Despite evidence of the importance of sleep for cognitive performance, prior research finds limited effects of sleep disruptions in financial markets. This is puzzling because financial decisions rely on higher-order cognitive processes that are typically affected by sleep. We reconcile this...

We examine the influence of institutional factors on herding behavior by exploring changes in security analysts’ institutional environments. Specifically, we identify analysts employed at privately held brokers subsequently acquired by a publicly listed institution (hereafter, “treated...

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...

In this paper, we identify a source of peer group influence that is plausibly orthogonal to information provision, yet nonetheless affects economic decision-making: the shock to an equity analyst of their undergraduate college football team winning the NCAA Championship Game. We find that...

We arranged for trained undercover men and women to pose as potential clients and visit all 65 local financial advisory firms in Hong Kong, China. At financial planning firms, but not at securities firms, women were more likely than men to receive advice to buy only individual or only local...

We study the relationship between partisan values and financial adviser misconduct. Using self-declared party affiliations from voter records as our proxy for individual values, we find that Republican advisers are 11% more likely to commit financial misconduct than other advisers at the same...

A significant proportion of sell-side analysts’ recommendation revisions are directionally inconsistent with their earnings forecast revisions. For example, analysts revise earnings forecasts upward (downward) while simultaneously downgrading (upgrading) the recommendation. Prior research is...

We analyze retail order flow in terms of intra-day feedback trading patterns. Using a unique data set of exchange trades and high-frequency quotes, we first provide evidence that retail investors actively and consciously respond to short-term intra-day returns in a negative feedback, contrarian...

Despite prior research documenting that firms led by narcissistic executives experience numerous detrimental effects, narcissists are more promotable, enjoy longer tenures, and earn higher compensation than their peers. These outcomes suggest firms accrue some benefits from executive narcissism....

We find that the salience distortions of past fundamental information significantly predict future analyst forecast errors in both Chinese and U.S. markets. Fundamental salience is more potent in distorting long-term beliefs. Predictable forecast errors are more pronounced in firms with opaque...