Publications of Dong Lou

Journal of Financial Economics, 134 (1), 192-213.

We study the relation between the presence of superstar firms and college students’ major choice. Occurrences of superstar performers in an industry...

Review of Financial Studies, 29 (12): 3354-3393.

We decompose the abnormal profits associated with well-known patterns in the cross-section of expected returns into their overnight and intraday...

We explore a subtle but important mechanism through which firms manipulate their information environments. We show that firms control information flow...

Portfolios often trade at substantial discounts relative to the sum of their components (e.g., closed-end funds, conglomerates). We propose a simple...

Historically, low-beta stocks deliver high average returns and low risk relative to high-beta stocks, offering a potentially profitable investment...

Portfolios often trade at substantial discounts relative to the sum of their components (e.g., closed-end funds, conglomerates). We propose a simple...

Review of Financial Studies, 27 (6). pp. 1797-1829. 

Review of Financial Studies, 26 (8). pp. 1891-1912.

We propose a novel measure of arbitrage activity to examine whether arbitrageurs can have a destabilizing effect in the stock market. We apply our...

We explore a new mechanism through which investors take correlated shortcuts. Specifically, we exploit a regulatory provision governing firm...

The conventional view of market timing suggests an unambiguous, negative relation between equity misvaluation and the equity share in new issues—that...

Review of Financial Studies, 25 (12). pp. 3457-3489. 

Journal of Financial Economics, 104 (2). pp. 383-400.

We show that Treasury security prices in the secondary market decrease significantly before subsequent auctions and recover shortly after. This price...