David Hirshleifer joined the Merage finance faculty in July 2006 after serving as the Kurtz Chair in Finance at Ohio State University's Fisher College of Business, the Waterman Professor of Finance at the University of Michigan Business School, and as a tenured faculty member at the UCLA Anderson School of Management.

His expertise includes corporate finance, investments, and behavioral finance. Some of his recent research has been on psychology in firms and markets, and how emotions affect stock prices and managerial decision biases. He has also conducted research on risk management, determinants of futures prices, the effects of social interactions on markets, fads and fashions in economic decisions, and how psychological bias affects political and regulatory decisions.

Hirshleifer is co-author of Price Theory and Applications: Decisions, Markets, and Information, now in its seventh edition. He has published more than 40 papers, several of which have won research awards, including the Smith Breeden Award for outstanding paper in the Journal of Finance.

He has served as editor of the Review of Financial Studies, as associate editor of several other finance, economics, and strategy journals, and as director of the American Finance Association and the Western Finance Association.

Hirshleifer has presented papers and participated in discussions at many seminars and national and international conferences. His research has been profiled in U.S.and international newspapers, magazines, and broadcast media.

• Merage Chair in Business Growth

• Editor, Review of Financial Studies, 1994-7.
• Associate Editor, Journal of Finance, 2003-
• Associate Editor, Review of Financial Studies, 1990-4, 1997-9
• Associate Editor, Journal of Financial Intermediation, volumes III -
• Associate Editor, Journal of Corporate Finance, 1994–
• Coeditor, Journal of Economics and Management Strategy, 1993–2003
• Editorial Board, Journal of Money and Finance, (journal of Korea Money and Finance Association)
• Advisory Editor, Economics Letters, 2002-3
• Special Issue Editor, Journal of Financial Intermediation, 2000 Amsterdam Symposium, “The Blurring of Boundaries between Financial Institutions and Markets and Its Implications for Corporate Finance”

• Advisory Editor, SSRN Journal in Behavioral and Experimental Finance, 2004-

• Keynote address, European Financial Management Association 2007 Annual Meeting, Vienna, Austria: “Psychological Bias as a Driver of Financial Regulation”

• Director, American Finance Association, 2000-2002.

• Director, Western Finance Association, 2005-

• Associate, Behavioral and Brain Sciences, 2004-

• National Bureau of Economic Research, Behavioral Finance Working Group

• co-Principal Investigators Hal Arkes and David Hirshleifer, National Science Foundation (NSF) 0339178, “Reference Point Adaptation and Mental Accounting:  Dynamic Extensions of Prospect Theory.” Collaborators Danling Jiang and Sonya Lim.

Selected Papers  

• “Residual Risk, Trading Costs and Commodity Futures Risk Premia, Review of Financial Studies, 1(2), Summer (1988):173-93.
• “Risk, Futures Pricing, and the Organization of Production in Commodity Markets,” Journal of Political Economy, 96(6), December (1988):1206-1220.
• “Cooperation in a Repeated Prisoners’ Dilemma with Ostracism,” David Hirshleifer and Eric Rasmusen, Journal of Economic Behavior and Organization, 12(1), August (1989):87-106.
•  “Hedging Pressure and Futures Price Movements in a General Equilibrium Model,” Econometrica, 58(2), March (1990):411-428.                        

1. Reprinted in The Theory of Futures Markets, Weller, P. (Ed.), Blackwell Publishers, Oxford, UK and Cambridge MA, Chapter 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.
•  “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.                                 
• “Security Analysis and Trading Patterns when Some Investors Receive Information before Others,” David Hirshleifer and Avanidhar Subrahmanyam and Sheridan Titman, Journal of Finance, 49(5), December (1994):1665-1698. 
• “Investor Psychology and Security Market Under- and Over-  Reactions” Kent Daniel, David Hirshleifer and Avanidhar Subrahmanyam, Journal of Finance, 53(6), December, (1998):1839-85. [lead article]

1. 1997 American Association of Individual Investors Award for Best Paper on Investments at the Western Finance Association Meeting.
2. 1998 Best Paper Award for the 1998 National Taiwan University International Conference on Finance, Taiwan.
3. 1999 Smith-Breeden Award for outstanding paper in the Journal of Finance.
4. Reprinted as ch.17 in Behavioral Finance I, Vol. 10 in The International Library of Critical Writings in Financial Economics, Hersh Shefrin, ed., Edward Elgar Publishers, 2002.
5. Reprinted in Advances in Behavioral Finance II, Richard Thaler editor, Princeton University Press, June 2005.

