Richard B. Evans

About

Richard B. Evans is the Senior Associate Dean for Research Services and Support and holds the C. Stewart Sheppard Professor of Business Administration at the University of Virginia's Darden School of Business. His research broadly deals with investment decisions, with current projects exploring fund manager compensation and incentives, exchange-traded funds, corporate political activity and stock performance, short-selling, and quantitative versus fundamental investment strategies. His work has been published in prominent finance journals such as the Journal of Finance, the Journal of Financial Economics, and the Review of Financial Studies. Evans's research has been cited by major financial press including The New York Times, The Wall Street Journal, The Economist, and Forbes, as well as regulatory agencies like the Securities and Exchange Commission, the U.S. General Accounting Office, and the White House Council of Economic Advisors. He has presented his research to the SEC, Federal Reserve, Social Security Administration, and the American Finance Association. Additionally, he serves on the editorial board of the Financial Analysts Journal and is the Academic Director of the Money Management Institute's Executive IQ Program. Evans holds a bachelor’s and master’s degree in chemistry from the University of Utah and a master’s degree and doctorate in finance from the Wharton School at the University of Pennsylvania.

Research topics

• Finance
• Economics
• Econometrics
• Business
• Computer Science
• Financial economics
• Microeconomics
• Social psychology
• Psychology
• Monetary economics

Selected publications

• Models or Stars: The Role of Asset Pricing Models and Heuristics in Investor Risk Adjustment

  Review of Financial Studies · 2020 · 131 citations

  1st authorCorresponding

  Abstract We examine the role of factor models and simple performance heuristics in investor decision-making using Morningstar’s 2002 rating methodology change. Before the change, flows strongly correlated with CAPM alphas. After, when funds are ranked by size and book-to-market groups, flows become more sensitive to 3-factor alphas (FF3). Flows to a matched institutional sample (same managers/strategies) follow FF3 before and after the change but are unrelated to the CAPM. Placebo tests with sec…

  DOI

• Intraday arbitrage between ETFs and their underlying portfolios

  Journal of Financial Economics · 2021 · 71 citations

  PublisherDOI

• Identity, Diversity, and Team Performance: Evidence from U.S. Mutual Funds

  Management Science · 2024-07-05 · 37 citations

  article1st authorCorresponding

  We examine team diversity and performance in the asset management industry through the lens of identity. Focusing on political ideology as the relevant dimension of identity, we find that diverse teams outperform homogeneous teams. The mechanism involves both improved decision making due to more diverse perspectives and increased monitoring by heterogeneous team members. The benefits of ideological diversity are undone when political polarization is higher, consistent with increased intrateam co…

  PublisherDOI

• The Loan Fee Anomaly: A Short Seller’s Best Ideas

  Management Science · 2024-10-09 · 17 citations

  article

  We find that equity loan fees, which have been largely ignored by the anomalies literature, are the best predictor of cross-sectional returns. When compared with 102 other anomalies and other short-selling measures, the loan fee anomaly has the highest monthly long-short return (4.01%), the highest monthly Sharpe Ratio (0.66), and, unlike other anomalies, exhibits strong persistence throughout the sample. Although prior work has shown that existing anomalies reside in high loan fee stocks, we fi…

  PublisherDOI

• Operational Shorting and ETF Liquidity Provision

  SSRN Electronic Journal · 2022-01-01 · 17 citations

  articleOpen access1st authorCorresponding
  PublisherDOI

Frequent coauthors

• Susan E. K. Christoffersen

  University of Toronto

  36 shared

• Rüdiger Fahlenbrach

  17 shared

• David K. Musto

  University of Pennsylvania

  16 shared

• Miguel A. Ferreira

  European Corporate Governance Institute

  14 shared

• Melissa Porras Prado

  Universidade Nova de Lisboa

  11 shared

• Rabih Moussawi

  10 shared

• Pedro Matos

  European Corporate Governance Institute

  9 shared

• Rafael Zambrana

  University of Notre Dame

  7 shared

Awards & honors

• Santander Research Fellowship at Cambridge University
• Senior Research Fellowship at the Long-Term Investors think…

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