I show that variation in economy-wide uncertainty causes asymmetric stock price responses to firm earnings surprises. The uncertainty that attends bad earnings news that arrives during expansions with greater economy-wide uncertainty occasions larger price declines. This is because news...

We examine how analysts' changing incentives driven by changes in market uncertainty affect analyst output, under a simple utility-maximizing framework. Analysts issue more optimistically biased forecasts and buy recommendations under high market uncertainty (VIX). The lower reputational costs...

Consistent with Bayesian learning models, I find that two types of uncertainty—market uncertainty and firm-signal uncertainty—have opposite effects on investors' learning from new information. I provide novel evidence that investor learning increases with the level of prior market...

We document that regulatory enforcement actions for financial misrepresentation cluster in industry-specific waves and that wave-related enforcement has information spillovers on industry peer firms. Waves and spillovers have significant effects on share prices. Early-wave target firms have the...

This study proposes that the performance of mutual fund managers is linked to how efficiently they allocate attention across assets in their investment set. Motivated by existing models of optimal portfolio choice and rational inattention, we posit that the efficiency of attention allocation...