This study documents a significant relation between changes in commodity prices and investors’ price sensitivity in the market for mutual funds. Specifically, price sensitivity⸺defined as the negative relation between fund-level flows and a fund’s cost of ownership⸺is more pronounced in...

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...