Examining a shock to the salience of the sustainability of the US mutual fund market, we present causal evidence that investors marketwide value sustainability. Being categorized as low sustainability resulted in net outflows of more than $12 billion while being categorized as high...

Research in consumer psychology is essential for developing a deep understanding of how consumers make financial decisions as well as for creating solutions to improve this process. Fortunately, there has been substantial growth in research in this area among consumer behavior scholars in recent...

Why do people fail to diversify risk in their investment portfolios? We study how lay investors (people with low financial literacy) invest in financial assets whose past or expected returns are provided. Although investing in assets with negatively correlated returns reduces portfolio risk...