In this study, we examine the effect of investor sentiment on the stock market reaction to earnings news (i.e., the earnings response coefficient or ERC) for loss firms. We find that the ERC for loss firms' earnings increases is less positive as sentiment increases, contrary to the findings in...

A low-interest rate environment induces higher demand for income-generating assets, such as high-dividend stocks and high-coupon bonds. In this paper, we explore the impact of this “reaching-for-income” phenomenon on fund flows of corporate bond mutual funds. We find that high...

We examine whether, and to what extent, investors focus on salient and easy-to-process features in responding to analyst forecasts. We focus on rounding as arguably the most salient forecast feature. We find that while rounding is only marginally associated with forecast accuracy, investors...