Investor recognition affects cross-sectional stock returns. In informationally incomplete markets, investors have limited recognition of all securities, and their holding of stocks with low recognition requires compensation for being imperfectly diversified. Using the number of posts on the...

Mood is associated with investors' decision making and influences stock market performance, which is supported by psychological and financial researches. However, previous studies have not provided a strong evidence that their proxies can influence moods in an efficient way.We use data of...

The returns on bank stocks rise and fall with the business cycle, making bank equity financing cheaper in the boom and dearer during a recession. This provides support for prudential tools that give incentives for banks to build capital buffers at times when the cost of equity is lower. In...