Research shows that stocks with fluent names trade at higher prices. However, it is not clear whether fluency simply appeals to naive investors, or actually identifies better firms. In this paper, we disentangle these two explanations. Consistent with our theoretical model, we find that the...

This paper studies the added value of intentional style herding for mutual fund managers. We find that herding in styles is significant and persistent, especially for active funds. We also report that herding tends to increase after periods of high market volatility, and decrease with sentiment....

This paper investigates whether investor sentiment can explain stock return comovements. Our findings demonstrate that since the 1960s, there has been a clear and rapid increase in correlations between international equity markets. Decomposing the equity returns into fundamental and...

This paper examines the style-based feedback trading behavior of mutual fund managers. We provide an empirical version of the model for style-switching behavior of Barberis and Shleifer (2003). We find style-based feedback trading for 77% of the funds, half of which is positive- (negative-)...

This paper studies the extent of feedback trading at the style level by hedge funds from both a positive and a normative perspective. We show that hedge funds continuously adjust their exposure to different risk factors conditional on the recent performance of these styles. The majority of funds...

This paper uses the correlation of money flow among mutual funds to forecast the skewness of stock returns. We show that asset returns are highly negatively skewed when their mutual fund owners experience correlated liquidity shocks. In addition, stocks with high mutual fund ownership are more...