This paper examines whether the negative association between aggregate earnings and returns is explained by the monetary policy news in aggregate earnings. Using Federal funds futures data to construct a measure of policy news, we find that aggregate earnings convey information about the Fed's...

We examine whether boardroom connections help managers identify non-fundamental price shocks. We find that managers of well-connected firms are less likely to cut investment in response to exogenous non-fundamental drops in stock prices. Moreover, firms with stronger corporate governance and...