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David Hirshleifer

David Hirshleifer

Distinguished Professor, Paul Merage Chair in Business Growth

SB2 436

dhirshle@uci.edu    Personal website  

Education

PhD, University of Chicago
MA, University of Chicago
BA, UC Los Angeles

Research Interest

Psychology, Social interactions, and Markets

Investments

Corporate finance

Risk management


David Hirshleifer joined the finance faculty at The Paul Merage School of Business 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, social transmission of investment ideas and behavior, and the effect of emotions on stock prices. He has also conducted research on risk management, determinants of futures prices, social interactions and markets, fads and fashions in economic decisions, and how psychological bias affects political and regulatory decisions.

He has published more than 60 papers, several of which have won research awards, including the Smith Breeden Award for outstanding paper in the Journal of Finance. He is co-author of Price Theory and Applications: Decisions, Markets, and Information, now in its seventh edition.  

Hirshleifer is President Elect of the American Finance Association. He has served as Executive Editor of the Review of Financial Studies, and as associate editor of several other finance, economics, and strategy journals.

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.

 

News & Honors

  • Finalist, AQR Insight Award 2018
  • Merage Chair in Business Growth
  • President Elect, American Finance Association
  • Vice President, American Finance Association, 2017
  • Executive Editor, Review of Financial Studies, 2011-14
  • Research Associate, National Bureau of Economic Research
  • Senior Fellow, Asian Bureau of Finance and Economic Research
  • Editor, Review of Financial Studies, 1994-7
  • Associate Editor, Journal of Finance, 2003-11
  • 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
  • Director, American Finance Association, 2000-2002.
  • Director, Western Finance Association, 2005-
  • Associate, Behavioral and Brain Sciences, 2004-

Selected Publications

Research

Books

  • Price Theory and Applications: Decisions, Markets, and Information, 7th Edition, Jack Hirshleifer, Amihai Glazer, and David Hirshleifer, Cambridge University Press, 2005.
  • Price Theory and Applications, 6th Edition, Prentice Hall, 1998, Jack Hirshleifer and David Hirshleifer.


Selected Papers

  • “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.
  • “The Psychological Attraction Approach to Accounting and Disclosure Policy,” David Hirshleifer and Siew Hong Teoh, Contemporary Accounting Research,  26(4), Winter 2009, 1067-90.
  • “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.
  • “Seasonal Patterns of Futures Hedging and the Resolution of Output Uncertainty,” Journal of Economic Theory, 3(2), April (1991):304-27.
  • “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.                               
  • “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. Most requested article in the Journal of Monetary Economics (reported 2003)
  • “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]
  • “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,  November 2008, 14(5) pp. 856-874. [lead article]
  • “Accruals, Cash Flows, and Aggregate Stock Returns,” David Hirshleifer, Kewei Hou, and Siew Hong Teoh, Journal of Financial Economics, March (2009), 91(3):389-406.
  • “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,  Accounting Review, (2008), 83(6):1521-1150.
  • “Promotion Tournaments and Capital Rationing,” Bing Han, David Hirshleifer and John Persons
  • “Driven to Distraction: Extraneous Events and Underreaction to Earnings News,” David Hirshleifer, Sonya Lim, and Siew Hong Teoh
  • “Investor Psychology and Tests of Factor Pricing Models,” Kent Daniel, David Hirshleifer and Avanidhar Subrahmanyam
  • “Investor Overconfidence and the Forward Discount Puzzle,” Bing Han, David Hirshleifer and Tracy Yue Wang
  • “Can Individual Investors Beat the Market?,” Joshua Coval, David Hirshleifer, and Tyler Shumway
  • “Limited Investor Attention and Stock Market Misreactions to Accounting Information,”David Hirshleifer and Siew Hong Teoh
  • “Do Short-Sellers Arbitrage the Accrual Anomaly?” David Hirshleifer, Siew Hong Teoh, and Jiewei Yu
  • “The Accrual Anomaly: Risk or Mispricing?” David Hirshleifer, Kewei Hou, and Siew Hong Teoh
  • “Firm and Managerial Incentives to Manipulate the Timing of Project Resolution,” Tarun Chordia, David Hirshleifer, and Sonya Lim
  • “A Theory of Costly Sequential Bidding,” Kent Daniel and David Hirshleifer.
  • “Disclosure to an Audience with Limited Attention,” David Hirshleifer, Sonya Lim and Siew Hong Teoh
  • “Taking the Road Less Traveled: Does Conversation Eradicate Pernicious Cascades?,” H. Henry Cao and David Hirshleifer 
  • “Fear of the Unknown: Familiarity and Economic Decisions,” H. Henry Cao, Bing Han, David Hirshleifer, and Harold H. Zhang, forthcoming, Review of Finance.
  • “Misvaluation and Corporate Investment,” Ming Dong, David Hirshleifer, and Siew Hong Teoh.
  • “Commonality in Misvaluation, Equity Financing, and the Cross-Section of Stock Returns,” David Hirshleifer and Danling Jiang, forthcoming, Review of Financial Studies.
  • “Prospect Theory and Reference Point Adaptation: Evidence from the US, China, and Korea,” Hal Arkes, David Hirshleifer, Danling Jiang, and Sonya Lim, in press, Organizational Behavior and Human Decision Processes.
  • “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), (2009):128-42. [article]
  • “Promotion Tournaments and Capital Rationing,” Bing Han, David Hirshleifer and John Persons, Review of Financial Studies, 2009, 22(1):219-255.


Other Selected Publications

  • “Thought and Behavior Contagion in Capital Markets,” David Hirshleifer and Siew Hong Teoh, Ch. 1 of Handbook of Financial Markets: Dynamics and Evolution, Klaus Reiner Schenk-Hoppé and Thorsten Hens, Ed., Handbooks in Finance series (William Ziemba, ed.), Elsevier/North-Holland (2009):1-56.
  • “Informational Cascades and Rational Herding:  An Annotated Bibliography and Resource Reference.” Available at http://www.info-cascades.info/, Sushil Bikhchandani, David Hirshleifer and Ivo Welch

Links

http://www.info-cascades.info/

  • “Informational Cascades and Rational Herding:  An Annotated Bibliography and Resource Reference.” Sushil Bikhchandani, David Hirshleifer and Ivo Welch             

http://www.dictionaryofeconomics.com/article?id=pde2008_I000103

  • “information cascades,” Sushil Bikhchandani, David Hirshleifer and Ivo Welch, 2008, The New Palgrave Dictionary of Economics, Second Edition, Steven N. Durlauf and Lawrence E. Blume, Editors, Palgrave Macmillan/U.K.; The New Palgrave Dictionary of Economics Online. Palgrave Macmillan.

http://tierneylab.blogs.nytimes.com/2007/10/09/how-the-low-fat-low-fact-cascade-just-keeps-rolling-along/

  • “How the Low-Fat, Low-Fact Cascade Just Keeps Rolling Along,” John Tierney, www.nytimes.com

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