Mendoza School of Business


Timothy Loughran

C.R. Smith Professor of Finance
Finance
 574-631-8432
  245 Mendoza College of Business
  • Biography
  • Background
  • Publications
  • Awards

Tim Loughran joined the Notre Dame faculty in the fall of 1999. His academic research has concentrated mostly on equity investing/textual analysis, and his work has been published widely in the top journals of the field, including the Journal of Finance, Journal of Financial Economics, Review of Financial Studies, Journal of Accounting Research, and Journal of Financial and Quantitative Analysis. Research areas explored by Loughran include the long-run performance of new issues, payment form in corporate acquisitions, value versus growth investment strategies, and the use of textual analysis to gauge the tone of financial documents. His work has been featured in the New York Times, the Wall Street Journal, Forbes, the Economist, and Business Week.

Loughran taught previously at the University of Iowa. He received a bachelor of arts degree and a bachelor of science degree from the University of Illinois at Urbana-Champaign, an MBA degree from Indiana University, and a doctoral degree from the University of Illinois at Urbana-Champaign. At Notre Dame, Loughran received a Kaneb Teaching Award in 2004 and was named the Mendoza College of Business’s Outstanding Undergraduate Teacher of the year in 2005. In 2006 he won the Outstanding Teacher Award for the Executive MBA Chicago Program, he received a Joyce Award for Excellence in Undergraduate Teaching in 2008, and he won the MSF Outstanding Faculty in 2017.

Education
BA, University of Illinois at Urbana-Champaign
MBA, Indiana University
Ph D, University of Illinois at Urbana-Champaign

Areas of Expertise
Behavioral Finance
Textual Analysis

Editorial Boards
Associate Editor & Editorial Board
Financial Analysts Journal
January 1, 2016 - December 31, 2018

Associate Editor & Editorial Board
Journal of Financial Economics
January 1, 2006 - December 31, 2018

Associate Editor & Editorial Board
Review of Quantitative Finance and Accounting
January 1, 2002 - December 31, 2018

Associate Editor & Editorial Board
Journal of Behavioral Finance
January 1, 2000 - December 31, 2018

Associate Editor & Editorial Board
Journal of Financial Research
January 1, 2006 - December 31, 2017

Associate Editor & Editorial Board
Journal of Corporate Finance
January 1, 2002 - December 31, 2017

Associate Editor & Editorial Board
Journal of Financial Economics
January 1, 2006 - December 31, 2016

Associate Editor & Editorial Board
Journal of Financial Research
January 1, 2006 - December 31, 2016

Associate Editor & Editorial Board
Journal of Corporate Finance
January 1, 2002 - December 31, 2016

Associate Editor & Editorial Board
Review of Quantitative Finance and Accounting
January 1, 2002 - December 31, 2016

Associate Editor & Editorial Board
Journal of Behavioral Finance
January 1, 2000 - December 31, 2016

Associate Editor & Editorial Board
International Journal of Portfolio Analysis and Management
January 1, 2011 - December 31, 2014

Associate Editor & Editorial Board
The Open Ethics Journal
January 1, 2008 - December 31, 2013

Associate Editor & Editorial Board
Journal of Banking and Finance
January 1, 2006 - December 31, 2007

Teaching
Equity Valuation
Security Analysis
"Linguistic Tone and the Small Trader: Measurement Issues, Regulatory Implications, and Directions for Future Research", Accounting, Organizations and Society, 68-69, 2018

"Using Annual Report Sentiment as a Proxy for Financial Distress in U.S. Banks", (With Priyank Gandhi, Bill McDonald) - Accepted (awaiting publication)

"The Use of EDGAR Filings by Investors", (With Bill McDonald), Journal of Behavioral Finance, 18, 2017

"Textual Analysis in Accounting and Finance: A Survey", (With Bill McDonald), Journal of Accounting Research, 54, 2016

"Trust, but Verify: MD&A Language and the Role of Trust in Corporate Culture", (With Robert Audi, Bill McDonald), Journal of Business Ethics, 139, 2016

"Old Glass Ceilings are Hard to Break: Gender Usage Trends in Annual Reports", (With Bill McDonald), Studies in Communication Sciences, 15, 2015

"The Use of Word Lists in Textual Analysis", (With Bill McDonald), Journal of Behavioral Finance, 16, 2015

"Using 10-K Text to Gauge Financial Constraints", (With Andriy Bodnaruk, Bill McDonald), Journal of Financial and Quantitative Analysis, 50, 2015

"Measuring Readability in Financial Disclosures", (With Bill McDonald), Journal of Finance, 69, 2014

"Regulation and Financial Disclosure: The Impact of Plain English", (With Bill McDonald), Journal of Regulatory Economics, 45, 2014

"IPO First-Day Returns, Offer Price Revisions, Volatility, and Form S-1 Language", (With Bill McDonald), Journal of Financial Economics, 109, 2013

"Barron’s Red Flags: Do They Actually Work?", (With Bill McDonald), Journal of Behavioral Finance, 2011

"New Evidence on the Relation between the Enterprise Multiple and Average Stock Returns", (With Jay Wellman), Journal of Financial and Quantitative Analysis, 2011

"The Impact of Venture Capital Investments on Public Firm Stock Performance", (With Sophie Shive), Journal of Behavioral Finance, 2011

"When is a Liability not a Liability? Textual Analysis, Dictionaries, and 10 Ks", (With Bill McDonald), Journal of Finance, 2011

"Who Benefited from the Disclosure Mandates of the 1964 Securities Acts Amendments?", (With Robert Battalio, Brian Hatch), Journal of Corporate Finance, 2011

"A Wolf in Sheep’s Clothing: The Use of Ethics-Related Terms in 10-K Reports", (With Bill McDonald, Hayong Yun), Journal of Business Ethics, 89, 2009

"Commonality in Codes of Ethics", (With Margaret Forster, Bill McDonald), Journal of Business Ethics, 90, 2009

"Does Payment for Order Flow to Your Broker Help or Hurt You?", (With Robert Battalio), Journal of Business Ethics, 80, 2008

"The Impact of Firm Location on Equity Issuance", Financial Management, 37, 2008

"Geographic Dissemination of Information", Journal of Corporate Finance, 13, 2007

"The Geography of S&P 500 Stock Returns", (With David Barker), Journal of Behavioral Finance, 8, 2007

"Mutual Fund Incubation and the Role of the Securities and Exchange Commission", (With Carl Ackermann), Journal of Business Ethics, 70, 2007

"Do Investors Capture the Value Premium?", (With Todd Houge), Financial Management, 35, 2006

"Outstanding Teacher Award, MSF Program", 2017

"Winner of the 2014 Hillcrest Behavioral Finance Award", Hillcrest Asset Management, 2014

"Joyce Award for Excellence in Undergraduate Teaching", University of Notre Dame , 2008

"Outstanding Teacher Award, Executive MBA Chicago", 2006