Investors may underreact when information arrives in small, continuous bits
Less sophisticated investors reveal their sentiment in certain trades, and a 20-year study measures it company by company
Do investors misprice assets, revise their risk appetite or make some other misjudgment?
Active investors take up some — but not all — of the slack created by index funds
The simplest explanation — “I can’t believe you know something I don’t” — may trump all the rest
How a localized flood may result in fewer loans to a far-off community
Analysis uses business credit card loans to gauge market perception
What happened when the Argentine government lied about inflation numbers?
With high-quality borrowers hard to judge from afar, Alt-A market offers quiet signal on creditworthiness
Decade-old bank-risk limits may have exacerbated liquidity problems
Stronger financial reporting standards seem to mean more for growth of countries’ credit markets than their stock markets
Henry Friedman’s research finds, surprisingly, that major economic news actually heightens attention paid to company announcements
As alternative pricing schemes proliferate, researchers examine beliefs about their fairness
Real-world bond data reveals how the capital positions and liquidity of middlemen affect prices of securities they broker
Equity volatility can encourage — or dampen — investment, depending on a firm’s bond spread
Valentin Haddad’s research finds that insurers’ patient investing shields risky assets — and those who hold them — from steeper declines