17th Annual Conference on Financial Economics and Accounting
November 17-18, 2006
J. Mack Robinson College of Business
Aderhold Learning Center (ALC) – Georgia State University

Finance: Executive Compensation - ALC 005
Chair: David Yermack, New York University

Super Lawyers and New CEO Pay: An Empirical Investigation
Shiva Rajgopal, University of Washington
Daniel Taylor, Stanford University
Mohan Venkatachalam, Duke University
Discussant: Stuart Gillan, Texas Tech University

Selling Hopes: Managerial Compensation and Overstatement of Growth Options
Efraim Benmelech, Harvard University
Eugene Kandel, Hebrew University
Pietro Veronesi, University of Chicago
Discussant: Simi Kedia, Rutgers University

Serial CEOs’ Incentives and the Shape of Managerial Contracts
Mariassunta Giannetti, Stockholm School of Economics, CEPR and ECGI
Discussant: Augustin Landier, New York University

Accounting: Earnings Management - ALC 024
Chair: Eli Bartov, New York University

Executive Stock Options, Missed Earnings Targets and Earnings Management: Evidence from Book-Tax Differences
Mary L. McAnally, Texas A&M University
Anup Srivastava, Texas A&M University
Connie D. Weaver, Texas A&M University
Discussant: Tzachi Zach, Washington University – St. Louis

Earnings Management and Accounting Income Aggregation
John Jacob, University of Colorado at Boulder
Bjorn N. Jorgensen, Columbia University
Discussant: Shailendra Pandit, Ohio State University

Do "At-Risk" Firms with Good Prospects Manage Accruals to Avoid Delisting?
Sunny Yang, University of Texas at Austin
Discussant: Daniel A. Cohen, University of Southern California

Finance: Asset Pricing I - ALC 005
Chair: Gurdip Bakshi, University of Maryland

A Tale of Two Anomalies: The Implication of Investor Attention for Price and Earnings Momentum
Kewei Hou, Ohio State University
Lin Peng, Baruch College
Wei Xiong , Princeton University and NBER
Discussant: Tim Simin, Pennsylvania State University

The Price of Sin: The Effects of Social Norms on Markets
Harrison Hong, Princeton University
Marcin Kacperczyk, University of British Columbia
Discussant: Andrey Ukhov, Indiana University

Everything is Relative: The Disposition Effect and Households’ Stock Trades
Zoran Ivkovic, University of Illinois at Urbana-Champaign
Neil D. Pearson, University of Illinois at Urbana-Champaign
Scott Weisbenner, University of Illinois at Urbana-Champaign and NBER
Discussant: Bing Han, University of Texas-Austin

Accounting: Valuation - ALC 024
Chair: John Hand, University of North Carolina

Fundamentals-Based Risk Measurement in Valuation
Alexander Nekrasov, University of Minnesota
Pervin K. Shroff, University of Minnesota
Discussant: Brian Rountree, Rice University

Earnings as Lagging Economic Indicators of Market Return
William M. Cready, University of Texas at Dallas
Umit Gurun, University of Texas at Dallas
Discussant: Brian Rountree, Rice University

Effect of Analysts’ Optimism on Estimates of the Expected Rate of Return Implied by Earnings Forecasts
Peter D. Easton, University of Notre Dame
Gregory A. Sommers, Southern Methodist University
Discussant: Brian Rountree, Rice University

Finance: Corporate Governance - ALC 005
Chair: Ronald Masulis, Vanderbilt University

Governance and Conservatism in Investment Decisions
Kose John, New York University
Diana Knyazeva, New York University
Discussant: Anup Agrawal, University of Alabama

A Lobbying Approach to Evaluating the Sarbanes-Oxley Act of 2002
Yael V. Hochberg, Northwestern University
Paola Sapienza, Northwestern University, NBER and CEPR
Annette Vissing-Jørgensen, Northwestern University and NBER
Discussant: Cong Wang, Vanderbilt University

