This study shows that weather-based indicators of mood impact perceptions of mispricing and trading decisions of institutional investors. Using survey and disaggregated trade data, we show that relatively cloudier days increase perceived overpricing in individual stocks and the Dow Jones...

Motivated by the observation that elderly liquidate their mutual fund holdings regularly, we examine whether mortality patterns have a predictable impact on aggregate mutual fund flows and asset prices. Our key conjecture is that periods with high mortality rates would be associated with higher...

We show that geographical variation in the level of investor sophistication influences local asset prices. Investors in less sophisticated regions exhibit stronger trading correlations, and correspondingly, the returns of firms headquartered in less sophisticated areas are more strongly...

This study investigates whether retail and institutional investors concentrate their trading among certain stock categories (i.e., habitats) and whether their trading activities generate return comovements among stocks within those habitats. Our results indicate that both retail and...

This paper examines the relation between equity portfolio diversification choices of individual investors and stock returns. Using a six-year panel (1991-96) of individual investors, I find that stocks with less diversified individual investor clientele earn higher returns. A zero cost portfolio...

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...

Using Internet search volume for lottery to capture gambling sentiment shifts, we show that when the overall gambling sentiment is high, investor demand for lottery-like stocks increases, these stocks earn positive short-run abnormal returns, managers are more likely to announce stock splits to...

We examine whether earnings forecasts of sell-side equity analysts are influenced by the forecasts of other analysts on other firms in the analyst portfolio. We find that analysts exhibit “social learning” where analyst optimism is negatively correlated with the recent forecast errors among...

This paper examines how gambling-motivated trading affects aggregate financial market outcomes. Using a unique global gambling data set covering 39 countries, we show that the dollar volume of stock market gambling is at least 3.5 times the combined volume of “traditional” gambling outlets...