• “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):151-70.

• “Overconfidence, Arbitrage, and Equilibrium Asset Pricing,” Kent Daniel, David Hirshleifer and Avanidhar Subrahmanyam, Journal of Finance, 56(3), June, (2001):921-965.

1. Nominated for Smith-Breeden Award for outstanding paper in the 2001 Journal of Finance

• “Investor Psychology and Asset Pricing,” Journal of Finance, 56(4), August (2001):1533-1598.

• “Investor Psychology in Capital Markets: Evidence and Policy Implications,” Kent Daniel, David Hirshleifer and Siew Hong Teoh, Journal of Monetary Economics 49(1), (2002):139-209.    

1. Reprinted in The Psychology of World Equity Markets, Werner De Bondt, editor, Edward Elgar Publishing Ltd., July 2005.
2. Most requested article in the Journal of Monetary Economics (reported 2003)

• “An Economic Approach to the Psychology of Change: Amnesia, Inertia, and Impulsiveness,” David Hirshleifer and Ivo Welch, Journal of Economics and Management Strategy, 11(3), Fall (2002):379-421. [lead article]

• “Herding and Cascading in Capital Markets: A Review and Synthesis,” David Hirshleifer and Siew Hong Teoh, European Financial Management, 9(1), March, (2003):25-66.

• “Good Day Sunshine: Stock Returns and the Weather,” David Hirshleifer and Tyler Shumway, Journal of Finance, June, (2003):1009-1032.

1. Nominated for Smith-Breeden Award for outstanding paper in the 2003 Journal of Finance

• “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.

• “Do Investors Overvalue Firms with Bloated Balance Sheets?,” David Hirshleifer, Kewei Hou, Siew Hong Teoh and Yinglei Zhang, Journal of Accounting and Economics, 38(1-3), December, 2004, 297-331.

• “Do Tender Offers Create Value? New Methods and Evidence” Sanjai Bhagat, Ming Dong, David Hirshleifer, and Robert Noah, Journal of Financial Economics, 76(1), (2005):3-60. [lead article]

1. Best Corporate Finance Paper award, Northern Finance Association meetings, 2002

• “Does Investor Misvaluation Drive the Takeover Market?” Ming Dong, David Hirshleifer, Scott Richardson, and Siew Hong Teoh, Journal of Finance, April 2006, 61(2), 725-762.

• “Feedback and the Success of Irrational Traders,” David Hirshleifer, Avanidhar Subrahmanyam, and Sheridan Titman, Journal of Financial Economics, August, 2006, 81(2), 311-338.

• “Reference Point Adaptation: Tests in the Domain of Security Trading,” Hal Arkes, David Hirshleifer, Danling Jiang, and Sonya Lim, Organizational Behavior and Human Decision Processes, January 2008, 105(1), 67-81.

• “Psychological Bias as a Driver of Financial Regulation,” European Financial Management, forthcoming. [lead article]

• “Accruals, Cash Flows, and Aggregate Stock Returns,” David Hirshleifer, Kewei Hou, and Siew Hong Teoh, forthcoming, Journal of Financial Economics.

• “Do Individual Investors Drive Post-Earnings Announcement Drift? Direct Evidence from Personal Trades,” David Hirshleifer, James N. Myers, Linda A. Myers and Siew Hong Teoh, forthcoming, Accounting Review, November 2008.

• “Thought and Behavior Contagion in Capital Markets,” David Hirshleifer and Siew Hong Teoh, in Handbook of Financial Markets: Dynamics and Evolution, Klaus Reiner Schenk-Hoppé and Thorsten Hens, Ed., volume in the Handbooks in Finance series (William Ziemba, ed.), Elsevier/North-Holland (to be published in 2009).