We survey the theory and evidence of behavioral corporate finance, which generally takes
one of two approaches. The market timing and catering approach views managerial …

I demonstrate an important tension between acquiring information and incorporating it into
asset prices. As a salient case, I analyze algorithmic trading (AT), which is typically …

We find that firms are more likely to split their stock if their peer firms have recently done so.
The effect is comparable to an increase of 40–50% in the share price. Splitting probability is …

We propose and test a catering theory of nominal stock prices. The theory predicts that when
investors place higher valuations on low‐price firms, managers respond by supplying …

We investigate the price reaction of listed companies in response to blockchain-related
announcements. The average abnormal return based on a global sample of 713 firm …

We test the implications of anchoring bias associated with forecast earnings per share
(FEPS) for forecast errors, earnings surprises, stock returns, and stock splits. We find that …

Do stock prices of publicly listed companies respond to changes in transaction costs? Using
the SEC's pilot program that increased the tick size for approximately 1,200 randomly …

We explore the psychology of stock price levels and provide evidence that investors suffer
from a nominal price illusion in which they overestimate the room to grow for low-priced …

We investigate how and why relative tick sizes influence traders' order strategies, and how
this affects liquidity provision in the market. Using unique NYSE data, we find that a larger …

We hypothesize that investors partially think about stock price changes in dollar rather than
percentage units, leading to more extreme return responses to news for lower‐priced stocks …