Research

Publications

1. Seeing is Believing: Tourism and Home Bias (with Constantinos Antoniou, Carina Cuculiza and Lizhengbo Yang). Journal of Banking and Finance, Forthcoming.

2. Investor Emotions and Asset Prices (with Shehub Bin Hasan and Richard Taffler). Financial Analysts Journal, Forthcoming.  

3. Temperature Sensitivity, Mispricing, and Predictable Returns (with Carina Cuculiza, Wei Xin, and Chendi Zhang). Management Science, Forthcoming. 

4. In-Group Bias in Financial Markets (with Sima Jannati, Alexandra Niessen-Ruenzi, and Justin Wolfers). Management Science, Forthcoming. 

5. Stock Market Ownership Transitions (with Yosef Bonaparte, George Korniotis, Alexander Michaelides, and Yuxin Zhang). Management Science, Forthcoming.

6. Firm-Level ESG Information and Active Fund Management (with Linquan Chen, Yao Chen, and Woon Sau Leung). Journal of Financial Intermediation, 60, # 101122.

7. Inflation, Monetary Policy, and Portfolio Decisions of U.S. Households (with Yosef Bonaparte, George Korniotis, and Melina Vosse). Management Science, 70 (9), 6438-6460. 

8. Skewness Sentiment and Market Anomalies (with Mehrshad Motahari and Richard Taffler). Management Science, 70 (7), 4328-4356. 

9. Discrimination and Economic Expectations (with William Bazley, Yosef Bonaparte, and George Korniotis). Management Science, 70 (6), 4115-4131. 

10. It Takes Two to Tango: Spousal Risk Preferences and CEO Risk-Taking Behavior (with Constantinos Antoniou, Carina Cuculiza and Lizhengbo Yang). Journal of Corporate Finance, 86, #102584. 

11. Geography of Firms and Propagation of Local Economic Conditions (with Gennaro Bernile, Stefanos Delikouras, and George Korniotis). Review of Financial Economics, 41(4), 437-464. 

12. Do Hedge Fund Managers Understand Politics? Political Sensitivity and Investment Skill (with Honghui Chen, Yan Lu, and Ajai Singh). Journal of Banking and Finance, 135, # 106371. 

13. Dividend Sentiment, Catering Incentives, and Return Predictability (with Zicheng Li and Chendi Zhang). Journal of Corporate Finance,72, # 102128.

14. Social Learning and Analyst Behavior (with Ville Rantala and Rosy Xu). Journal of Financial Economics, 143 (1), 434-461.

15. Searching for Gambles: Investor Attention, Gambling Sentiment, and Stock Market Outcomes (with Yao Chen and Chendi Zhang). Journal of Financial and Quantitative Analysis, 56 (6), 2010-2038. 

16. Terrorist Attacks, Analyst Sentiment, and Earnings Forecasts (with Constantinos Antoniou, Carina Cuculiza, and Anastasios Maligkris). Management Science, 67 (4), 2579-2608.

17. Local Bankruptcy and Geographic Contagion in Loan Characteristics (with Jawad Addoum, Nhan Le, and Alexandra Niessen-Ruenzi). Review of Finance, 24 (5), 997-1037.

18. Predicting Hedge Fund Performance When Fund Returns Are Skewed (with Andrea Heuson and Mark Hutchinson). Financial Management, 49 (4), 877-896. Lead article.

19. Big Fish in a Small Pond: Locally-Dominant Firms and the Business Cycle (with Sima Jannati and George Korniotis). Journal of Economic Behavior and Organization, 180, 219-240.

20. Investor Sophistication and Asset Prices (with George Korniotis and Jeremy Page). Review of Financial Economics, 38 (4), 557-579. Lead article.

21. Heterogeneous Beliefs and Return Volatility Around Seasoned Equity Offerings (SEOs) (with Ann Marie Hibbert, Qiang Kang, and Suchi Mishra). Journal of Financial Economics, 137 (2), 571-589.

