March 29, 2017

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Assoc. Prof. Terrence Hendershott
Fast Forward: High-speed trading debunked

High-frequency trading (HFT) drew national attention earlier this year from author Michael Lewis’ latest book, Flash Boys. But Finance Professor Terrence Hendershott has been studying its effects since 2005, when investor-specific data on algorithmic trading transactions started to become available. Hendershott weighs in on whether high-frequency trading is good, bad, or simply inevitable. Watch video. (07/09/2014)

Asst. Prof. Ming Hsu
Your Genes Affect Your Betting Behavior

Asst. Prof. Ming Hsu, Haas Marketing Group, studies neuroeconomics. His recent research shows that betting decisions in a simple competitive game are influenced by the specific variants of dopamine-regulating genes in a person’s brain. “This study shows that genes influence complex social behavior, in this case strategic behavior,” said Hsu, study leader Ming Hsu, “We now have some clues about the neural mechanisms through which our genes affect behavior. (06/16/2014)

Prof. Paul Gertler
Study Shows Early Childhood Stimulation Intervention in Jamaica Yields Better Pay in Adulthood

In the May 30, 2014 edition of the journal, Science, researchers find that early childhood development programs are particularly important for disadvantaged children in Jamaica and can greatly impact an individual’s ability to earn more money as an adult. The 20-year study, “Labor Market Returns to an Early Childhood Stimulation Intervention in Jamaica” by Professor Paul Gertler tracks the employment status of adults who once lived in the poor Kingston neighborhood as toddlers in the 1980’s. (05/29/2014)

Asst, Prof. Clayton Critcher
Study Discovers the Downside of African-American Success Stories

African-Americans such as Brown University President Ruth Simmons, Nobel Laureate Toni Morrison, and of course President Barack Obama have reached the pinnacle of success in historically white domains. But a new study by marketing Asst. Prof. Clayton Critcher finds there is a downside to African-American success stories: these positive examples prompt white Americans to think less successful African-Americans simply need to apply more effort to achieve their own success.  (05/01/2014)

Leanne ten Brinke, Ph.D.
The unconscious mind can detect a liar--even when the conscious mind fails

When detecting deceit, your unconscious instincts may be more accurate than conscious thought while making judgments about others, according to research co-authored by Leanne ten Brinke, a postdoctoral fellow at the University of California, Berkeley’s Haas School of Business. (03/27/2014)

Ming D. Leung
Tricks of the Trade: Study Suggests How Freelancers Can Land More Jobs

As an increasing number of freelancers depend on the virtual workplace, how can they make themselves more attractive to potential employers? New research by Ming D. Leung suggests freelancers who demonstrate work commitment through an incremental career path, by moving between similar — but not identical — types of jobs, are the most likely to be hired.  (02/03/2014)

Assoc. Prof. Steven Tadelis
Study Finds Paid Search Ads Don't Always Pay Off

Businesses spend billions to reach customers through online advertising but just how effective are paid search ads? Using data from eBay, economist Steven Tadelis at UC Berkeley’s Haas School of Business compared whether consumers are more likely to click on paid ads than on free, generic search results and found that advertisers may not be getting their money’s worth.  (01/16/2014)

The Politics of Precaution by David Vogel
Prof. David Vogel receives second book award for The Politics of Precaution

The journal Governance has awarded Professor David Vogel the 2013 Charles H. Levine Memorial Book Prize for his book The Politics of Precaution: Regulating Health, Safety, and Environmental Risks in Europe and the United States (Princeton University Press, 2012). (09/17/2013)

Asst. Prof. Clayton Critcher
Truth or Consequences? The Negative Results of Concealing Who You Really Are on the Job

Most people know that hiding something from others can cause internal angst, but new research by marketing Asst. Prof. Clayton Critcher suggests the consequences go far beyond emotional strife: Having to conceal information about oneself (e.g., sexual orientation) during an interaction disrupts one’s intellectual acuity, physical strength, and interpersonal grace—skills and abilities that are critical to workplace success. (09/17/2013)

Assoc. Prof. Don Moore
Are You Hiring the Wrong Person?

