We provide a psychological explanation for the delayed price response to news about economically linked firms. We show that the return predictability of economically linked firms depends on the nearness to the 52-week high stock price. The interaction between news about economically linked firms...

We hypothesize that when investors' attention to financial markets decreases, they rationally allocate relatively more attention to market-level information than to firm-specific information, leading to increases in stock return co-movements. Using large jackpot lotteries as exogenous shocks...

We find that aggregate opportunistic insider trading positively predicts future market returns in both in-sample and out-of-sample tests. A one-standard-deviation increase in our aggregate opportunistic insider trading index is associated with a 0.57% increase in S&P 500 excess returns in the...

We hypothesize that a surge in availability of information coupled with investors’ confirmation bias could aggravate retail investors’ behavioral biases due to their cherry-picking of information that only confirms their priors. We use the staggered EDGAR implementation to provide causal...

We find that aggregate insider trading does not predict market returns in recent years. In contrast, aggregate opportunistic insider trading that excludes routine insider trades positively predicts future market returns in both in-sample and outof-sample tests. A one-standard-deviation increase...