Prior literature documents that short sale activity clusters around mandated short sale position disclosures. We investigate two competing hypotheses for this finding in the UK market: herding- versus information-based trading. First, using an entropy-balanced matched sample of stocks, we find...

An important determinant of belief polarization is the different interpretations of the same information. We examine whether discourse uncertainty in corporate disclosures, an important driver of differential interpretations, leads to polarization in financial markets. Using a novel measure of...

We conduct an experiment in the securities-based crowdfunding setting to investigate whether some investors avoid accounting information for psychological reasons, even when they understand the information is useful in their decision-making. Results suggest investors who experience relatively...

We investigate the impact of peer pressure on the characteristics of forward-looking disclosures. We identify plausibly exogenous variation in the amount of peer firm forecast news available when a focal firm issues its own forecast by employing a sample of firms that issue forecasts in...

We examine whether forecasters of earnings can be “nudged” into changing their forecasting behavior without altering their economic incentives or limiting their choices. We use a natural experiment on Estimize.com to quantify the effects of a nudge promoting a social norm of exerting one’s...

Purpose: Higher real earnings management (REM) reduces financial reporting quality and increases the uncertainty of future cash flows and profitability among investors. We assert that REM induced noise increases idiosyncratic return volatility (IVOL) and aim to examine the association between...

We examine the relation between a measure of managers’ physical display—body expansiveness—and favorable reporting practices (in firm forecasts and valuation information) and performance (survival and funding success). We videotaped 154 entrepreneurs pitching their business idea and use...

The SEC prohibits the presentation of non-GAAP measures before corresponding GAAP measures; however, a large proportion of non-GAAP reporters present non-GAAP EPS before GAAP EPS in their earnings announcements. This noncompliance raises questions about whether firms use prominence to highlight...

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...

Managers play a key role in firm information production. This paper studies whether managers withhold bad news from the public immediately after successful and failed terrorist attacks. Conditional on a place being targeted, the timing of the attack is largely random to firms headquartered in...