We investigate the role of mutual fund flows in incorporating market sentiment into asset prices. We show that retail investors adjust their investments among mutual fund categories in response to changes in market sentiment. Consistent with sentiment-induced price pressure through fund flows,...

Investor recognition affects cross-sectional stock returns. In informationally incomplete markets, investors have limited recognition of all securities, and their holding of stocks with low recognition requires compensation for being imperfectly diversified. Using the number of posts on the...

Mood is associated with investors' decision making and influences stock market performance, which is supported by psychological and financial researches. However, previous studies have not provided a strong evidence that their proxies can influence moods in an efficient way.We use data of...