Board of Directors’ Responsiveness to Shareholders: Evidence from Majority-Vote Shareholder Proposals
Yonca Ertimur, Duke University
Fabrizio Ferri, Harvard Business School
Stephen R. Stubben, University of North Carolina
Discussant: Fei Xie, San Diego State University

Accounting: Auditors - ALC 024
Chair: Galen R. Sevcik, Georgia State University

International Evidence on the Association between Excess Auditor Remuneration and the Implied Required Rate of Return
Ole-Kristian Hope, University of Toronto
Tony Kang, Singapore Management University
Wayne Thomas, University of Oklahoma
Yong Keun Yoo, Korea University
Discussant: Paul K. Chaney, Vanderbilt University

Internal Control Weaknesses and Client Risk Management
Randal Elder, Syracuse University
Yan Zhang, SUNY-Binghamton
Jian Zhou, SUNY-Binghamton
Nan Zhou, SUNY-Binghamton
Discussant: Weili Ge, University of Washington

Are Off-Balance Sheet Obligations Associated with Audit Fees?
Gopal V. Krishnan, George Mason University
Partha Sengupta, George Mason University
Discussant: Brian W. Mayhew, University of Wisconsin

Finance: Asset Pricing II - ALC 005
Chair: David Musto, University of Pennsylvania

Asset Pricing and Mispricing
Michael J. Brennan, University of California – Los Angeles
Ashley Wang, University of California – Irvine
Discussant: Anthony Lynch, New York University

How Active is Your Fund Manager? A New Measure That Predicts Performance
Martijn Cremers, Yale University
Antti Petajisto, Yale University
Discussant: Randolph Cohen, Harvard University

Return Decomposition
Long Chen, Michigan State University
Xinlei Zhao, Kent State University
Discussant: Dana Kiku, University of Pennsylvania

Accounting: Fundamentals - ALC 024
Moderator: M. Daniel Beneish, Indiana University

Operating Risk, Information Risk, and Cost of Capital
Michelle Liu, Pennsylvania State University
Peter Wysocki, Massachusetts Institute of Technology
Discussant: D. Craig Nichols, Cornell University

Is Openness Penalized? Stock Returns around Earnings Warnings
Jennifer W. Tucker, University of Florida
Discussant: D. Craig Nichols, Cornell University

Taxable Income as a Performance Measure: The Effects of Tax Planning and Earnings Quality
Benjamin C. Ayres, University of Georgia
John (Xuefeng) Jiang, Michigan State University
Stacie Laplante, University of Georgia
Discussant: D. Craig Nichols, Cornell University

Finance: Corporate Finance - ALC 005
Chair: Kose John, New York University

Market Structure, Internal Capital Markets, and the Boundaries of the Firm
Richmond D. Mathews, Duke University
David T. Robinson, Duke University
Discussant: Naveen Khanna, Michigan State University

Market Conditions and Venture Capitalist Experience in Start-Up Financing
Yrjo Koskinen, Boston University and CEPR
Michael J. Rebello, Tulane University
Jun Wang, Baruch College
Discussant: Merih Sevilir, University of North Carolina

Favoritism of Markets in Capital Allocation
Mariassunta Giannetti, Stockholm School of Economics, CEPR & ECGI
Xiaoyun Yu, Indiana University
Discussant: Dalida Kadyrzhanova, University of Maryland

Accounting: Corporate Governance/Contracting - ALC 024
Chair: John Core, University of Pennsylvania

Insider Trading Before Accounting Scandals
Anup Agrawal, University of Alabama
R. Thomas Cooper, University of Alabama
Discussant: Sudipta Basu, Emory University

Performance Pricing Provisions in Bank Debt Contracts: Optimal Performance Measure Choice
Ryan Ball, University of North Carolina-Chapel Hill
Robert Bushman, University of North Carolina-Chapel Hill
Florin P. Vasvari, London Business School
Discussant: Sudipta Basu, Emory University

