We explore whether banks learn from past experience and modify their risk culture. Evaluating bank risk culture during the 2014 energy crash fueled by excessive bank lending, we find banks with a quick recovery after the 2007 subprime crisis find it unnecessary to change their risk culture, and...

Purpose: The purpose of this paper is to investigate the impact of January sentiment on investors’ asset allocation decisions in the US corporate bond market during the rest of the year. Specifically, the study evaluates if the shift in January sentiment is a predictor of corporate bond...

The active investor attention literature assumes that active retail investor attention drives retail investor base and therefore, stock demand and stock returns. We aim to provide empirical support for these critical assumptions the literature largely relies on. Utilizing Robinhood investor data...

We provide empirical support for the vast investor attention literature assuming that active retail investor attention is a proxy for stock visibility, impacting retail investor base and subsequently, stock demand and stock returns. Utilizing Robinhood investor data to measure retail investor...

Purpose: This paper aims to investigate the political cost hypothesis and the effects of political sensitivity-induced governance in the US bond market by using yield spreads from bonds issued by a diverse sample of US government contractors. Design/methodology/approach: Fixed effects...

Purpose: This study disentangles the investor-base effect and the information effect of investor attention. The former leads to a larger investor base and higher stock returns, while the latter facilitates the dissemination of information among investors and impacts informational trading....