22. Prozac for Depressed States? Effect of Mood on Local Economic Recessions (with Vidhi Chhaochharia and George Korniotis). Review of Financial Economics, 38 (2), 245-274. Lead article.

23. Under-reaction to Political Information and Price Momentum (with Jawad Addoum, Stefanos Delikouras, and Da Ke). Financial Management, 48 (3), 773-804. Second best paper award.

24. An Analyst by Any Other Surname: Surname Favorability and Market Reaction to Analyst Forecasts (with Jay Jung, Sonya Lim, and Choong-Yuel Yoo). Journal of Accounting and Economics, 67 (2-3), 306-335.

25. Income Hedging, Dynamic Style Preferences, and Return Predictability (with Jawad Addoum, Stefanos Delikouras, and George Korniotis). Journal of Finance, 74 (4), 2055-2106.

26. Mood, Firm Behavior, and Aggregate Economic Outcomes (with Vidhi Chhaochharia, Dasol Kim, and George Korniotis). Journal of Financial Economics, 132 (2), 427-450.

27. The Changing Landscape of Behavioral Finance (non-refereed review paper), Review of Financial Economics (Special Issue on Behavioral Finance), 37 (1), 3-5.

28. Has Local Informational Advantage Disappeared? (with Gennaro Bernile, Johan Sulaeman, and Qin Wang). Review of Financial Economics (Special Issue on Behavioral Finance), 37 (1), 38-60. Second best paper award.

29. Stature, Obesity, and Portfolio Choice (with Jawad Addoum and George Korniotis). Management Science, 63 (10), 3393-3413.

30. Network Analysis of Search Dynamics: {The Case of Stock Habitats (with Ashish Agarwal, Prabhudev Konana, and Alvin Leung). Management Science, 63 (8), 2667-2687.

31. Political Climate, Optimism, and Investment Decisions (with Yosef Bonaparte and Jeremy Page).  Journal of Financial Markets, 34, 69-94.

32. Co-Search Attention and Stock Return Predictability in Supply-Chains (with Ashish Agarwal, Prabhudev Konana, and Alvin Leung). Information Systems Research, 28 (2), 265-288.

33. Political Sentiment and Predictable Returns (with Jawad Addoum). Review of Financial Studies, 29 (12), 3471-3518.

34. Political Contributions and Analyst Behavior (with Danling Jiang and Kelvin Law). Review of Accounting Studies, 21 (1), 37-88.

35. Analysts, Macroeconomic News, and the Benefit of In-House Economists (with Artur Hugon and An-Ping Lin). Accounting Review, 91 (2), 513-534.

36. Gambling and Comovement (with Jeremy Page and Oliver Spalt). Journal of Financial and Quantitative Analysis, 51 (1), 85-111.

37. Local Business Cycles and Local Liquidity (with Gennaro Bernile, George Korniotis, and Qin Wang). Journal of Financial and Quantitative Analysis, 50 (5), 987-1010.

38. Political Values, Culture, and Corporate Litigation (with Irena Hutton and Danling Jiang). Management Science, 61 (12), 2905-2925.

39. What is in a Name? Mutual Fund Flows When Managers Have Foreign Sounding Names (with Alexandra Niessen-Ruenzi and Oliver Spalt). Review of Financial Studies, 28 (8), 2281-2321.

40. Home Away From Home: Economic Relevance and Local Investors (with Gennaro Bernile and Johan Sulaeman). Review of Financial Studies, 28 (7), 2009-2049.

41. Weather-Induced Mood, Institutional Investors, and Stock Returns (with William N. Goetzmann, Dasol Kim, and Qin Wang). Review of Financial Studies, 28 (1), 73-111.

42. Corporate Policies of Republican Managers (with Irena Hutton and Danling Jiang).  Journal of Financial and Quantitative Analysis, 49 (5-6), 1279-1310.

43. Deviations From Norms and Informed Trading (with Jeremy Page). Journal of Financial and Quantitative Analysis, 49 (4), 1005-1037.