Agency Problems in Family Firms: Evidence from CEO Turnover and Firm Valuation
Xia Chen, University of British Columbia
Qiang Cheng, University of British Columbia
Zhonglan Dai, University of Texas at Dallas
Discussant: Sudipta Basu, Emory University

Finance: Asset Pricing III - ALC 005
Chair: Kerry Back, Texas A&M University

Aggregate Technology Shock and Market Return Predictability
Paul Po-Hsuan Hsu, Columbia University
Discussant: Ralitska Petkova, Case Western Reserve University and University of Texas

Home Bias and High Turnover: Dynamic Portfolio Choice with Complete Markets
Victoria Hnatkovska, Georgetown University and University of British Columbia
Discussant: Stavros Panageas, University of Pennsylvania

Financial Leverage Does Not Cause the Leverage Effect
A. Cevdt Aydemir, Lehman Brothers
Michael Gallmeyer, Texas A&M University
Burton Hollifield, Carnegie Mellon University
Discussant: David Chapman, Boston College

Accounting: Analysts and Capital Markets - ALC 024
Moderator: Michael B. Clement, University of Texas

Getting Out Early: An Analysis of Market Making Activity at the Recommending Analyst's Firm
Jennifer L. Juergens, Arizona State University
Laura Lindsey, Arizona State University
Discussant: Cristi Gleason, University of Iowa

Probability of Meeting/Beating Analysts’ Forecasts and Market Reaction to Earnings Announcements
Mei Cheng, University of Arizona
Discussant: Marcus Caylor, University of South Carolina

Management Forecast, Disclosure Quality, and Market Efficiency
Jeffrey Ng, University of Pennsylvania
Irem Tuna, University of Pennsylvania
Rodrigo Verdi, Massachusetts Institute of
Discussant: Praveen Sinha, Chapman University

Jayant Kale, Georgia State University: Finance Program Chair, CFEA17
Lawrence D. Brown, Georgia State University: Accounting Program Chair, CFEA17

CFEA17 is sponsored by the Finance and Accounting Faculties and the Dean's Office of the Robinson College of Business and the Georgia State University Research Foundation.

The program committee members for the CFEA17 meeting are:

Vikas Agarwal, Georgia State University
Kerry Back, Texas A&M University
Eli Bartov, New York University
Gurdip Bakshi, University of Maryland
M. Daniel Beneish, Indiana University
Lawrence D. Brown, Georgia State University
Lei (Tony) Chen, Georgia State University
Michael B. Clement, University of Texas
John Core, University of Pennsylvania
John Hand, University of North Carolina
J. Artur Hugon, Georgia State University
Kose John, New York University
Jayant Kale, Georgia State University
Omesh Kini, Georgia State University
Yen Lee, Georgia State University
Reza Mahani, Georgia State University
Ronald Masulis, Vanderbilt University
David Musto, University of Pennsylvania
Siva Nathan, Georgia State University
Arianna Pinello, Georgia State University
Harley (Chip) Ryan, Jr, Georgia State University
K. R. Subramanyam, University of Southern California
Isabel Tkatch, Georgia State University
David Yermack, New York University

Each submitted paper was evaluated by at least two program committee members.

CFEA is a consortium of eight universities that host the conference:
(Each university has one Accounting and one Finance representative on the Executive Committee)

Georgia State University (Lawrence Brown, Jayant Kale)
Indiana University (Walt Blacconiere, Charles Trzcinka)
New York University (Joshua Ronen, Kose John)
Rutgers University (Bikki Jaggi, Cheng Few Lee)
University of Maryland (Oliver Kim, Lemma Senbet)
University of North Carolina (John Hand, Jennifer Conrad)
University of Southern California (Randy Beatty, Yasushi Hamao)
University of Texas at Austin (Eric Hirst, Ehud Ronn)

Ex-Officio Executive Committee Member: Frank C. Jen (SUNY-Buffalo)