Rasoul Foroughfard

Rasoul Foroughfard

Welcome to my website!

I am a PhD candidate in Finance at Arizona State University. I study empirical asset pricing, institutional demand for equities, and the role of business cycles in financial markets.

Email: rossforoughi@gmail.com | CV | Google Scholar | LinkedIn
Phone: +1 (806) 500-1988

Research

  • Institutional Demand and Long-Horizon Expected Returns
    • Job Market Paper
    • Abstract: This paper studies the long-run stock-price effects of institutional investor demand. I show that excess institutional demand creates persistent variation in expected returns extending up to five years, with a one-standard-deviation increase associated with nearly 40 percentage points lower cumulative returns over that period. Within the five-year horizon, the quarterly term structure of expected returns displays a surprisingly persistent pattern rather than a monotonic decay. For example, the expected return effect associated with excess institutional demand is stronger in the sixth quarter than in the subsequent quarter. Consistent with limits-to-arbitrage, the predictability is strongest among small firms, where a long-short portfolio based on institutional demand earns a five-factor alpha of roughly 3% per quarter. Together, the evidence points to a slow-moving demand channel in asset prices that creates long-run return predictability.
  • Net Buyback Dynamics and Risk
    • R&R, Journal of Portfolio Management
    • Abstract: This paper constructs a business-cycle exposure factor using the buyback-to-dividend ratio to distinguish between transitory and persistent cash-flow components. The factor is priced in the cross-section of stock returns, linking payout dynamics to systematic risk.
  • Institutional Equity Demand over Macroeconomic Cycles
    • Abstract: This paper studies how different types of institutional investors - banks, pension funds, insurers, hedge funds, and mutual funds - adjust their equity demand in response to macroeconomic conditions. I document heterogeneous responses across investor types and identify which institutions drive equity demand over the business and financial cycle.
  • Informational Content of Institutional Industry Allocation
    • Abstract: Using 13F data, I identify institutional investors with comparative advantage across industries based on the accuracy of their historical allocations. Aggregating their signals, I construct an industry-level predictor that provides leading information for future equity returns.
  • Industry Fundamentals as Leading Indicators for Equity Returns
    • Abstract: This paper constructs forward-looking signals for aggregate equity returns using real-time industry-level data. I show that changes in industry fundamentals such as employment, sales, and inventories contain predictive information for future market returns.
  • Disagreement Among Institutional Investors and Expected Returns
    • Abstract: I measure disagreement among institutional investors using heterogeneity in equity demand and show that firms with higher disagreement earn lower subsequent returns. The results highlight the role of belief dispersion in shaping expected returns.

Teaching Experience

  • Security Analysis and Portfolio Management (FIN 421)
    • Arizona State University, Undergraduate, Fall 2024
  • Advanced Managerial Finance (FIN 361)
    • Arizona State University, Undergraduate, Summer 2026
    Mean Student Evaluation: 6.7/7.0

    Comments from students:

    1. Rasoul Foroughfard is the best. He replied very fast and helped me solve the problems immediately. I have to say, "Wow." The nice professor!
    2. The lectures were always concise and easy to follow. He always provided a lot of extra help and material for us to use to study. His responsiveness to any message was phenomenal.
    3. I love the way he asks questions about the material, discusses it with students, and explains it.
    4. I have never had an instructor be this supportive and attentive to students' needs.
    5. I'd like Rasoul to continue being clear and approachable when explaining difficult finance concepts, since that made a real difference in understanding the material. He does a good job breaking down complex topics like valuation, risk, and capital budgeting into manageable pieces. I also appreciate how responsive and supportive he is when students have questions or need clarification outside of class. Continuing to flag important problems or concepts ahead of exams was especially helpful for studying efficiently. His office hours have also been genuinely helpful. He is patient and willing to work through problems step by step rather than just giving quick answers, which makes a big difference when you are stuck. It is clear he wants students to understand the material, not just get through it. Overall, I would want him to keep teaching with the same clarity, patience, and accessibility he has shown all term.