My current research focuses on the interplay between reputation and decision-making under uncertainty. My job market paper studies how reputation affects managers' decision to herd. The question is important because it helps with our understanding of (1) why decision-makers herd, (2) among who and under what conditions herding can lead to inferior performance, and (3) how to reduce inefficient herding and improve decision quality. Understanding the link between reputation and herding is relevant in new venture funding, technology investment, and adoption of managerial practices. My broad research interests include reputation, awards, and entrepreneurship.
Job Market Paper: "Reputation and Herding" (Link to the Paper)
I study when managers may knowingly make poor decisions. Specifically, I posit “reputational herding", whereby decision makers herd to avoid being uniquely wrong even when they know this will make them less likely to be correct. I model this phenomenon formally and show that decision makers will be less likely to herd when they have high reputations and when experts have less correlated information. The model provides predictions that distinguish between learning and reputational herding. The theory is tested in the context of sell-side stock analysts. A difference-in-differences estimation compares award-winning analysts and runners-up with similar ability to identify the causal impact of a change in reputation on the likelihood of herding. The results suggest that analysts herd less after an increase in reputation, which is consistent with the reputational herding mechanism.
Paper Under Review
“Revisiting the Categorical Imperative: Securities Analysts and the Illegitimacy Discount: Zuckerman (1999)" (with Brent Goldfarb , Revise and resubmit at Strategic Management Journal )
Work In Progress
“To Explore or Exploit? The Effects of Winning Awards on Sell-Side Equity Research” (Dissertation Essay 2)
In data analysis.
“Reputation and Entrepreneurship: An Examination of Award-Winning Analysts' Careers” (Dissertation Essay 3)
In data collection.
“The Durability and Fragility of Reputation”(with Kalinda Ukanwa)
Model developed. Collecting empirical evidence.
“Booms, Busts, and Research Lab Productivity” (with Waverly Ding and Chris Liu)
“External Ratings and Mutual Fund Herding” (with Jinming Xue)
In data collection.