44. Income Hedging and Portfolio Decisions (with Yosef Bonaparte and George Korniotis). Journal of Financial Economics, 113 (2), 300-324.

45. Information Acquisition and Confirmation Bias in Virtual Communities: Evidence from Stock Message Boards (with Bin Gu, Prabhudev Konana, JaeHong Park, and Raj Raghunathan). Information Systems Research, 24 (4), 1050-1067.

46. State-Level Business Cycles and Local Return Predictability (with George Korniotis).  Journal of Finance, 68 (3), 1037-1096.

47. Investor Sentiment and Return Comovements: Evidence from Stock Splits and Headquarters Changes (with Jeremy Page and Oliver Spalt). Review of Finance, 17 (3), 921-953.

48. Speculative Retail Trading and Asset Prices (with Bing Han). Journal of Financial and Quantitative Analysis, 48 (2), 377-404.

49. Political Activism, Information Costs, and Stock Market Participation (with Yosef Bonaparte). Journal of Financial Economics, 107 (3), 760-786.

50. Do Portfolio Distortions Reflect Superior Information or Psychological Biases? (with George Korniotis). Journal of Financial and Quantitative Analysis, 48 (1), 1-45. Lead Article.

51. Local Investors and Corporate Governance (with Vidhi Chhaochharia and Alexandra Niessen-Ruenzi). Journal of Accounting and Economics, 54 (1), 42-67, 2012.

52. Religious Beliefs, Gambling Attitudes, and Financial Market Outcomes (with Jeremy Page and Oliver Spalt). Journal of Financial Economics, 102 (3), 671-708, 2011.

53. Behavioral Biases of Mutual Fund Investors (with Warren Bailey and David Ng). Journal of Financial Economics, 102 (1), 1-27, 2011. Lead Article.

54. Do Behavioral Biases Adversely Affect the Macro-Economy? (with George Korniotis). Review of Financial Studies, 24 (5), 1513-1559, 2011.

55. Do Older Investors Make Better Investment Decisions? (with George Korniotis).  Review of Economics and Statistics, 93 (1), 244-265, 2011.

56. Self-Selection and the Forecasting Abilities of Female Equity Analysts, Journal of Accounting Research, 48 (2), 393-435, 2010. 

57. Idiosyncratic Volatility Puzzle: {Time Trend or Speculative Episodes? (with Alon Brav, Michael Brandt, and John Graham). Review of Financial Studies, 23 (2), 863-899, 2010.

58. Hard-To-Value Stocks, Behavioral Biases, and Informed Trading, Journal of Financial and Quantitative Analysis, 44 (6), 1375-1401, 2009.

59. Dynamic Style Preferences of Individual Investors and Stock Returns, Journal of Financial and Quantitative Analysis, 44 (3), 607-640, 2009. 

60. Who Gambles in the Stock Market?  Journal of Finance, 64 (4), 1889-1933, 2009. Top 25 cited articles in the Journal of Finance in the past 8 years. January 2018.

61. Equity Portfolio Diversification (with William Goetzmann). Review of Finance, 12 (3), 433-463, 2008.  Lead Article. Most cited Review of Finance paper of all time (as of November 2020).

62. How do Decision Frames Influence the Stock Investment Choices of Individual Investors? (with Sonya Lim). Management Science, 54 (6), 1052-1064, 2008.

63. Foreign Investments of U.S. Individual Investors: {Causes and Consequences (with Warren Bailey and David T. Ng). Management Science, 54 (3), 443-459, 2008.

64. Do the Diversification Choices of Individual Investors Influence Stock Returns?  Journal of Financial Markets, 10 (4), 362-390, 2007.

65. Retail Investor Sentiment and Return Comovements (with Charles Lee). Journal of Finance, 61 (5), 2451-2486, 2006.

66. Do Dividend Clienteles Exist? Evidence on Dividend Preferences of Retail Investors (with John Graham). Journal of Finance, 61 (3), 1305-1336, 2006.

67. Variations on the Theme of Scarf's Counter-Example (with Martin Shubik). Computational Economics, 24 (1), 1-19, 2004.  Lead Article.

