About

Lucile Faurel is an Associate Professor at the W. P. Carey School of Business, Arizona State University, specializing in accounting and capital markets research. She earned her bachelor's degree in international economics and initially worked in transfer pricing for Deloitte & Touche Paris before completing her doctorate at New York University. Prior to joining ASU in 2015, she was a faculty member at the University of California, Irvine. Her research focuses on the role of social media in capital markets, the (mis)pricing of accounting information, voluntary disclosure choices, corporate innovation, and insider trading. Her work has been published in leading accounting journals such as the Journal of Accounting and Economics, the Journal of Accounting Research, and The Accounting Review. Lucile Faurel is also recognized as an award-winning teacher, delivering MBA-level courses in financial accounting and financial statement analysis. Outside of academia, she enjoys hiking, skiing, tennis, traveling, and is a mother of three. She was recently honored as one of Poets & Quants' Best 40 Under 40 Business Professors.

Research topics

• Computer Science
• Economics
• Business
• Finance
• Political Science
• Accounting
• Financial economics
• World Wide Web
• Microeconomics
• Actuarial science
• Industrial organization
• Marketing
• Financial system
• Monetary economics

Selected publications

• Do Proprietary Costs Deter Insider Trading?

  Management Science · 2024-07-12 · 5 citations

  article

  Insider trading conveys insiders’ private information to outsiders. This private information potentially benefits rival firms, which may reduce the competitive advantage of the insiders’ firms. Using a composite proprietary cost measure, we find proprietary costs are negatively associated with insiders’ purchases, especially when their trades are more likely to be informative to rivals. Consistent with proprietary costs increasing the costs of insider purchases and, hence, the expected benefits required to trade, insiders earn significantly higher abnormal profits when proprietary costs are higher. Exploiting settings with exogenous and event-driven variation in proprietary costs, we find insiders significantly reduce their purchases when noncompete agreement enforceability is high and before new product launches. Moreover, firms with higher proprietary costs are more likely to impose window-based insider trading restrictions and insiders with greater equity holdings reduce their purchases more strongly in the presence of proprietary costs. Finally, we provide evidence of real effects of insider trading on rivals’ investment decisions. We find that investments are associated with insiders’ purchases at rival firms, and these associations are stronger when proprietary costs at rivals are higher. Our findings indicate insiders and firms are aware of potential proprietary costs when insiders trade on private information and respond accordingly. This paper was accepted by Suraj Srinivasan, accounting. Supplemental Material: The online appendices and data files are available at https://doi.org/10.1287/mnsc.2021.02469 .

  PublisherDOI

• Do Proprietary Costs Deter Insider Trading?

  SSRN Electronic Journal · 2024-01-01

  articleOpen access
  PublisherDOI

• Firm-level investor favoritism and the external financing and capital expenditure anomalies

  Review of Quantitative Finance and Accounting · 2024-06-21

  article1st authorCorresponding
  PublisherDOI

• Insider Trading, Future Earnings, and Post-Earnings Announcement Drift

  SSRN Electronic Journal · 2023-01-01 · 1 citations

  articleOpen access
  PublisherDOI

• Insider trading, future earnings, and post-earnings announcement drift

  Journal of Accounting and Public Policy · 2023 · 8 citations

  • Political Science
  • Business
  • Monetary economics
  PublisherDOI

• The Role of Social Media in the Corporate Bond Market: Evidence from Twitter

  SSRN Electronic Journal · 2022-01-01 · 12 citations

  articleOpen access
  PublisherDOI

• Bringing Innovation to Fruition: Insights From New Trademarks

  Journal of Financial and Quantitative Analysis · 2022 · 32 citations

  1st authorCorresponding
  • Computer Science
  • Business
  • Industrial organization

  Abstract We build a novel comprehensive data set of new product trademarks as an output measure of product development innovation. We show that risk-taking incentives in CEO compensation motivate this type of innovation and that this innovation improves firm performance. Using an exogenous shock to executive compensation, we find that reductions in stock option compensation cause reductions in new product development. We also find that firms undertaking new product development experience increases in future cash flow from operations and return on assets. These findings suggest the importance of product development innovation to firms and new trademarks as a novel innovation measure.

