Mendoza Directory

Faculty & Research

Photo of RichardR.Mendenhall

Richard R. Mendenhall

Professor
William and Cassie Daley Professor of Finance and Department Chair

BIO

Rick Mendenhall studies the role of public information in setting stock prices. For example, he has studied the impact on stock prices of earnings announcements, securities analysts’ forecasts, and firms being added to or deleted from the S&P 500 Index. His studies have been featured and discussed in many media outlets such as the Wall Street Journal, the New York Times, Business Week, Forbes, CNN Headline News, and National Public Radio. In addition to his research, he remains current by maintaining professional contacts primarily with money managers and consultants. 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 has been a visiting faculty member at Indiana University and New York University.

AREAS OF EXPERTISE

EDUCATION

TEACHING

  • Finance II

PUBLICATIONS

"Who, if Anyone, Reacts to Accrual Information?" (with Robert H Battalio, Alina Lerman, Joshua Livnat, ),  Journal of Accounting and Economics, 53, February, 2012, 205-224.

"Post-Earnings Announcement Drift: Bounds on Profitability for the Marginal Investor," (with Robert H Battalio, ),  Financial Review, 46, November, 2011, 513-539, Designated as one of two Outstanding Papers for 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, August, 2007, 63-71.

"Comparing the Post-Earnings-Announcement Drift for Surprises Calculated from Analyst and Time Series Forecasts," (with Joshua Livnat, ),  Journal of Accounting Research, 44, March, 2006, 177-205.

"Earnings expectations, investor trade size, and anomalous returns around earnings announcements," (with Robert H Battalio, ),  Journal of Financial Economics, 77, August, 2005, 289-319.

"Arbitrage Risk and Post-Earnings-Announcement Drift,"  Journal of Business, 77, October (4th Quarter/Autumn), 2004, 875-894.

"How Naive is the Market's Use of Firm-Specific Earnings Information?"  Journal of Accounting Research, 40, June, 2002, 841-863.

"Option Listing and the Stock-Price Response to Earnings," (with Donald H. Fehrs),  Journal of Accounting and Economics, 27, February, 1999, 57-87.

"New Evidence on the Stock Price Effects Associated with Changes in the S&P 500 Index," (with Anthony W. Lynch, ),  Journal of Business, 70, July (3rd Quarter/Summer), 1997, 351-383.

"The Relation Between the Value Line Enigma and Post-Earnings Announcement Drift," (with John Affleck-Graves, ),  Journal of Financial Economics, 31, February, 1992, 75-96.

"Evidence on the Possible Underweighting of Earnings Information,"  Journal of Accounting Research, 29, 1991, 170-179.

"Forecasts of Earnings Per Share: Possible Sources of Analyst Superiority and Bias," (with John Affleck-Graves, Larry R. Davis, ),  Contemporary Accounting Research, 6, 1990, 501-517.

"Bad News and Differential Market Reactions to Announcements of Earlier Versus Fourth Quarter Earnings," (with William D. Nichols),  Journal of Accounting Research, 1988, 63-86.