Jonathan Clarke is the Associate Dean for Undergraduate Programs and an Associate Professor of Finance in the College of Business. He received his PhD from the Katz Graduate School of Business at the University of Pittsburgh. His undergraduate degrees are in Mathematics and Economics from Indiana University in Bloomington. His research has been presented at a number of conferences including the American Finance Association, Western Finance Association, the Utah Winter Finance Conference, and the North American Winter Meeting of the Econometric Society.
Dr. Clarke's work has been published in the Journal of Finance, Journal of Financial Economics, Management Science, the Journal of Financial and Quantitative Analysis, the Journal of Business, the Journal of Banking and Finance, Annals of Finance, Journal of Empirical Finance, and the Journal of Corporate Finance. His paper titled "Long-Run Performance And Insider Trading In Completed And Canceled Seasoned Equity Offerings" won the 2001 William F. Sharpe award for best published paper in the Journal of Financial and Quantitative Analysis.
Dr. Clarke is an award winning teacher. He was voted the 2009 MBA Core Professor of the Year, was a 2009 Hesburgh Award teaching fellow and received the 2010 James F. Frazier, Jr. Award for Teaching Excellence. He has taught in custom programs for NCR, Clorox, Lockheed Martin and the National Football League. Dr. Clarke is a director of the Eastern Finance Association, on the editorial board of The Financial Review and edits the Handbook of Modern Finance.
Areas of Expertise (5)
Higher Education Leadership
Selected Accomplishments (5)
Outstanding Reviewer Award, The Financial Review
MBA Core Professor of the Year:
Class of 1934 Course Survey Teaching Effectiveness Award (Institute-wide),
James F. Frazier, Jr. Award for Teaching Excellence
One of two College-wide teaching awards given annually
Mills B. Lane Term Professorship in Banking:
2008 - 2011
University of Pittsburgh: Ph.D., Finance 2001
Indiana University: B.A., Mathematics and Economics 1995
- Handbook of Modern Finance : Editor
- Financial Review : Associate Editor
Selected Articles (5)
Jonathan Clarke, Hailiang Chen, Ding Du, Yu Jeffrey Hu
Does fake news in financial markets attract more investor attention and have a significant impact on stock prices? We use the SEC crackdown of stock promotion schemes in April 2017 to examine investor attention and the stock price reaction to fake news articles. Using data from Seeking Alpha, we find that fake news stories generate significantly more attention than a control sample of legitimate articles. We find no evidence that article commenters can detect fake news. Seeking Alpha editors have only modest ability to detect fake news. The broader stock market appears to price fake news correctly. The stock price reaction to the release of fake news is not significantly different than a matched control sample over short and longer-term windows. We conclude by presenting a machine learning algorithm that is successful in identifying fake news articles.
Daniel Bradley, Jonathan Clarke, Linghang Zeng
Between 2009 and 2013, Theflyonthewall. com (FLY) leaks 58% of recommendation revisions, often before the market open and before I/B/E/S time stamps. We show FLY improves price discovery, but leaked recommendations hamper the ability of brokers to offer price improvement on trades routed through them. Three large brokers sued FLY and ultimately lost, upon which the average broker experienced-1.3% abnormal announcement returns. Consequently, brokers trim their analyst workforce and number of stocks covered. Overall, this disruption has negatively impacted the incentives to produce information leading to a further decline in the scope of the sell-side research industry.
Jonathan Clarke, Arif Khurshed, Alok Pande, Ajai K Singh
We use India's unique regulatory design to test sentiment-based models of IPO initial returns. Using a sample of 362 Indian offerings from 2003 to 2014, we find that the traditional measure of IPO underpricing averages 23%. We decompose the traditional underpricing measure into two components: one related to voluntary underpricing by the underwriter and the other component related to the IPO's first-day trading activity. We find minimal levels of voluntary underpricing. However, initial returns on the first day average 14% and are primarily driven by the unmet demand of non-institutional investor groups. Overall, our results support sentiment-based models of IPO initial returns.
James Cicon, Jonathan Clarke, Stephen P Ferris, Narayanan Jayaraman
This study examines whether the “soft” information present in merger and acquisition (M&A) announcement press releases contains incrementally valuable news relative to traditional “hard” data. Using the methodology of Loughran and McDonald , we construct measures of synergy expectations and managerial optimism for more than 1,200 M&A announcements over the period 1995–2007. We find that synergy expectations are positively related to announcement period returns, longer-run performance, and the market's reaction to quarterly earnings announcements. Managerial optimism is insignificant for explaining a merger's subsequent performance. We conclude that the soft information contained in M&A announcements concerning synergy expectations can provide useful information to investors.
Daniel Bradley, Jonathan E Clarke, Suzanne S Lee, Chayawat Ornthanalai
We demonstrate that time stamps reported in I/B/E/S for analysts’ recommendations released during trading hours are systematically delayed. Using newswire‐reported time stamps, we find 30‐minute returns of 1.83% (−2.10%) for upgrades (downgrades), but for this subset of recommendations we find corresponding returns of −0.07% (−0.09%) using I/B/E/S‐reported time stamps. We also examine the information content of recommendations relative to management guidance and earnings announcements. Our evidence suggests that analysts’ recommendations are the most important information disclosure channel examined.