Corporate governance is concerned with the resolution of collective action problems among
dispersed investors and the reconciliation of conflicts of interest between various corporate …

We study the trading of individual investors using transaction data and identifying buyer-or
seller-initiated trades. We document four results:(1) Small trade order imbalance correlates …

Behavioral finance is the study of how psychology affects financial decision making and
financial markets. It is increasingly becoming the common way of understanding investor …

I study a model of strategic communication between an uninformed Receiver and an
informed but upwardly biased Sender. The Sender bears a cost of lying, or more broadly, of …

Research optimism among securities analysts has been attributed to incentives provided by
underwriting activities. We examine how analysts' forecast and recommendation optimism …

This paper studies a model of strategic communication by an informed and upwardly biased
sender to one or more receivers. Applications include situations in which (i) it is costly for the …

Because sell-side analysts are dependent on institutional investors for performance ratings
and trading commissions, we argue that analysts are less likely to succumb to investment …

Why do security analysts issue overly positive recommendations? We propose a novel
approach to distinguish strategic motives (eg, generating small-investor purchases and …

We study the effect of the Global Analyst Research Settlement and related regulations on
sell-side research. These regulations attempted to mitigate the interdependence between …

Regulators' interest in analyst reports stems from the belief that small investors are unaware
of the conflicts sell‐side analysts face and may, as a consequence, be misled into making …