This paper examines the equity market reaction to consumer sentiment in the context of the sentiment index issued by the Melbourne Institute of Applied Economics and Social Research. Unlike the Michigan index in the US, which is announced in phases, this index is announced once per month, which...

We consider a setting where owning stock confers direct utility due to an affect heuristic. Specifically, holding equity in companies with visible brands or environmentally conscious products yields positive consumption benefits, whereas investing in sin stocks yields the reverse. We find that...