Leon Zolotoy

Leon Zolotoy joined Melbourne Business School in 2008 as a Senior Lecturer of Finance.

He took up the position after completing his PhD in Econometrics at Tilburg University in the Netherlands and has been a Professor of Finance at the School since January 2023.

Leon’s research has been published in The Accounting Review, Journal of Financial and Quantitative Analysis, Management Science, Review of Accounting Studies, Journal of Corporate Finance, Journal of Banking and Finance, Strategic Management Journal, Journal of Management and more. It focuses on the relationship between accounting earnings and stock prices, asset pricing, and behavioural finance and accounting.

Leon currently teaches Financial Management, Investments, and Mergers & Acquisitions on the part-time MBA program.

Selected Publications

Executive Equity Risk-Taking Incentives and Audit Pricing (with Yangyang Chen, Ferdinand Gul, and Madhu Veeraraghavan) The Accounting Review, 90 (2015), 2205–2234.

Stock liquidity and Managerial Short-Termism. (with Yangyang Chen, Ghon Rhee, and Madhu Veeraraghavan) Journal of Banking and Finance, 60 (2015), 44-59.

Competing Earnings Announcements: Which Announcement Do Investors Process First? (with James R. Frederickson) The Accounting Review, 91 (2016), 441–462.

Stock Liquidity and Stock Price Crash Risk (with Xin Chang and Yangyang Chen) Journal of Financial and Quantitative Analysis, 52 (2017), 1605-1637

Aggregate Earnings and Stock Market Returns: The Good, the Bad, and the State-Dependent. (with James R. Frederickson and John D. Lyon) Journal of Banking and Finance, 77(2017), 157-175.

The Social Context of Compensation Design: Social Norms and the Impact of Equity Incentives (with Don O'Sullivan and Geoffrey Martin). Human Resource Management, 57 (2018), 1233-1250

The Role of Affect in Shaping the Behavioral Consequences of CEO Option Incentives. (with Don O'Sullivan, Geoffrey Martin, and Madhu Veeraraghavan). Journal of Management, 45 (2019), 2920-2951

Stock Liquidity and Corporate Tax Avoidance. (with Yangyang Chen, Rui Ge, and Henock Louis). Review of Accounting Studies, 24 (2019), 309-340

Character Cues and Contracting Costs: The Relationship Between Philanthropy and the Cost of Capital.” (with Don O’Sullivan and Jill Klein). Journal of Business Ethics, 154 (2019), 497-515

Local Religious Norms, Corporate Social Responsibility, and Firm Value (with Don O'Sullivan and Yangyang Chen). Journal of Banking and Finance, 100 (2019), 218-233

Coskewness Risk Decomposition, Covariation Risk, and Intertemporal Asset Pricing. (with Petko S. Kalev and Konark Saxena). Journal of Financial and Quantitative Analysis, 54 (2019), 335-368

Media Coverage and IPO Pricing Around the World. (with Yangyang Chen, Abhinav Goyal, and Madhu Veeraraghavan). Journal of Financial and Quantitative Analysis, 55 (2020), 1515-1553

Terrorist Attacks, Investor Sentiment, and the Pricing of Initial Public Offerings (with Yangyang Chen, Abhinav Goyal, and Madhu Veeraraghavan). Journal of Corporate Finance, 65 (2020), 101780

Stakeholder Agency Relationships: CEO Stock Options and Corporate Tax Avoidance (with Don O'Sullivan, Geoffrey Martin, and Robert Wiseman). Journal of Management Studies, 58 (2021), 782-814

The Role of Ethical Standards in the Relationship Between Local Religious Norms and M&A Announcement Returns. (with Don O'Sullivan and Keke Song). Journal of Business Ethics, 170 (2021), 721-742

Mood and Ethical Decision Making: Positive Affect and Corporate Philanthropy. (with Don O'Sullivan, Myeong-Gu Seo, and Madhu Veeraraghavan). Journal of Business Ethics, 171 (2021), 189-208

CEO Early-Life Disaster Experience and Stock Price Crash Risk (with Yangyang Chen, Michael Fan, and Xin Yang). Journal of Corporate Finance, 68 (2021), 101928

CEO Early-Life Disaster Experience and Corporate Social Performance (with Don O'Sullivan and Michael Fan). Strategic Management Journal, 42 (2021), 2137-2161

Executive Equity Risk-Taking Incentives and Firms' Choice of Debt Structure (with Yangyang Chen, Iftekhar Hasan, and Walid Saffar). Journal of Banking and Finance, 133 (2021), 106274

Global Board Reforms and the Pricing of IPOs (with Yangyang Chen and Abhinav Goyal). Journal of Financial and Quantitative Analysis (2022), forthcoming

Behavioral Agency and Firm Productivity: Re-visiting the Incentive Alignment Qualities of Stock Options (with Don O'Sullivan and Geoffrey Martin). Journal of Management Studies(2022), forthcoming

Does CEO Overconfidence Affect Workplace Safety? (with Yangyang Chen, Emmanuel Ofosu, and Madhu Veeraraghavan). Journal of Corporate Finance (2023), forthcoming

Rank-and-File Employee Stock Options and Workplace Safety (with Yangyang Chen, Emmanuel Ofosu, Don O'Sullivan, and Madhu Veeraraghavan). Management Science (2024), forthcoming