Mendoza School of Business

Bill McDonald

  • Biography
  • Background
  • Publications

Bill McDonald joined the Notre Dame faculty after receiving his Ph.D. from Arizona State University in 1979. He worked in a vice president position at the Schwab Center for Investment Research in San Francisco during the Internet boom/bust. At Schwab, he developed online financial planning software, including a patented portfolio optimization package. He has consulted for major investment banks, brokerages, and stock exchanges, and has served as an expert witness.

Professor McDonald’s research is predominantly in capital markets and he has more than 50 publications spanning leading journals in finance, accounting, management science, and economics. His research has been cited in The Wall Street Journal, The London Times, The New Yorker, Barron’s, Quartz, and other popular press outlets. The textual analysis technology he developed along with Tim Loughran for their 2011 Journal of Finance paper is used by Google, Fidelity, Citadel, Dow Jones, S&P Global, and WRDS.

Teaching in the area of investments, McDonald received a Kaneb Teaching Award in both 1999 and 2003, and the Joyce Award for Excellence in Undergraduate Teaching in 2015. The Applied Investment Management course he taught for over a decade manages more than $25 million of Notre Dame’s endowment. More recently he designed and taught a course entitled Python for Finance and a course on Crypto Assets. He retired in 2022 and now lives in Scottsdale, Arizona while continuing to do research and consulting.

Ph D, Arizona State University
MBA, Arizona State University
BS, Central Missouri State University

Areas of Expertise
Textual analysis, Financial econometrics
Capital Markets

"Measuring Firm Complexity", (With Timothy Loughran), Journal of Financial and Quantitative Analysis - Accepted (awaiting publication)

"Management Disclosure of Risk Factors and COVID-19", (With Timothy Loughran), Financial Innovation - Accepted (awaiting publication)

"How Have Corporate Codes of Ethics Responded to an Era of Incresased Scrutiny?", (With Timothy Loughran, James Otteson), Journal of Business Ethics, 2022

"Deviations from Time Priority on the NYSE", (With Robert Battalio, Robert Jennings), Journal of Financial Markets, 53, 2021

"Textual Analysis in Finance", (With Timothy Loughran), Annual Review of Financial Economics, 2020, 2020

"Designing a Global Digital Currency", (With Ronald Balvers), Journal of International Money and Finance, 111, 2020

"Assimilation of Oil News into Prices", (With Timothy Loughran, Ioannis Pragidis), International Review of Financial Analysis, 63, 2019

"Using Annual Report Sentiment as a Proxy for Financial Distress in U.S. Banks", (With Priyank Gandhi, Timothy Loughran), Journal of Behavioral Finance, 2019

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

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

"Financial Disclosure and Customer Satisfaction: Do Companies Talking the Talk Actually Walk the Walk?", (With John Gaski, Ron Balvers), Journal of Business Ethics, 138, 2016

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

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

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

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

"Measuring Readability in Financial Disclosures", (With Timothy Loughran), Journal of Finance, 69, 2014

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

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

"Barron's Red Flags: Do They Actually Work?", (With Timothy Loughran), Journal of Behavioral Finance, 12, 2011

"When Is a Liability Not a Liability? Textual Analysis, Dictionaries, and 10-Ks", (With Timothy Loughran), Journal of Finance, 66, 2011

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

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