This paper reviews the literature examining how costs of monitoring for, acquiring, and
analyzing firm disclosures–collectively,“disclosure processing costs”–affect investor …

Behavioral finance studies the application of psychology to finance, with a focus on
individual-level cognitive biases. I describe here the sources of judgment and decision …

We document the capability of large language models (LLMs) like ChatGPT to predict stock
price movements using news headlines, even without direct financial training. ChatGPT …

This paper investigates whether retail investor attention promotes or inhibits corporate green
innovation. Using Chinese nonfinancial public listed firms from 2011 to 2020, we find that …

We investigate whether environmental, social, and governance (ESG) ratings predict future
ESG news and the associated market reactions. We find that the consensus rating predicts …

Inattention is a central, unifying theme for much of behavioral economics. It permeates such
disparate fields as microeconomics, macroeconomics, finance, public economics, and …

We examine the relationship between investor attention, and measures of uncertainty, with
the market dynamics of Bitcoin and other cryptocurrencies. We find that increases in investor …

Robinhood investors increased their holdings in the March 2020 COVID bear market,
indicating an absence of collective panic and margin calls. This steadfastness was rewarded …

We document a rapid increase in retail trading in options in the United States. Facilitated by
payment for order flow (PFOF) from wholesalers executing retail orders, retail trading …

We propose a theoretically motivated factor model based on investor psychology and
assess its ability to explain the cross-section of US equity returns. Our factor model …