For any of you who subscribe to the lovely journal "The Accounting Review", if you pick up Volume 83, No. 3 May 2008 you will find that Steve has his first published paper entitled "Fair Value Accounting for Liabilities and Own Credit Risk".
I remember way back at Stanford before David was even born Steve working way into the night on this particular project. Before I married an academic I had no idea how much time went into one paper. The paper has been back and forth from the editors several times and Steve and his co-writers have done lots of tweeking but now all the hard work has paid off.
Hooray, Congratulations Steve!
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9 comments:
I can't say we susbscribe to that journal, but that's awesome. We've experienced that back-and-forth process with editors with David's research and my thesis. It's a joy! Way to go, Steve!
I accessed the article through BYU (if anyone wants a PDF keepsake of the article, let me know). Here's the abstract:
ABSTRACT: We find that equity returns associated with credit risk changes are attenuated
by the debt value effect of the credit risk changes, as Merton (1974) predicts.
We find that the relation between credit risk changes and equity returns is significantly
less negative for firms with more debt—controlling for asset value changes, credit risk
increases (decreases) are associated with equity value increases (decreases). This result
obtains across credit risk levels. The relation is associated with changes in both
expected cash flows and systematic risk, as reflected in analyst earnings forecasts and
equity cost of capital. By inverting the Merton (1974) model, we provide descriptive
evidence that if unrecognized debt value changes were recognized in income, but not
unrecognized asset value changes, most credit upgrade (downgrade) firms would recognize
lower (higher) income. These potentially counterintuitive income effects primarily
are attributable to incomplete recognition of contemporaneous asset value changes.
However, for a substantial majority of downgrade firms we find that recognized asset
write-downs exceed unrecognized gains from debt value decreases. This mitigates
concerns that income effects from recognizing changes in debt values would be anomalous
for such firms.
All I can say is huh? But, also congratulations as I know what a big deal a publication in a good journal is in the academic world.
Congratulations Dr. Stubben! That is a big deal. Woo-hoo!
If I understand the abstract, having money is good, not having money isn't as good.
I'd better get a copy of the full article to verify!
Congratulations Steve for one of many more to come I'm sure.
Ya-HOO! A pub! Congratulations, Steve -- Chris just got one dinged -- bummer! Congrats to you, a huge accomplishment, indeed!
Congrats!! Believe me, I understand how much work that is!I'm hoping to be there someday. That is a great accomplisment!
Congratulations Steve!! I can only imagine how much work goes into publishing a paper! Nice work!
Congratulations! Kevin was just telling me (and our neighbor) about this tonight - IMPRESSIVE and even more impressive that it was after a year like this! YOU GUYS ARE AMAZING!!!
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