremers, Yale School of Management
Urs Peyer, INSEAD
Discussant: Charu Raheja, Wake Forest University

Accounting: Voluntary Management Disclosures   KMC 3-65
Chair: Stephen Ryan, New York University

Why Do Firms Issue Disaggregated Earnings Guidance? The Archival Evidence [SLIDES]
Benjamin Lansford, Northwestern University
Baruch Lev, New York University
Jennifer W. Tucker, University of Florida
Discussant:  Michael Kimbrough, Harvard Business School

Management Earnings Forecasts and Subsequent Price Formation [SLIDES]
Somnath Das, University of Illinois – Chicago

Kyonghee Kim, University of Illinois – Chicago  
Sukesh Patro, Kansas State University
Discussant: Michael Kimbrough, Harvard Business School

Stealth Disclosure of Accounting Irregularities: Is Silence Golden? 
Edward P. Swanson, Texas A&M University
Senyo Tse, Texas A&M University
Rebecca Wynalda, Texas A&M University
Discussant: Michael Kimbrough, Harvard Business School


5:30 – 6:45 PM Reception (Faculty Lounge, KMC 11-185 ), sponsored by CRA International

7:00 – 9:00 PM Dinner (Cantor Boardroom, KMC 11-75)

Keynote Speaker: Andrei Shleifer, Harvard University


Saturday, October 27, 2007              7:30 - 8:30          Continental Breakfast    M1-100 KMC Commons 


Session 3                           8:30 - 10:00

Finance: Law and Finance   KMC 2-60
Chair: William Allen, New York University

Shareholders at the Gate? Cross-Country Evidence on the Role of Institutional Investors
in Mergers and Acquisitions
Miguel A. Ferreira, ISCTE
Massimo Massa, INSEAD
Pedro Matos, University of Southern California
Discussant: Anzhela Knyazeva, University of Rochester

Corporate Lobbying and Fraud Detection  
Frank Yu, University of Minnesota
Xiaoyun Yu, Indiana University
Discussant: Simi Kedia, Rutgers University

Stealing from Thieves: Firm Governance and Performance when States are Predatory 
Art Durnev, McGill University  
Larry Fauver, University of Miami
Discussant: Diana Knyazeva, University of Rochester 

Accounting:  Strategic Disclosure:  Evidence and Consequences    T200
Chair: Paul Zarowin, New York University

Do Cross-listed Firm Provide the Same quality Disclosure as U.S. Firms?
Evidence from the Interest Control Deficiency Disclosure Under Section 302
of the Sarbanes-Oxley Act

Guojin Gong, Pennsylvania State University
Bin Ke, Pennsylvania State University
Yong Yu, University of Texas-Austin
Discussant: Sarah McVay, University of Utah [

Strategic Timing of Pro Forma Earnings Announcements 
Nerissa C. Brown, University of Southern California
Theodore E. Christensen, Brigham Young University
W. Brooke Elliott, University of Illinois at Urbana-Champaign
Discussant: Carol Marquardt, Baruch College

Tempting Trading Opportunities and Litigation Consequences              
Mary Brooke Billings, New York University
Discussant: Susan Shu, Boston College

Saturday, October 27, 2007               10:00 - 10:30             Coffee Break    M1-100 KMC Commons       


Session 4                          10:30 - 12:00

Empirical Corporate Finance   KMC 2-60

Chair: Lemma W. Senbet, University of Maryland

Contingency and Renegotiation of Financial Contracts: Evidence form Private Credit Agreements  
Michael R. Roberts, University of Pennsylvania
Amir Sufi, University of Chicago
Discussant: Dirk Hackbarth, Washington University 

Optimal CEO Incentives and Industry Dynamics  
Antonio Falato, Federal Reserve Board
Dalida Kadyrzhanova, University of Maryland
Discussant: Christa Bouwman, Case Western University 

Debt as a Bonding Mechanism: Evidence from the Relations Between
Employee Productivity, Capital Structure, and Outside Employment Opportunities
Jayant R. Kale, Georgia State University
Harley E. Ryan, Jr., Georgia State University
Lingling Wang, Georgia State University
Discussant:Xiaoyun Yu, Indiana University [

Accounting:  Valuation  T200
Chair: John Hand, University of North Carolina – Chapel Hill

