Faculty Directory
Karl B. Diether
Associate Professor of Business Administration
E-Mailkarl.b.diether@tuck.dartmouth.edu
Phone603-646-1832
DegreePhD, The University of Chicago, 2004; BA, Brigham Young University, 1998
AREAS OF EXPERTISEInvestments, stock market efficiency, and short selling
Current Research Topics
Profitability and strategies of short sellers, short-selling constraints, performance of informed investors
Selected Publications
With K.-H. Lee and I.M. Werner, "It’s SHO Time! Short-Sale Price Tests and Market Quality," Journal of Finance, 64, 2009; with K.-H. Lee and I.M. Werner, "Short-Sale Strategies and Return Predictability," Review of Financial Studies, 22, 2009; with L. Cohen and C.J. Malloy, "Supply and Demand Shifts in the Shorting Market," Journal of Finance, 62, 2007, Smith Breeden Prize for Best Non-Corporate Finance Paper; with C.J. Malloy and A. Scherbina, "Differences of Opinion and the Cross Section of Stock Returns," Journal of Finance, 57, 2002, reprinted in The Psychology of World Equity Markets Vol. II, Edward Elgar Publishing, 2005
Working Papers
With I.M. Werner, “When Constraints Bind”; “Short Selling, Timing, and Profitability”; “Long-Run Event Performance and Opinion Divergence”
Awards
Undergraduate Program Teaching Award, Fisher College of Business, The Ohio State University, 2008
Professional Activities
Academic positions: Tuck School of Business, 2009–present; Assistant Professor, 2004–09, Fisher College of Business, The Ohio State University; Instructor, 2003–04
Editorial positions: Referee, Journal of Banking and Finance, Journal of Business, Journal of Empirical Finance, Journal of Finance, Journal of Financial and Quantitative Analysis, Journal of Financial Markets, Journal of Financial Research, Management Science, Review of Financial Studies; Discussant, American Finance Association, 2008
Research & Teaching Summary
Karl Diether’s seminal research in short selling—part of his interest in stock market efficiency and performance of informed investors—was reviewed by the SEC as it evaluated controls of short-selling abuse. Professor Diether teaches the core course Corporate Finance and the elective Behavioral Finance.