We use Regulation Fair Disclosure (REG FD) to examine a relatively neglected but important effect of disclosure regulation: externalities. REG FD applies to all publicly traded U.S. firms, but foreign firms cross-listed on U.S. stock exchanges are explicitly exempt. Despite the exemption, we...

This study investigates whether analysts who pay attention to investor sentiment issue more or less profitable stock recommendations than their peers. We find that analysts whose stock recommendations are positively correlated with recent or future investor sentiment tend to issue relatively...

This study investigates whether the U.S. Federal Reserve's balance sheet can be used to predict macroeconomic outcomes. The Federal Reserve writes its own accounting standards, and I recast portions of the Federal Reserve's weekly balance sheet as if it more closely followed Generally Accepted...

Using a sample of 75 countries, we show that foreigners invest less in U.S. stocks when investors are from countries with greater linguistic distance and when U.S. financial reports are more difficult to read. Our results suggest that linguistic distance and readability difficulty act as...