This paper investigates the predictability of the firm news tone on stock return in Chinese market. We find that the news tone significantly positively predicts the cross-sectional future return in both short and long horizon. Beyond this, we generally find while the online news could predict...

Using the number of Robinhood users holding a firm’s shares, I examine how novice retail investors respond to earnings announcements and the implications of their responses for the price-earnings relation. I do not find evidence of informed trading among these investors. Changes in their...

This study investigates gender differences in analysts’ online corporate visits. Using a unique dataset of analysts’ online visits to Chinese firms listed on the Shenzhen Stock Exchange from 2018 to 2021, we show that female analysts’ participation is negatively associated with forecast...

Firms engaging in innovative practices have patents to prevent competitive forces from eroding the resulting economic rents; however, there is limited evidence regarding the impact of innovation on risk. We shed new light on how firms' involvement in innovation activities impacts their...

This study examines the impact of ChatGPT’s introduction on stock prices. Following the introduction, firms operating in industries with workforces more substitutable to AI techniques are associated with significantly negative stock returns. We attribute the negative share price reaction to...

In addition to regulation of securities market issuers, the Securities & Exchange Commission (SEC) is also responsible for regulation of those entities that provide the networks, either electronic or physical, that enable the functioning of our securities markets. On February 9, 2022, the...

This paper evaluates artificial intelligence's (AI's) foray into financial markets and the resultant implications for theory and practice. I argue for reevaluating mainstream financial theories and proactively building governance frameworks. I also advocate for external audits and oversight that...

This paper uses ChatGPT, a large language model, to extract managerial expectations of corporate policies from disclosures. We create a firm-level ChatGPT investment score, based on conference call texts, that measures managers’ anticipated changes in capital expenditures. We validate the...

We create a firm-level ChatGPT investment score, based on conference calls, that measures managers' anticipated changes in capital expenditures. We validate the score with interpretable textual content and its strong correlation with CFO survey responses. The investment score predicts future...

This paper analyses changes in the speed of labour demand for new hires in response to the lockdowns that were repeatedly put in place to contain the spread of the COVID-19 pandemic. It tests whether the uncertainty-reducing effect of similar lockdowns occurring in quick succession increased the...