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Dodonova, Carroll Win Awards for Finance and Accounting Research

Two Tippie College of Business faculty members were recently honored for their research, receiving best paper awards at two prestigious conferences.

Anna Dodonova, a visiting assistant professor of finance, received the Best Ph.D. Paper Award at the Northern Finance Association's annual meeting Sept 27-29, in Banff, Alberta.

The Northern Finance Association's annual meeting provided a forum where finance academics, professionals, and students from throughout North America and the world heard and presented the latest research in finance. Dodonova received $1,000 for the Best Ph.D. Paper Award, which was sponsored by Pearson Education Canada.

Dodonova authored the winning paper, "Applications of Regret Theory to Asset Pricing," while at the University of Michigan. The paper presents a theoretical model of asset pricing that analyzes how the behavior of stock returns is affected by the presence of regret averse investors on the market. The model predicts that the market will overreact to good or bad news, resulting in an excess volatility of stock returns. It also helps to analyze how an improvement of stock market accessibility for non-professional traders affects the predictability of stock returns.

Tom Carroll, a lecturer in the Tippie College of Business, won the prize for the best paper at the 2002 Journal of Accounting, Auditing, and Finance/KPMG Conference earlier this year. The paper, "The Reliability of Fair Value vs. Historical Cost Information: Evidence from Closed-End Mutual Funds", was co-authored with Tom Linsmeier and Kathy Petroni of Michigan State University.

The research examines the valuation-relevance of fair value accounting. Based on a sample of 143 closed-end mutual funds during 1982-1997, Carroll and his colleagues found that fair values are relevant, even after controlling for historical costs. Exploiting the diversity of securities held by closed-end funds, they demonstrate the relevance of fair values for stocks and bonds traded in both active and thin markets.

To view the paper, see www.stern.nyu.edu/ross/Linsmeier.pdf.


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