Senior Fellows/Fellows

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Senior Fellows/Fellows

We test the hypothesis that retail investors' attraction to lottery stocks induces overvaluation, and is amplified by high attention and social interactions. The lottery premium (negative abnormal returns) is stronger for high-retail-ownership stocks—especially those that also have high analyst co...
Keywords: Preference for lottery-like stocks, investor attention, social interactions, social network, MAX, skewness, retail investors
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Annual Conference

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Investment Finance

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May 2018

We find that people revise their beliefs about climate change upward when experiencing warmer than usual temperatures in their area. Using international data, we show that attention to climate change, as proxied by Google search volume, increases when the local temperature is abnormally high. In fin...
Keywords: Global warming, Climate Change, Financial markets, stocks
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Annual Conference

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Investment Finance

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May 2021

Exploiting a screen display feature whereby the order of stock display is determined by the stock listing codes, we lever a novel identification strategy and study the impact of attention spillover on stock prices and turnover. We find that stocks with neighbors on the display that experience higher...
Keywords: limited attention, overconfidence, attention spillover, price impact, return predictability
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Annual Conference

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Corporate Finance

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May 2016

This paper provides evidence on the importance of complementarities in production within executive teams. Using data on top managers in large U.S. firms, I find that the managerial labor market is characterized by the high degree of within-firm positive sorting, which implies that better managers ar...
Keywords: Managerial talent, complementarities in production, assortative matching, executive compensation, director compensation, structural estimation
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Specialty Conference

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Specialty Conference

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Sep 2020

Infrastructure is essential to alleviate poverty and generate long-term growth in emerging markets and developing counties (EMDEs). Nevertheless, financing of infrastructure in EMDEs is faced with pressure on increasing government deficits, issues of transparency, and high financing cost, as well as...
Keywords: infrastructure finance, Blockchain, asset tokenization, public-private partnerships, emerging markets and developing economies
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