This paper studies the effect of sentiment on asset prices during the 20th century (1905 to
2005). As a proxy for sentiment, we use the fraction of positive and negative words in two …

We exploit a novel natural experiment to establish a causal relation between media attention
and consumer investment behavior, independent of the conveyed information. Our findings …

We show that media coverage of mutual fund holdings affects how investors allocate money
across funds. Fund holdings with high past returns attract extra flows, but only if these stocks …

An authoritative graduate textbook on information choice, an exciting frontier of research in
economics and finance Most theories in economics and finance predict what people will do …

Firms sharing a board member with a media company receive more news coverage. This in
turn affects those firms' financing choices: they issue more bonds, rely less on bank loans …

Market-wide attention-grabbing events—record levels for the Dow and front-page articles
about the stock market—predict the trading behavior of investors and, in turn, market returns …

We document significantly lower inflows in female-managed funds than in male-managed
funds. This result is obtained with field data and with data from a laboratory experiment. We …

The unique characteristics of the US initial public offering (IPO) process, particularly the strict
quiet period regulations, allow us to explore the effects of media coverage when the …

Several papers use a fractional specification (net inflow/assets under management) to infer
a convex relation between flow and past performance. However, heterogeneous linear …

We show that name-induced stereotypes affect the investment choices of US mutual fund
investors. Managers with foreign-sounding names have about 10% lower annual fund flows …