Assoc. Prof. Don Moore finds employment managers tend to ignore the context of past performance. “We would like to believe that the people who are making judgments that affect our lives—where we get hired or what school we are admitted to—have the wisdom to understand who we are, what we are capable of, what shortcomings aren’t our fault,” says Moore, “But our research shows people evaluating us have a great deal of trouble considering situational factors or context.”  (07/25/2013)

Asst. Prof. Yaniv Konchitchki
Making a Case for Transparent Corporate Accounting Information

A new study by accounting professor Yaniv Konchitchki finds greater transparency in firms’ earnings has a positive effect on the bottom line. "Cost of Capital and Earnings Transparency" (published in the Journal of Accounting and Economics, April-May 2013) establishes that the transparency of a firm’s accounting earnings is a telling indicator of the company’s cost of capital and thus its valuation, according to Konchitchki. (06/12/2013)

Prof. Martin Lettau
Finance Prof. Martin Lettau Honored with 2013 AQR Insight Award

Finance Professor Martin Lettau has received the 2013 AQR Insight Award for his research about how an extension of the widely taught capital asset pricing model can explain returns of equity, commodity, sovereign bonds, and currencies and offer a unified risk view of these investments. The winning paper, “Conditional Currency Risk Premia,” is co-authored with Haas alumnus Matteo Maggiori, Ph.D. 12, and Michael Weber, a current Haas PhD student. (05/24/2013)

Prof. Paul Gertler
Bonuses for Doctors Pay Off for Patients

Everyone knows money talks. Prof. Paul Gertler found this to be the case in Rwanda, where, in conjunction with the national government, he evaluated a new and novel pay-for- performance model for the health care industry designed to increase access to high quality maternal and child health services.He outlines his findings in his paper, “Using Performance Incentives to Improve Medical Care Productivity and Health Outcomes,” co-authored by Christel Vermeersch, a World Bank senior economist. (05/13/2013)

Asst. Prof. Panos Patatoukas
Corporate Accounting Earnings Data Relevant for Determining Value of the Aggregate Stock Market

While teaching a course on financial information analysis, Asst. Prof. Panos Patatoukas observed that capital market participants and policy makers are increasingly turning to accounting earnings data from corporate financial reports for hints regarding the prospects of the aggregate stock market. This observation indicated that, at the aggregate level, accounting earnings data could be relevant for gauging the value of the entire stock market. (04/01/2013)

Prof. Ross Levine
Study Finds Successful Entrepreneurs Share a Common History of Getting in Trouble as Teenagers

Independence. Creativity. Money. Those are the benefits associated with successful entrepreneurs such as Steve Jobs and Mark Zuckerberg. But is being an entrepreneur really more lucrative than working for a salary? And who is best cut out to succeed? A new study by Professor Ross Levine of the Haas Economic Analysis and Policy Group answers both of these questions.  (02/19/2013)

Prof. Patricia Dechow
Investor Beware: Stock Analysts’ Rounded Forecasts Are More Inaccurate and Upwardly Biased

In an era when a stock can take a beating if earnings fall a penny short of analysts' predictions, what factors influence whether forecasters seek precision to the penny or round off -- and how should their choice affect investors? Accounting Professor Patricia Dechow found that rounded forecasts are not only significantly more inaccurate than those that strive for penny-precision but also significantly more upwardly biased. The sharpest differences in both respects occur in companies with annual earnings per share of less than $10. (01/22/2013)

Prof. Ulrike Malmendier
Finance Professor Ulrike Malmendier Receives 2013 Fischer Black Prize

Berkeley-Haas Finance Professor Ulrike Malmendier has been awarded the 2013 Fischer Black Prize from the American Finance Association, which honors the top finance scholar under the age of 40 years old. The prize was established in 2002 in honor of Fischer Black, who was a co-inventor, along with Myron Scholes, of the Nobel-prize winning Black-Scholes-Merton Options-Pricing Model. (01/16/2013)

Prof. David Teece
Haas Professors Teece, Gârleanu, Morse Honored for Excellence in Research and Scholarly Service

Prof. David Teece, the Thomas W. Tusher Professor in Global Business and faculty director of the Institute for Business Innovation, received the Royal Honour of Companion of the New Zealand Order of Merit.  Associate Prof. Nicolae Gârleanu , the Paul H. Stephens Chair in Applied Investment Analysis, is the winner of the Smith Breeden Prize from the Journal of Finance. Assistant Prof. Adair Morse, a visiting professor in the Haas Finance Group, is the recipient of the Journal of Finance’s Brattle Prize.   (01/16/2013)

Visiting Prof. Adair Morse
Tax Evasion in Greece: Billions Earned by High Income Professionals Go Untaxed

Wide-scale tax evasion in Greece accounts for 28 billion Euros in unreported taxable income –just among the self-employed, according to a new study, “Tax Evasion Across Industries: Soft Credit Evidence from Greece,”  by  Adair Morse,  a visiting assistant professor of finance at Berkeley-Haas.   (12/05/2012)

Kellie McElhaney
More Female Board Directors Add Up to Improved Sustainability Performance

As a corporate responsibility consultant, Kellie McElhaney publicly criticized Apple’s recent appointment of another man to an already all-male executive team. McElhaney’s new research goes one step further, indicating that the number of women on a corporate board correlates with a firm’s sustainability performance.  (11/14/2012)

