Richard Mendenhall

Professor Emeritus

Richard  Mendenhall

Contact Information


Rick Mendenhall is in his third term as chair of the Finance Department. He has studied the impact on stock prices of events such as earnings announcements, company 10-Q and 10-K filings, securities analysts’ forecasts, and S&P 500 Index composition changes. His studies have been discussed in many media outlets including the Wall Street Journal, the New York Times, Business Week, Forbes, CNN Headline News, and National Public Radio. Mendenhall graduated from United States Naval Academy and served as an officer in the Navy for five years. During that time he graduated from the Naval Nuclear Power School and served aboard a nuclear submarine. He later earned M.B.A. and Ph.D. degrees in Finance from Indiana University. He serves as a member of the university’s 403(b) Investment Committee and London Global Gateway Faculty Advisory Committee.

Areas of Expertise

Stock Market Anomalies

Stock Market Response to Information

Characteristics of Analysts' Forecasts

Market Efficiency

Stock Market Indexes


Ph D, Indiana University

MBA, Indiana University

BS, United States Naval Academy


"Who, if Anyone, Reacts to Accrual Information?", (with Robert Battalio, Alina Lerman, Joshua Livnat), Journal of Accounting and Economics, 53, 2012.

"Post-Earnings Announcement Drift: Bounds on Profitability for the Marginal Investor", (with Robert Battalio), Financial Review, 46, 2011.

"Double Surprise into Higher Future Returns: The Post-Earnings-Announcement Drift for Firms Covered by Analysts", (with Alina Lerman, Joshua Livnat), Financial Analysts Journal, 63, 2007.

"Comparing the Post-Earnings-Announcement Drift for Surprises Calculated from Analyst and Time Series Forecasts", (with Joshua Livnat), Journal of Accounting Research, 44, 2006.

"Earnings expectations, investor trade size, and anomalous returns around earnings announcements", (with Robert Battalio), Journal of Financial Economics, 77, 2005.

"Arbitrage Risk and Post-Earnings-Announcement Drift", Journal of Business, 77, 2004.

"How Naive is the Market's Use of Firm-Specific Earnings Information?", Journal of Accounting Research, 40, 2002.

"Option Listing and the Stock-Price Response to Earnings", (with Donald Fehrs), Journal of Accounting and Economics, 27, 1999.

"New Evidence on the Stock Price Effects Associated with Changes in the S&P 500 Index", (with Anthony Lynch), Journal of Business, 70, 1997.

"The Relation Between the Value Line Enigma and Post-Earnings Announcement Drift", (with John Affleck-Graves), Journal of Financial Economics, 31, 1992.

"Evidence on the Possible Underweighting of Earnings Information", Journal of Accounting Research, 29, 1991.

"Forecasts of Earnings Per Share: Possible Sources of Analyst Superiority and Bias", (with John Affleck-Graves, Larry Davis), Contemporary Accounting Research, 6, 1990.

"Bad News and Differential Market Reactions to Announcements of Earlier Versus Fourth Quarter Earnings", (with William Nichols), Journal of Accounting Research, 1988.