  PublisherDOI

• The Role of Social Media in the Corporate Bond Market: Evidence from Twitter

  Management Science · 2022 · 37 citations

  • Computer Science
  • Business
  • Accounting

  Prior studies document the role social media information plays in the stock market and the important dissimilarities between the bond and stock markets. Bridging these two types of literature, we examine the role of social media information in the corporate bond market. Analyzing a broad sample of messages by Twitter individual users, posted just prior to earnings announcements, containing bond, credit risk, and fundamental information, we find that aggregate Twitter opinion (OPI) predicts upcoming announcement bond returns and changes in credit default swap (CDS) spreads, and is associated with future changes in bond yield spreads and credit ratings, thereby providing economically important information to the bond market. This interpretation is bolstered by results from a variety of cross-sectional analyses. Finally, we document an association between OPI and future changes in default risk, which casts light on the nature of the Twitter information underlying our findings. Overall, our findings demonstrate that Twitter appears to disseminate potentially economically important information to even the presumably sophisticated bond and CDS investors, as well as information intermediaries. This paper was accepted by Suraj Srinivasan, accounting. Funding: P. Mohanram acknowledges financial support from the Social Sciences and Humanities Research Council (SSHRC) of Canada. Supplemental Material: The data files and online appendix are available at https://doi.org/10.1287/mnsc.2022.4589 .

  PublisherOA PDFDOI

• The Issuance and Informativeness of Management Long-Term Earnings Growth Forecasts

  Accounting Horizons · 2018-04-01 · 11 citations

  article1st authorCorresponding

  SYNOPSIS This study examines quantitative long-term earnings growth (LTG) forecasts issued by publicly traded firms. While the difficulty of verifying management LTG forecasts provides incentives for self-serving disclosures, we find that stakeholder interests and forecast credibility considerations significantly constrain such tendencies. In particular, we find that demand from market participants, information asymmetry, peer LTG forecast provision, product market competition, and industry profitability drive management LTG forecast issuance, while poor performance and high uncertainty over firm growth prospects deter management LTG forecast issuance. Moreover, we provide evidence that management LTG forecasts, on average, provide incremental information about future earnings growth, and that high competition and investor monitoring increase LTG forecast informativeness, consistent with predictions of theoretical cheap talk models. Our findings also indicate that both upward and downward LTG guidance provide incremental information about future earnings growth, and that analysts revise their LTG forecasts in the direction of LTG guidance. Overall, our study contributes to the voluntary disclosure literature by providing evidence that suggests elements of a firm's disclosure environment significantly influence the issuance and informativeness of difficult-to-verify disclosures. JEL Classifications: C23; D81; D82; M41.

  PublisherDOI

• Using Firm-Level Favoritism to Better Understand the External Financing and Capital Expenditure Anomalies

  SSRN Electronic Journal · 2018-01-01 · 2 citations

  articleOpen access1st authorCorresponding
  PublisherDOI

Frequent coauthors

• Eli Bartov

  9 shared

• Stephen A. Hillegeist

  Arizona State University

  6 shared

• Lyungmae Choi

  University of Sydney

  6 shared

• Partha S. Mohanram

  University of Toronto

  5 shared

• Karthik Balakrishnan

  3 shared

• Richard Carrizosa

  University of California, Riverside

  3 shared

• Siew Hong Teoh

  Anderson University - South Carolina

  3 shared

• Brian D. Cadman

  University of Utah

  3 shared

Education

• Ph.D.

  New York University

  2008

• B.A.

  American University of Paris, France

  2001

Awards & honors

• Best Paper Prize, California Corporate Finance Conference, 2…
• Best Paper Prize, Center for Corporate Reporting and Governa…
• UCI Paul Merage School of Business, Don Beall Center for Inn…
• UCI Paul Merage School of Business, Excellence in Undergradu…
• NYU Stern School of Business, Award for Ph.D. Teaching Excel…