Does the Stock Market Fully Value Intangibles? Employee Satisfaction and Equity Prices [SLIDES] 
Alex Edmans, University of Pennsylvania
Discussant: Mozaffar Khan, Massachusetts Institute of Technology [

The Accrual Anomaly: Exploring the Optimal Investment Hypothesis 
Jin Ginger Wu, University of Georgia
Lu Zhang, University of Michigan
X. Frank Zhang, Yale School of Management
Discussant: Mozaffar Khan, Massachusetts Institute of Technology

Does Conservative Stock Option Accounting Lead to Aggressive Cash Flow Reporting? 
Paul Hribar, University of Iowa
D. Craig Nichols, Cornell University
Discussant: Mozaffar Khan, Massachusetts Institute of Technology 

Saturday, October 27, 2007                  12:00 - 1:30                 Lunch      M1-100 KMC Commons              


Saturday, October 27, 2007    12:00 - 1:30     Meeting of Executive Committee of CFEA  KMC 10-181


Session 5                          1:30 - 3:00


Finance: Asset Prices: Theory KMC-2-60
Chair: Stijn Van Nieuwerburgh, New York University

Financial Distress and the Cross Section of Equity Returns [SLIDES]
Lorenzo Garlappi, University of Texas at Austin
Hong Yan, University of South Carolina
Discussant: Alexander Philipov, George Mason University 

Top-Down or Bottom-Up: Commonality in Disagreement and Asset Pricing  
Jialin Yu, Columbia University
Discussant: Kathy Yuan, University of Michigan

Catering Through Nominal Share Prices  
Malcolm Baker, Harvard University
Robin Greenwood, Harvard University
Jeffrey Wurgler, New York University
Discussant: Harrison Hong, Princeton University

Accounting: Audit Research  T200
Chair:  Hollis A. Skaife, University of Wisconsin-Madison

Tax Consulting and Reported Weaknesses in Internal Control [SLIDES
Randal Elder, Syracuse University
David D. Harris, Syracuse University
Jian Zhou, SUNY at Binghamton
Discussant:  Arianna S. Pinello, Georgia State University

Incentives for Auditor Collusion: An Auditor-Agent Game 
Abigail Brown, University of Technology, Sidney
Discussant:  Bharat Sarath, Baruch College

On the Conditions that Audit Risk Increases with more Information [SLIDES]
Yasuhiro Ohta, Keio University
Discussant:  Bharat Sarath, Baruch College

Saturday, October 27, 2007                  3:00 - 3:30                 Coffee Break       M1-100 KMC Commons    


Session 6                          3:30 - 5:00


Finance: Asset Prices:  Empirical   KMC 2-60
Chair: Charles A. Trzcinka, Indiana University

Dispersion in Analysts’ Earnings Forecasts and Credit Rating  [SLIDES]
Doron Avramov, University of Maryland
Tarun Chordia, Emory University
Gergana Jostova, George Washington University
Alexander Philipov, George Mason University
Discussant: Claudia Moise, Case western University [

The Term Structure of Bond Market Liquidity [SLIDES]
Ruslan Goyenko, McGill University
Avanidhar Subrahmanyam, University of California at Los Angeles
Andrey Ukhov, Indiana University
Discussant:Stijn Van Nieuwerburgh, New York University 

The Effects of Derivatives on Firm Risk and Value  
Söhnke M. Bartram, Lancaster University
Gregory W. Brown, University of North Carolina
Jennifer Conrad, University of North Carolina
Discussant: Tracy Yue Wang, University of Minnesota

Accounting:  Analysts and Capital Markets  T200
Chair:  Lawrence D. Brown, Georgia State University

Analyst Recommendations and Mergers: Do Analysts Matter? 
David A. Becher, University of Pennsylvania
Jennifer L. Juergens, Arizona State University
Discussant:  Michael B. Clement, University of Texas-Austin

The Effect of Ability, Independence, and Investor Sentiment on Analysts’ Propensity
to Use Their Own earnings Forecasts in Stock Recommendations

Bin Ke, Pennsylvania State University
Yong Yu, University of Texas-Austin
Discussant:  Michael B. Clement, University of Texas-Austin

The Effect of Trading Commissions on Analysts’ Forecast Bias [SLIDES]
Anne Beyer, Stanford University
Ilan Guttman, Stanford University
Discussant:  Michael B. Clement, University of Texas-Austin

5:00                 Conference Adjournment