We analyze the risk and return characteristics across firms sorted by their environmental and social (ES) ratings. We document that ES ratings have no significant relationship with average stock returns or unconditional market risk. Stocks of firms with higher ES ratings do have significantly...

We analyse the risk and return relationship of firms sorted by environmental and social (ES) ratings. We document that ES ratings do not have a statistically significant relationship with either average stock returns or unconditional market risk measures. Firms with high ES ratings have...

We analyse the risk and return relationship of firms sorted by environmental and social (ES) ratings. We document that ES ratings do not have a statistically significant relationship with either average stock returns or unconditional market risk measures. Firms with high ES ratings have...

What are the implications of rational inattention for the effects of public information on individual behavior and in turn welfare? I examine the impact of rational inattention to public information in the "beauty contest" model of Morris and Shin (2002). I show that with information processing...

In models with heterogeneous beliefs, we cannot analyze policy interventions using standard methods of welfare economics. We develop a novel way of assessing welfare in such models, building on risk sharing rather than the Pareto property as the concept of efficiency. Differences of opinion...

We exploit heterogeneity in decreasing returns to scale parameters across funds to analyze their effects on capital allocation decisions in the mutual fund market. We find strong evidence that steeper decreasing returns to scale attenuate flow sensitivity to performance, which has a large effect...

Belief disagreement generates a fundamental tension between two desirable features of a resource allocation: Pareto optimality and risk sharing. While Pareto optimality generally opposes restrictions to trade, a growing literature rejects it in the presence of heterogeneous beliefs and proposes...

We study the consequences of reported social misconduct for YouTube streamers. Using a staggered difference-in-differences approach, we find that YouTube channels of streamers who are found to have misconducted themselves experience significant drops in both subscription and viewership. Such...

We estimate a model in which Bayesian investors learn about parameters governing mutual fund performance in real time and competitively allocate capital to funds, conditional on their current beliefs. The model-implied aggregate allocation of capital in response to the history of observed...

These draft “Rules of Procedure” is to implement the draft Agreement on the Establishment of the Asia-Pacific Regional Mediation Organization (the ARMO Agreement). In order to have a friendly, swift and peaceful settlement of dispute under the ARMO, the mediation rules are of critical...