We study how climate risk shapes financial-reporting conservatism with data collected from 47 countries, and document that firms facing more extreme weather conditions use less unconditional conservatism but more conditional conservatism in financial reporting. Furthermore, such impacts of...

We provide a theoretical framework to examine how investor sentiment impacts the mean-variance tradeoff. We derive a sentiment-adjusted Markowitz efficient frontier in which investor sentiment alters the first two moments of asset returns, the minimum-variance frontier as well as the Capital...

We examine the return information conveyed by a firm’s dividend surprise, defined as the difference between a firm’s actual dividend per share (DPS) and investors’ expected DPS. We find that negative-surprise stocks (i.e., stocks in the lowest dividend surprise quintile) provide 5.64% more...