Event study methodology has been one of the most frequently used tools in financial
research in recent years. This study provides a review of the present state of knowledge and …

I provide a synthesis of the Behavioural finance literature over the past two decades. I review
the literature in three parts, namely,(i) empirical and theoretical analyses of patterns in the …

We identify a group of “suspicious” firms that use stock splits, perhaps along with other
activities, to artificially inflate their share prices. Following the initiation of suspicious splits …

We propose a theory of securities market under‐and overreactions based on two well‐
known psychological biases: investor overconfidence about the precision of private …

This paper models firms' choices between alternative means of presenting information, and
the effects of different presentations on market prices when investors have limited attention …

This paper suggests some of the ways in which corporate financial policy depends on the
role of non-investor stakeholders. The key to our analysis is recognizing that the firm sells its …

The basic paradigm of asset pricing is in vibrant flux. The purely rational approach is being
subsumed by a broader approach based upon the psychology of investors. In this approach …

This paper tests whether the “disposition effect,” that is the tendency of investors to ride
losses and realize gains, induces “underreaction” to news, leading to return predictability. I …

One version of the consumption-based asset pricing model implies a linear relation between
expected returns and expected consumption growth. This paper provides evidence that the …

We develop a model in which the dependence of the brokerage commission rate on share
price provides an incentive for brokers to produce research reports on firms with low share …