68. A Computational Analysis of Core Convergence in a Multiple Equilibria Economy (with Martin Shubik). Games and Economic Behavior, 42, 253-266, 2003.

69. The Dow Theory: William Peter Hamilton's Track Record Re-Considered(with Stephen Brown and William Goetzmann). Journal of Finance, 53 (4), 1311-1333, 1998.  

70. FEVA (Feature Vector Analysis): Explicitly Looking for Structure and Forecastability in Time Series Data (with Victor E. McGee). Economic and Financial Computing, Winter 1996. 

Book Chapter

71. Cognitive Abilities and Financial Decisions (with George Korniotis), Behavioral Finance(edited by H. Kent Baker and John Nofsinger), Chapter 30, 559-576, John Wiley and Sons, 2010.

Working Papers

Revise and Resubmit

72. Star Firms, Information Externalities, and Predictability (with Vidhi Chhaochharia, Mehrshad Motahari, and Ville Rantala). Third round at Journal of Financial and Quantitative Analysis.  

73. Hispanic Culture, Stock Preferences, and Asset Prices (with Jawad Addoum, Carina Cuculiza, and Stuart Webb). Second round at Financial Management.  

74. Gambling in the Market? Accounting for the Financial Distress Puzzle (with Asad Kausar and Richard Taffler). Third round at Journal of Financial Markets.  

Papers Under Initial Submission   

75. Are Unpredictable Analysts More Informative? Forecast Error Predictability as an Analyst Characteristic (with Vidhi Chhaochharia, Ville Rantala, and Alan Zhang). 2022 Miami Behavioral Finance Conference, FIRS 2022. June 2025.  

76. Replicating Anomalies Using the Aggregate Average Method (with Jiaqi Guo, George Korniotis, and Peng Li). June 2025.  

77. Heterogeneity in Prenatal Adversity and Portfolio Decisions During Adulthood (with Oguz Ersan, Serif Aziz Simsir, and Vidhi Chhaochharia). June 2025.  

78. Fear of Death and Analyst Behavior (with Yiping Chen, Jinjun Ke, Bo Ning, and Shiyi Zhang). June 2025.

79. Blinded by Lottery Preferences? Earnings News, Gambling-Motivated Trading, and Informational Efficiency (with Vidhi Chhaochharia, Jiaqi Guo, and Xing Han). April 2025. 

Other Working Papers

80. Conflicting News (with Linquan Chen, Yao Chen, and Chendi Zhang). June 2025.

81. Learning About Income Inequality: Long-Run Evidence from Pay Ratio Disclosures (with Van Anh Tran and Chendi Zhang). June 2025. 

82. Information Processing Efficiency, Analyst Behavior, and Predictable Returns (with Hongwei Mo). June 2025.

83. The Inflation Gamble (with Yosef Bonaparte, George Korniotis, and Melina Vosse), October 2024. {\it 2026 AFA Meetings.}% ??

84. Negativity Bias, Social Media, and Analyst Behavior (with Ann Marie Hibbert, Qiang Kang, and Suchi Mishra). October 2024. % ??

85. Learning from Local Analysts (with Sohnke Bartram, Vidhi Chhaochharia, and Hongwei Mo). October 2024. % ??

Other Research Papers and Publications

86. Towards Understanding the Predictability of Stock Markets From the Perspective of Computational Complexity (with James Aspnes, David Fischer, Michael Fischer, and Ming Kao), Proceedings of the 12th Annual ACM-SIAM Symposium on Discrete Algorithms, January 2001. 

87. An Algorithm for Syntactic Pattern Recognition using the Extended Kalman Filter Formulation (with Prateek Aggarwal), Proceedings of the IEEE Conference on Man, Systems, and Cybernetics,October 1997.

88. Intelligent Control of Autonomous Dynamic Systems Using a Constrained Optimal Control Approach (with Sunil K. Singh), Proceedings of the IEEE Conference on Decision and Control,December 1993.