Mendoza Directory

Faculty & Research

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Bill D McDonald

Thomas A. and James J. Bruder Professor of Administrative Leadership


Bill McDonald has been at the University of Notre Dame since 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. His work at Schwab involved implementing online financial planning software, including a patented portfolio optimization package. He has consulted for major investment banks, brokerages, and stock exchanges and served as an expert witness. His research is predominantly in capital markets and he has more than 30 publications spanning leading journals in finance, accounting, management science, and economics. He is currently serving concurrent appointments at Notre Dame as Professor of Finance and Faculty Liaison for Information Technology and is the Thomas A. and James J. Bruder Chair in Administrative Leadership.




  • Applied Investment Management
  • Investment Theory
  • Corporate Investments



"Measuring Readability in Financial Disclosures," (with Timothy J Loughran, ), To appear in Journal of Finance, forthcoming.

"Regulation and Financial Disclosure: The Impact of Plain English," (with Timothy J Loughran, ), To appear in Journal of Regulatory Economics, 45, February, 2014, 94-113.

"IPO First-Day Returns, Offer Price Revisions, Volatility, and Form S-1 Language," (with Timothy J Loughran, ), To appear in Journal of Financial Economics, 109, August, 2013, 307-326.

"Barron's Red Flags: Do They Actually Work?" (with Timothy J Loughran, ),  Journal of Behavioral Finance, 12, 2011, 90-97.

"When Is a Liability Not a Liability? Textual Analysis, Dictionaries, and 10-Ks," (with Timothy J Loughran, ),  Journal of Finance, 66, February, 2011, 67-97.

"Commonality in Codes of Ethics," (with Margaret Forster, Timothy J Loughran, ),  Journal of Business Ethics, 90, November, 2009, 129-139.

"A Wolf in Sheep's Clothing: The Use of Ethics-Related Terms in 10-K Reports," (with Timothy J Loughran, Hayong Yun),  Journal of Business Ethics, 89, May, 2009, 39-49.

"What's Different Among Banks?" (with Thomas F. Cosimano),  Journal of Monetary Economics, 41, 1998, 57-70.

"Multivariate Tests of Asset Pricing: The Comparative Power of Alternative Statistics," (with John Affleck-Graves),  Journal of Financial and Quantitative Analysis, 25, 1990, 163-185.

"Predicting Stock Returns in an Efficient Market," (with Ronald J. Balvers, Thomas F. Cosimano),  Journal of Finance, 45, 1990, 1109-1128.

"Additional Evidence on the Nature of Size-Related Anomalies," (with Robert E. Miller),  Journal of Economics and Business, 41, 1989, 61-68.

"Nonnormalities and Tests of Asset Pricing Theories," (with John Affleck-Graves),  Journal of Finance, 44, 1989, 889-908.

"An Analysis of Nonlinearities, Heteroscedasticity, and Functional Form in the Market Model," (with Cheng-Few Lee),  Journal of Business & Economic Statistics, 6, 1988, 505-509.

"Underpricing of New Issues and the Choice of Auditor as a Signal of Investment Banker Reputation," (with Ronald J. Balvers, Robert E. Miller),  The Accounting Review, 63, 1988, 605-622.

"Event Studies and Systems Methods: Some Additional Evidence,"  Journal of Financial and Quantitative Analysis, 22, 1987, 494-504.

"A Reexamination of Economies of Scale in Banking Using a Generalized Functional Form," (with Bernard J. Kilbride, Robert E. Miller),  Journal of Money, Credit and Banking, 18, 1986, 519-526.

"Income Averaging Benefits from Income Growth: The Gradual Elimination of Inequity," (with Michael H. Morris),  Public Finance Quarterly, 1986, 199-208.

"On the Informational Role of Treasury Bill Futures," (with Shantaram P. Hegde),  The Journal of Futures Markets, 6, 1986, 629-643.

"Relevance of Reported Inflation-Adjusted Earnings Measures in the Valuation Process," (with Michael H. Morris),  Journal of Business Research, 14, 1986, 411-422.

"Capitalization of Interest Costs: Security Price Reaction to SFAS No. 34 Disclosures," (with Michael H. Morris, William D. Nichols),  Review of Business and Economic Research, 20, 1985, 78-88.

"Estimating Market Model Betas: A Comparison of Random Coefficient Methods and Their Ability to Correctly Identify Random Variation,"  Management Science, 31, 1985, 1403-1408.

"Making Sense Out of Unstable Alphas and Betas,"  Journal of Portfolio Management, 11, 1985, 19-22.

"The Functional Specification of Financial Ratios," (with Michael H. Morris),  Accounting and Business Research, 59, 1985, 223-238.

"Income Growth and Income Averaging: An Analysis of Eligibility and Resultant Tax Savings," (with Michael H. Morris),  The Tax Executive, 36, 1984, 432-446.

"Nonstationarity of Beta and Tests of Market Efficiency," (with William D. Nichols),  Journal of Financial Research, 7, 1984, 315-322.

"The Statistical Validity of the Ratio Method in Financial Analysis: An Empirical Examination," (with Michael H. Morris),  Journal of Business Finance and Accounting, 11, 1984, 89-97.

"An Empirical Examination of the Preference Structure for the Distribution of Earnings,"  Journal of Economics & Business, 35, 1983, 441-451.

"Asset Pricing and Financial Reporting with Changing Prices," (with Michael H. Morris),  Journal of Business Finance and Accounting, 9, 1983, 441-451.

"Beta Nonstationarities: An Empirical Test of Stochastic Forms,"  The Financial Review, 18, 1983, 175-183.

"Beta Nonstationarity and the Use of the Chen and Lee Estimator: A Note,"  Journal of Finance, 38, 1983, 1005-1009.

"Functional Forms and the Capital Asset Pricing Model,"  Journal of Financial and Quantitative Analysis, 18, 1983, 318-330.

"Stock Splits and Market Anomalies," (with William D. Nichols),  The Financial Review, 18, 1983, 237-256.

"The Existence of Heteroscedasticity and Its Effects on Estimates of the Market Model Parameters," (with Michael H Morris),  Journal of Financial Research, 9, 1983, 115-126.

"Job Satisfaction and Life Satisfaction: An Empirical Evaluation of Their Relationship," (with Thomas L. Keon),  Human Relations, 35, 1982, 167-180.


Tim Loughran, "Measuring Readability in Financial Disclosures."