The financial media plays a critical role in financial markets as an information intermediary between information sources and information users. This chapter reviews the literature on the role of the media for financial decision-making, using a broad definition of media based on three key functions: 1) facilitating access to information, 2) filtering information, and 3) creating new informat…
Purpose – A separate study of the different behavioral biases does not allow for a full understanding of the complexity and stability of the heterogeneity of beliefs. Therefore, through a more global view of these anomalies, the authors wish to show that they can converge on a single concept, which is the heterogeneity of beliefs. Design/methodology/approach – It is therefore essential t…
I use large language models (LLMs) fine-tuned on financial texts to assess the readabil- ity and neutrality of mutual fund shareholder reports. A neutral tone typically predicts increased fund inflows, but this effect lessens with higher readability. When reports are highly readable, neutrality leads to outflows for outperforming funds and doesn’t boost inflows for underperforming one…