Mendoza Directory

Faculty & Research

Photo of TimothyJ.Loughran

Timothy J. Loughran

C. R. Smith II Professor of Finance


Tim Loughran joined the Notre Dame faculty in the fall of 1999. His academic research has concentrated mostly on equity investing, 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, 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 how a firm’s location affects its liquidity and capital structure. 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, and he received a Joyce Award for Excellence in Undergraduate Teaching in 2008.




  • Equity Valuation
  • Security Analysis



"IPO First-Day Returns, Offer Price Revisions, Volatility, and Form S-1 Language ," (with Bill D McDonald),  Journal of Financial Economics, 109, 2013, 307-326.

"Measuring Readability in Financial Disclosures," (with Bill D McDonald), To appear in Journal of Finance, 2013.

"Regulation and Financial Disclosure: The Impact of Plain English," (with Bill D McDonald), To appear in Journal of Regulatory Economics, 2013.

"Barron’s Red Flags: Do They Actually Work?" (with Bill D 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 A Shive),  Journal of Behavioral Finance, 2011.

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

"Who Benefited from the Disclosure Mandates of the 1964 Securities Acts Amendments?" (with Robert H 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 D McDonald, Hayong Yun),  Journal of Business Ethics, 89, 2009, 39-49.

"Commonality in Codes of Ethics," (with Margaret Forster, Bill D McDonald),  Journal of Business Ethics, 90, 2009, 129-139.

"Does Payment for Order Flow to Your Broker Help or Hurt You?" (with Robert H Battalio, ),  Journal of Business Ethics, 80, 2008, 37-44.

"The Impact of Firm Location on Equity Issuance,"  Financial Management, 37, 2008, 1-21.

"Geographic Dissemination of Information,"  Journal of Corporate Finance, 13, December, 2007, 675-694.

"The Geography of S&P 500 Stock Returns," (with David Barker, ),  Journal of Behavioral Finance, 8, 2007, 177-190.

"Mutual Fund Incubation and the Role of the Securities and Exchange Commission," (with Carl B Ackermann),  Journal of Business Ethics, 70, January (1st Quarter/Winter), 2007, 33-37.

"Do Investors Capture the Value Premium?" (with Todd Houge),  Financial Management, 35, 2006, 5-19.

"Divergence of Opinion Surrounding Extreme Events," (with Jennifer Marietta-Westberg),  European Financial Management, 11, 2005, 579-601.

"Liquidity: Urban Versus Rural Firms," (with Paul Schultz),  Journal of Financial Economics, 78, 2005, 314-374.

"NASD Rule 2110 and the VA Linux IPO,"  Journal of Business Ethics, 62, 2005, 141-146.

"The Timing Ability of Newly Listed NYSE Firms, 1926-1962," (with Jennifer Marietta-Westberg),  Journal of Behavioral Finance, 6, 2005, 44-56.

"Discounting and Clustering in Seasoned Equity Offering Prices," (with Simona Mola),  Journal of Financial and Quantitative Analysis, 39, 2004, 23-Jan.

"Weather, Stock Returns, and the Impact of Localized Trading Behavior," (with Paul Schultz),  Journal of Financial and Quantitative Analysis, 39, 2004, 343-364.

"Why Has IPO Underpricing Changed Over Time?" (with Jay Ritter),  Financial Management, 33, 2004, May-37.

"Why Don't Issuers Get Upset about Leaving Money on the Table in IPOs?" (with Jay R. Ritter),  Review of Financial Studies, 15, 2002, 413-443.

"Divergence of Opinion, Uncertainty, and the Quality of Initial Public Offerings," (with Todd Houge, Gerry Suchanek, Xuemin Yan),  Financial Management, 30, 2001, 23-May.

"Cash Flow is King: Cognitive Errors by Investors," (with Todd Houge),  Journal of Psychology and Financial Markets, 1, 2000, 161-175.

"The Disappearing Size Effect," (with Joel L. Horowitz, N. E. Savin),  Research in Economics, 54, 2000, 83-100.

"Three Analyses of the Firm Size Premium," (with Joel L. Horowitz, N. E. Savin),  Journal of Empirical Finance, 7, 2000, 143-153.

"Uniformly Least Powerful Tests of Market Efficiency," (with Jay R. Ritter),  Journal of Financial Economics, 55, 2000, 361-389.

"Growth Fixation and Performance of Bank Initial Public Offerings, 1983-1991," (with Todd Houge),  Journal of Banking and Finance, 23, 1999, 1277-1301.

"Performance Following Convertible Bond Issuance," (with Inmoo Lee),  Journal of Corporate Finance, 4, 1998, 185-207.

"The Performance of Japanese Seasoned Equity Offerings," (with Jun Cai),  Pacific-Basin Finance Journal, 6, 1998, 395-425.

"Book-to-Market Across Firm Size, Exchange, and Seasonality: Is There an Effect?"  Journal of Financial and Quantitative Analysis, 32, 1997, 249-268.

"Do Long-Term Shareholders Benefit from Corporate Acquisitions?" (with Anand M. Vijh),  Journal of Finance, 52, 1997, 1765-1790.

"Tests for Cointegration in Financial Markets Time Series: What Answer Do You Want?" (with Paul Newbold),  Advances in Quantitative Analysis of Finance and Accounting, 5, 1997, 49-60.

"The Operating Performance of Firms Conducting Seasoned Equity Offerings," (with Jay R. Ritter),  Journal of Finance, 52, 1997, 1823-1850.

"Long-Term Market Overreaction: The Effect of Low-Priced Stocks," (with Jay R. Ritter),  Journal of Finance, 51, 1996, 1959-1970.

"The New Issues Puzzle," (with Jay R. Ritter),  Journal of Finance, 50, 1995, 23-51.

"Initial Public Offerings: International Insights," (with Jay R. Ritter, Kristian Rydqvist),  Public Offerings: International Insights, (with Jay R. Ritter and Kristian Rydqvist), Pacific-Basin, 2, 1994, 165-199.

"NYSE vs NASDAQ Returns: Market Microstructure or the Poor Performance of Initial Public Offerings?"  Journal of Financial Economics, 33, 1993, 241-260.