This paper tests several predictions from an information diffusion framework in the quarterly earnings announcement setting. First, post-announcement drift is documented only for earnings announcements that have high information content (uncertainty), measured by high abnormal trading volume and...

We study financial reporting and disclosure practices in China using survey methods similar to prior studies of U.S. firms (i.e., Graham, Harvey, and Rajgopal, 2005; Dichev, Graham, Harvey, and Rajgopal, 2013). Comparing earnings features, motives to manage and smooth earnings, and voluntary...

Social skills are important but difficult to measure. So far, few empirical studies have examined the effect of social skills on the performance of professionals. Using the number of LinkedIn connections as a proxy for social skills, we investigate the effect of financial analysts’ social...

We extend the theory and empirics in Chen, Hong, and Stein (2002) by assuming that investors subject to market sentiment hold a biased belief in the aggregate. With a dynamic multi-asset model, we predict that the breadth-return relationship can be either positive or negative depending on the...

We investigate a sample of 50 firm-events, identified in the "Global Research Analysts Settlement", in which analysts were discovered to have acted misleadingly ex post. In this setting, analysts' incentives caused them to issue public disclosures that differed from their private beliefs. We...

Using alcohol, tobacco, and gaming consumption data and people’s attitudes toward these sin products to proxy for social norm acceptance levels, we show a strong interaction effect between social norms and financial incentives, which significantly influence the behavior of market participants....