David R. Moore, Ph.D.
Associate Professor of Finance, College of Business Administration | Loyola Marymount University
Los Angeles, CA, UNITED STATES
Biography
You can contact David Moore at David.Moore@lmu.edu.
David Moore is an associate professor of finance at Loyola Marymount University. He earned his B.S. in engineering management and MBA from the University of Tennessee at Chattanooga (UTC). He competed in track and field and cross-country while at UTC, earning Academic All-American honors in 2010. In 2018, he joined LMU after earning his Ph.D. in finance from the University of Kentucky. Professor Moore’s research is in corporate finance with a focus on payout policy. He studies the reasons why firms repurchase shares as well as the manner in which they buyback those shares. At LMU, David teaches “Introduction to Corporate Finance” at the undergraduate level. Outside of academics, David enjoys cycling, running, swimming, beach volleyball, and traveling to new places with his wife.
Education (3)
University of Kentucky: PhD, Finance 2017
University of Tennessee at Chattanooga: MBA 2012
University of Tennessee at Chattanooga: BS, Engineering Management 2010
Areas of Expertise (3)
Corporate Finance
Payout Policy
Compensation
Accomplishments (16)
Mullineaux Award (professional)
2017-06-16
Best Ph.D. student in the Gatton College
Schnatter Institute Fellowship (professional)
2016-06-17
Summer research grant
AFA Doctoral Student Travel Grant (professional)
2016-06-10
AFA Doctoral Student Travel Grant
Gatton Doctoral Fellowship (professional)
2014-05-16
2014-2017 Gatton Doctoral Fellowship
Outstanding Graduate Assistant (professional)
2014-06-13
Outstanding Graduate Assistant
Max Steckler Fellowship (professional)
2013-06-14
2013-2014 Max Steckler Fellowship
James E. and Christine D. Luckett Endowment (professional)
2012-06-08
2012-2014 James E. and Christine D. Luckett Endowment
Outstanding Masters Student - MBA Program (professional)
2012-06-08
Outstanding Masters Student - MBA Program
John C. Stophel Distinguished Student Award (professional)
2012-06-08
John C. Stophel Distinguished Student Award
NCAA-Capital One Academic All-District Team (professional)
2011-06-10
NCAA-Capital One Academic All-District Team
NCAA-Capital One Academic All-American Men's Track and Field / Cross-Country (professional)
2010-06-11
NCAA-Capital One Academic All-American Men's Track and Field / Cross-Country
Dayle May Award (professional)
2010-06-11
Highest GPA among graduating student-athletes
NCAA-Capital One Academic All-District Team (professional)
2010-06-11
NCAA-Capital One Academic All-District Team
Outstanding Senior Award (professional)
2010-06-11
College of Engineering
SoCon Student Athlete of the Week (professional)
2010-06-11
SoCon Student Athlete of the Week
SoCon All-Academic Team and Commissioner Medal recipient (professional)
2006-06-09
2006-2011 SoCon All-Academic Team and Commissioner Medal recipient
Affiliations (5)
- American Finance Association
- Financial Management Association
- MFA Finance
- European Finance Association
- Small Business Administration
Links (2)
Event Appearances (9)
Program Committee, Session Chair, Discussant, Presenter
Eastern Finance Association Philadelphia
2018-07-13
2017 American Finance Association; Financial Management Association
2017 American Finance Association; Financial Management Association Chicago, IL
2017-01-09
Discussant, Session Chair
2016 American Finance Association; Financial Management Association
2016-06-10
Discussant
Northern Finance Association
2016-06-10
Presenter, Discussant
2015 Midwest Finance Association
2015-06-12
Presenter, Discussant, Session Chair
Eastern Finance Association
2015-06-12
Presenter
UK/UT Conference
2015-06-12
Presenter
Northern Finance Association
2015-06-12
Presenter, Discussant, Session Chair
Financial Management Association
2015-06-12
Research Focus (3)
Commitment versus Financial Flexibility in Payout Decisions: Evidence from 10b5-1 Preset Repurchase Plans
We are the first to document and study the use of Rule 10b5 1 preset repurchase plans. Though the Rule’s original intent was to clarify conditions for enforcing insider trading laws, generally thought to apply to individuals classified as firm insiders, we find strong use of the Rule at the firm level to repurchase company stock. We exploit this new and widespread form of payout to examine an issue at the core of payout decisions—the tradeoff between commitment and financial flexibility. Relative to open market repurchases, preset plans provide an expanded repurchase window and increased legal cover, albeit at the cost of reducing repurchase flexibility and the option to time repurchases. These costs and benefits are significantly associated with Rule 10b5-1 adoption: Firms with alternative sources of financial flexibility are more likely to pre-commit to a repurchase plan, as are firms with a history of poor repurchase timing and firms constrained by blackout windows. Consistent with preset plans signaling commitment, Rule 10b5-1 repurchase announcements are associated with greater and faster completion rates, with more positive market reactions, and with more dividend substitution than open market repurchases. Lastly, we find that preset repurchase plans represent a unique payout tool whose introduction encouraged a different set of firms to buy back stock and significantly altered the payout landscape.
Managerial Self-Interest and Strategic Repurchases: Evidence from Equity Vesting Schedules
This paper studies the strategic use and timing of share repurchases by insiders for personal gain. Using grant level compensation data and a hand-collected sample of monthly repurchases, I find a positive relation between CEO equity sales and share repurchases. I identify the relation using the vesting schedule of equity grants as an instrument for equity sales. This behavior is stronger when the CEO is chairman of the board but otherwise is persistent across firm characteristics. However, these repurchases do not appear to destroy shareholder value. The results indicate managerial self-interest and CEO contracts motivate a subset of share repurchases.
The Evolution of Employee Compensation, Dilution, and Payout Policy
We examine the relation between equity compensation and payout policy in light of the shift from options to restricted stock and the rise in performance-based compensation. Our results strongly support dilution as the primary channel through which compensation relates to payout policy; dividend protection no longer has first-order effects on payout. Analyses using a shock to compensation around mandatory option expensing and an instrumental variable approach suggest that the relation between dilution and payout is likely causal. Further, as the dilution channel predicts, equity compensation positively relates to repurchase frequency and thus repurchase timing.
Courses (1)
FNCE 3410
Fundamentals of Finance
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