This study examines the effect of locally informed investors on market efficiency and stock prices using large power outages, which are exogenous events that constrain trading. Turnover in stocks headquartered in a outage area with 0.5% of U.S. electrical customers drops by 3-7% on the first...

The number of U.S. publicly traded firms has halved in 20 years. How will this shift in ownership structure affect the economy's externalities? Using comprehensive data on greenhouse gas emissions from 2007-2016, we find that independent private firms are less likely to pollute and incur EPA...

I test whether social influence affects individual investors' trading and stock returns. In each of the 20 most active stocks in Finland over nine years, the number of owners in a municipality multiplied by the number of investors who do not own a stock, a measure of the rate of transmission of...

A large literature finds evidence that pricing kernels nonparametrically estimated from option prices and historical returns are not monotonically decreasing in market index returns. We argue that existing estimation methods are inconsistent and propose a new nonparametric estimator of the...