Research and Publications

Babson College encourages and supports a variety of thought leadership and research activities to increase the public visibility and academic reputation of the College and its faculty, regionally, nationally, and internationally.

Below is a sampling of published research, working papers and areas of research being pursued by the Babson College finance division faculty.

Davies, R.J., Hevert, K.T. (2020). Stay-out adjustments and multi-year regulatory rate plans. The Quarterly Review of Economics and Finance, 76, 105-114.

Goldstein, M.A., Hotchkiss, E.S. (2020). Providing Liquidity in an Illiquid Market: Dealer Behavior in U.S. Corporate Bonds. Journal of Financial Economics, 135(1), 16-40.

Bessembinder, H., Hao, J., Zheng, K. (2020). Liquidity Provision Contracts and Market Quality: Evidence from the New York Stock Exchange. Review of Financial Studies, 33(1), 44–74.

Stein, L.C.D., Yannelis, C. (2020). Financial Inclusion, Human Capital, and Wealth Accumulation: Evidence from the Freedman’s Savings Bank. Review of Financial Studies, forthcoming.

Bradley, D., Clarke, J., Zeng, L. (2020). The Speed of Information and the Sell-Side Research Industry. Journal of Financial and Quantitative Analysis, 55(5), 1467-1490.

Barardehi, Y.H., Bernhardt, D., Davies, R.J. (2019). Trade-Time Measures of Liquidity. Review of Financial Studies 32(1), 126–179.

Goldstein, M.A., Hotchkiss, S.E., Pedersen, D.J., (2019). Secondary Market Liquidity and Primary Market Pricing of Corporate Bonds. Journal of Risk and Financial Management 12(2), 86.

Goldstein, M.A., McCarthy, J., Orlov, A.G. (2019). The Core, Periphery, and Beyond: Stock Market Comovements among EU and Non‐EU Countries. The Financial Review 54, 5-56.

Hasanhodzic, J., Kotlikoff, L. (2019). Valuing Government Obligations When Markets Are Incomplete. Journal of Money, Credit, and Banking, 51(7), 1815-1855.

Hasanhodzic, J., Lo, A.W., Viola, E. (2019). What Do Humans Perceive in Asset Returns? Journal of Portfolio Management 45(4), 49-60.

Hasanhodzic, J., Lo, A.W. (2019). On Black's Leverage Effect in Firms With No Leverage. Journal of Portfolio Management, 46(1), 102-122.

Krigman, L., Rivolta, M. (2019). Can non-CEO inside directors add value? Evidence from unplanned CEO turnovers. Review of Accounting and Finance, 18(3), 456-482

Stein, L.C.D., Zhao, H. (2019). Independent Executive Directors: How Distraction Affects Their Advisory and Monitoring Roles. Journal of Corporate Finance 56, 199–223.

Décaire, P., Gilje, E.P., Taillard, J.P. (2019). Real Option Exercise: Empirical Evidence. Review of Financial Studies, forthcoming.

Chava, S., Hsu, A., Zeng, L. (2019). Does History Repeat Itself? Business Cycle and Industry Returns. Journal of Monetary Economics, forthcoming.

Arbetter, T., Chang, A., Fetterer, F., Goldstein, M.A., Lynch, A.H., Zsom, A., (2018). The step-like evolution of Arctic open water. Scientific Reports 8(16902), 1-9.

Behr, P., Kisgen, D., Taillard, J.P. (2018). Did Government Regulations Lead to Inflated Credit Ratings. Management Science 64(3), 983-1476.

Goldstein, M.A., Haghdadi, N., Ma, S., MacGill, I., Pitman, A.J., (2017). Pricing the urban cooling benefits of solar panel deployment in Sydney, Australia. Scientific Reports 7(43938).

Goldstein, M.A., Parr, C., Sturm, M. (2017). Water and life from snow: A trillion dollar science question. Water Resources Research 53(5), 3534–3544.

Bowen, D.E., Fresard, L., Taillard, J.P. (2017). What's your identification strategy? Innovation in Corporate Finance Research. Management Science 63(8), 2529-2548.

Gilje, E.P., Taillard, J.P. (2017). Does Hedging Affect Firm Value? Evidence from a Natural Experiment. Review of Financial Studies 31(12), 4083-4132.

Krigman, L., and Jeffus, W. (2016). IPO Pricing as a Function of your Investment Banks’ Past Mistakes: The Case of Facebook. Journal of Corporate Finance. 38, 335-344.

Gilje, E.P., Taillard, J.P. (2016). Do Private Firms Invest Differently than Public Firms? Taking Cues from the Natural Gas Industry. Journal of Finance 71(4), 1733-1778.

Potter, M.E., Schwarz, C.G. (2016). Revisiting Mutual Fund Portfolio Disclosure. Review of Financial Studies 29, (12), 3519-3544.

Atanasov, V., Davies, R.J., Merrick, J.J. (2015). Financial intermediaries in the midst of market manipulation: Did they protect the fool or help the knave? Journal of Corporate Finance 34, 210-234.

Bradley, D., Kim, I., Krigman, L.A., (2015). Top VC IPO Underpricing. Journal of Corporate Finance. 31, 186-202.

Chartier, F.A., Edmunds, J.C. (2015). Latin American Economic Growth: Disparate Paths, Creditable Accomplishments. Global Journal of Emerging Market Economies. 7(1), 21-27.

Bessembinder, Hao, J., H., Zheng, K. (2015). Market Making Contracts, Firm Value, and the IPO Decision. Journal of Finance 70, 1997-2028.

Gao, P., Hao, J., Kalcheva, I., Ma, T. (2015). Short Sales and the Weekend Effect - Evidence from Hong Kong. Journal of Financial Markets 26, 85-102.

Goldstein, M.A. (2015). Circuit Breakers, Trading Collars, and Volatility Transmission Across Markets: Evidence from NYSE Rule 80A. The Financial Review 50(3), 459–479.

Goldstein, M.A., Goyal, A., Lucey, B.M., Muckley, C.B. (2015). The Global Preference for Dividends in Declining Markets. The Financial Review 50(4), 575-609.

Harris, L., Kyle, A.S., Sirri, E.R. (2015). Statement of the Financial Economists Roundtable, April 2015: The Structure of Trading in Bond Markets. Financial Analysts Journal 71(6), 4.

Professor Ryan Davies

Utilities, such as electric, gas, and water companies, are natural monopolies. To ensure that these utilities do not overcharge for their services, they must have their prices, or tariff rates, approved by a utility commission through a regulatory rate case process. Rate cases are expensive and time-consuming and create uncertainty for all parties involved. Consequently, there has been a recent trend to have multi-year regulatory rate plans, which incorporate a rate freeze or rate case moratorium. Under such a plan, it is not obvious how to adjust the allowed return on equity for the longer “stay-out” period.