Growth opportunity bias (GOB), measured as the difference between market and fundamental values of a firm's growth opportunity, has an ability to predict future stock returns. In the portfolio sort, downward-biased GOB firms earn higher returns than upward-biased GOB firms, which is unexplained...

Using U.S. state-level labor protection law as an exogenous shock, we find that the adoption ofthe law alleviates the wages pressure on highly leveraged firms, primarily due to employees’improved job security offered by the law. Particularly, our finding is more pronounced forfinancially...

Rationally justifying Bitcoin's immense price fluctuations has remained a persistent challenge for both investors and researchers in this field. A primary reason is our potential weakness toward robustly quantifying unquantifiable risks or ambiguity in Bitcoin returns. This paper introduces a...

Distinguished societal recognition can influence the behaviour of corporate decision-makers to act responsibly. We exploit this unique sociological attribute of board members of UK firms and examine the impact of the titles of honour on firms’ environment, social, and governance (ESG)...

The impact of sentiment on asset prices varies during periods of low and high ambiguity and risk and across countries. Examining stock market returns across twenty-nine countries, we show that the predictability of sentiment is more pronounced when ambiguity is low in Australia, Canada, Czech...