Justin G. Davis, PhD

Assistant Professor of Business Analytics
Washington and Lee University
Department of Business Administration

PhD in Economics, Management, and Organization, 2022
Universitat Autònoma de Barcelona

MS in Management, Organization, and Business Economics, 2016
Universitat Autònoma de Barcelona

BA in Business Management Economics, 2012
University of California, Santa Cruz

Published research

Geopolitical Risk and Crowdfunding Performance, with Naif Alsagr, Douglas J. Cumming, and Ahmed Sewaid
Journal of International Financial Markets, Institutions and Money (2023) W&L article

Developing markets around the world exhibit geopolitical risks (GPR) that impact the likelihood that the rewards will be delivered. This points towards a potential association between GPR and the likelihood of successful crowdfunding financing. This paper examines 1,672 fundraising attempts from the 19 developing countries listed in the GPR index. The data indicate that GPR is negatively associated with the likelihood of crowdfunding success. Further, the evidence shows that entrepreneurs can moderate the costs of GPR via signaling and campaign disclosures. Implications for policymakers and entrepreneurs are discussed.

Institutional ownership, earnings management, and earnings surprises: Evidence from 39 years of U.S. data, with Miguel Angel García Cestona
Journal of Economics Finance and Administrative Science (2023)

As the influence of institutional investors over managerial decision-making grows, so does the importance of understanding the effect of institutional investor ownership (IO) on firm outcomes. We take a comprehensive approach to studying the effect of IO on earnings management (EM). We study the relation between IO and EM using a sample of 59,503 listed U.S. firm-year observations from 1981-2019. We proxy EM with earnings surprises and with accruals based and real activities measures. We test for nonlinear relations and analyze changes resulting from the passage of the Sarbanes–Oxley Act. Our findings support a positive IO-EM relation overall, but show that the relation is dynamic and heavily context-dependent with evidence of nonlinearity. We also find evidence that IO affects accruals-based EM positively and real activities EM negatively. To our knowledge, this is the first study of the IO-EM relation to consider evidence of nonlinearity in the U.S. context, measuring changes to the relation over time, and with the use of several measures of EM.

Financial Reporting Quality and the Effects of CFO Gender and Board Gender Diversity, with Miguel Angel García Cestona
Journal of Financial Reporting and Accounting (2022)

The purpose of this study is to examine the effects of CFO gender, board gender diversity and the interaction of both factors on financial reporting quality (FRQ) proxied by restatements. Restatements indicate inaccurate financial reporting. We use fixed effects conditional logistic regression models to compare firms with and without restatements matched by size, industry, and year. Our unique matched–pair sample consists of 546 listed US firms from the period 2005–2016. Our results provide evidence that restatements are less likely when the CFO is a woman and when a higher proportion of women serve on the board of directors (BOD). Considering the interaction effects, we find evidence that women on the BOD are more effective at reducing restatement likelihood when the CFO is also a woman. And that, although female CFOs reduce restatement likelihood generally, they have no statistically significant effect on restatement likelihood when the BOD is all-male. To the best of our knowledge, this study is the first to consider how FRQ is affected by the interaction effects of CFO gender and board gender diversity. The findings corroborate upper echelons theory and extend the understanding of the effects of managerial gender diversity at a time when firms face growing pressure to increase gender diversity at the highest levels. The unique sample, methodology and findings provide new insights into the impact of gender on FRQ that has important policy implications.


Fundamentals of Business Analytics, 2022 – present
Washington and Lee University

Text Analytics for Business Insights, 2022 – present
Washington and Lee University

Business Economics, 2020 – 2021
Universitat Autònoma de Barcelona

Information Systems, Data Management Section, 2018 – 2020
Universitat Autònoma de Barcelona

External profiles