What is the information content of news-based measures of sentiment? How are they related to economic fluctuations? I construct a sentiment index by measuring the net amount of positive expressions in the full corpus of Economic news articles produced by Reuters covering 12 countries over the...

This essay advances three theses. First, in Kiobel, a case about the Alien Tort Statute (ATS) of the United States, Justices of the United States Supreme Court employ policy arguments in addition to legal arguments. Second, Justices in Kiobel draw on the emotional appeal of the idea that the...

We provide evidence that higher-quality disclosure standards are associated with stock returns that are less sensitive to noise driven by investors' moods. We identify return-mood sensitivity (RMS) based on the association between index returns and urban cloudiness, a source of short-term...

Is over-optimism about a country's future growth perspective good for an economy, or doesover-optimism also come with costs? In this paper we provide evidence that recessions, fiscalproblems, as well as Balance of Payment-difficulties are more likely to arise in countrieswhere past growth...

Is over-optimism about a country's future growth perspective good for an economy, or does over-optimism also come with costs? In this paper we document that recessions, fiscal problems, as well as Balance of Payment-difficulties are more likely to arise in countries where past growth...

We explore the impact of media content on sovereign credit risk. Our measure of media tone is extracted from the Thomson Reuters News Analytics database. As a proxy for sovereign credit risk we consider Credit Default Swap (CDS) spreads, which are decomposed into their risk premium and default...