Behavioral finance tries to make sense of financial data using models that are based on
psychologically accurate assumptions about people's beliefs, preferences, and cognitive …

Consistent with predictions from the psychology literature, we find that stock prices co-move
more (less) in culturally tight (loose) and collectivistic (individualistic) countries. Culture …

This study shows that weather-based indicators of mood impact perceptions of mispricing
and trading decisions of institutional investors. Using survey and disaggregated trade data …

We find that firms are more likely to split their stock if their peer firms have recently done so.
The effect is comparable to an increase of 40–50% in the share price. Splitting probability is …

We hypothesize that a source of commonality in a stock's liquidity arises from the correlated
liquidity demand of the stock's investors. Focusing on correlated trading of mutual funds, we …

We investigate whether stock betas vary with the release of firm-specific news. Using daily
firm-level betas estimated from intraday prices, we find that betas increase on earnings …

We employ a wavelet approach and conduct a time-frequency analysis of dynamic
correlations between pairs of key traded assets (gold, oil, and stocks) covering the period …

We propose and test a catering theory of nominal stock prices. The theory predicts that when
investors place higher valuations on low‐price firms, managers respond by supplying …

We hypothesize that when investors pay less attention to financial markets, they rationally
allocate relatively more attention to market-level information than to firm-specific information …

The second Emerging Scholars Conference in Banking and Finance took place at Cass
Business School, City University, London, on 9 December 2010. It was jointly organised by …