The paper finds that firms' exposure to temperature changes predicts stock returns. We use the sensitivity of stock returns to abnormal temperature changes to measure firm-level climate sensitivity. Stocks with higher climate sensitivity forecast lower stock returns. A trading strategy that...

Using a novel dataset containing the forecasts of both buy-side and sell-side analysts, and individual investors, we find that crowdsourced earnings forecasts are more accurate than expert forecasts of sell-side analysts. Examining the economic mechanisms that generate superior crowd forecasts,...

We examine whether exogenous and extremely negative events such as terrorist attacks and mass shootings influence the sentiment and forecasts of sell-side equity analysts. We find that analysts who are local to these attacks issue forecasts that are relatively more pessimistic than the consensus...

We study the forecasting behavior of minority sell-side equity analysts. Distinct from the impact of cultural and geographic diversity, we demonstrate that, although minority analyst forecasts have lower accuracy, consistency in their forecasts generates stronger correlation between the...

We propose a theoretical measure of income hedging demand and show that it affects asset prices. We focus on the value factor and first demonstrate that our demand estimates are correlated with the actual demands of retail and mutual fund investors. Then, we show that the aggregate HML demand...