Asst. Prof. Noam Yuchtman
Criminal Punishment and Politics: Elected Judges Take Tougher Stance Prior to Elections

The last few months leading up to an election can be a critical, political game changer. One right or one wrong move can quickly change a candidate’s standing at the polls. New research by Noam Yuchtman suggests that judges who are elected, rather than appointed, respond to this political pressure by handing down more severe criminal sentences – as much as 10 percent longer –in the last three months before an election compared with the beginning of their terms. (10/17/2012)

Prof. Laura Kray
Study Finds Flirting Can Pay Off for Women in Negotiations

When Madeleine Albright became the first female U.S. Secretary of State, she led high-level negotiations between mostly male foreign government leaders. In 2009, comedian Bill Maher asked Albright if she ever flirted on the job and she replied, “I did, I did.” Flirtatiousness, female friendliness, or the more diplomatic description “feminine charm” is an effective way for women to gain negotiating mileage, according to a new study by Haas School Professor Laura Kray. (10/08/2012)

Prof. Jennifer Chatman
My Research: Organizational Culture Matters on the Bottom Line: Evidence from the High-Tech Industry

Prof. Jennifer Chatman writes about her recent research on organization culture. She found that strong cultures are not necessarily a disadvantage in dynamic environments and furthermore, that firms with strong cultures actually perform better financially, growing more over time, in economically turbulent periods but only if they intensely hold a cultural norm of adaptability. Her study also found that firms with strong cultures that are adaptive also have better reputations. (09/20/2012)

Back to Berkeley: Prof. Carl Shapiro Returns from Presidential Adviser Post

A familiar face returned to the Berkeley-Haas campus this fall. Haas School economics professor Carl Shapiro, the Transamerica Chair in Business Strategy, served in two high-ranking positions in the Obama Administration.  From March 2009 through February 2011, Shapiro served as chief economist in the Antitrust Division of the U.S. Department of Justice (DOJ). He then moved to the White House, where he advised President Obama as a member of the President’s Council of Economic Advisers (CEA).  (09/06/2012)

Why are people overconfident so often? It’s all about social status

Researchers have long known that people are very frequently overconfident, although overconfidence can have detrimental effects on performance and decision-making. So why is overconfidence still so pervasive? The lure of social status promotes overconfidence, says Haas School Associate Professor Cameron Anderson, who co-authored a new study, “A Status-Enhancement Account of Overconfidence,” forthcoming in the Journal of Personality and Social Psychology. (08/13/2012)

The Advantages of Being First

How people make choices depends on many factors, but a study by Dana R. Carney, assistant professor of management, finds people consistently prefer the options that come first: first in line, first college to offer acceptance, first salad on the menu – first is considered best. The paper, “First is Best,” is published in PLoS ONE.  (07/02/2012)

My Research: David Levine Finds Evidence Proving OSHA is Effective for Employees and Employers

Prof. David Levine writes about his new study, “Randomized Government Safety Inspections Reduce Worker Injuries with No Detectable Job Loss”: OSHA has a long history of being attacked from all sides. While some criticize it for being too lenient, others routinely refer to it as a job-killer whose regulations stifle job creation, increase labor costs, and erode America’s competitiveness. But don’t be fooled. OSHA workplace inspections protect the health and safety of America’s workers. We now have the data to prove it. (06/06/2012)

Prof. David Vogel
Role Reversal: New Book by Prof. Vogel Illustrates How the U.S. Lost Its Lead in Risk Regulation to Europe

Air pollution, climate change, food additives, pesticides, cosmetic safety, and electronic product hazards all pose global consumer and environmental risks, but the regulatory controls to manage them vary by country and by region. In recent decades, Europe has taken the lead over the US in comprehensively managing such risks, according to a new book by Berkeley-Haas Professor David Vogel. (05/18/2012)

Ming Hsu
Neuroeconomics: Studying Brain Responses Gives Marketers Increased Ability to Predict How People Make Decisions

Magnetic resonance imaging (MRI) is typically used by medical professionals to visualize the internal structures of the human body. By using MRI to study the brain, Ming Hsu, assistant professor of marketing, found a method to characterize how the different regions of the brain function in concert to enable people to anticipate and respond to competitors' behavior.  (04/23/2012)

Less is More: The Unexpected Value for Suppliers That Have Few Major Customers

Walmart may serve millions of customers, but suppliers who are lucky enough to have Walmart as their customer have one more reason to smile—in the spirit of the chain store’s famous “happy face” logo. According to supply chain research by Panos Patatoukas, assistant professor of accounting, suppliers with few but major customers enjoy higher performance—demonstrated by bottom line profitability rates and stock market valuations—than firms with a less concentrated customer base. (03/27/2012)