Theoretical studies find that optimistic investors, who overweight the probabilities of better outcomes, can survive and influence asset prices even in a competitive market. To study the impact of optimistic investors on the cross-section of expected stock returns, I define the measure of...

Focusing on euro area stocks around the time of the Russian invasion of Ukraine, we investigate the performance of the individual ESG pillars using an event study methodology. We find that higher governance scores were associated with higher cumulative abnormal stock returns, possibly suggesting...