Research

My research focuses on Asset Pricing, Capital Market Efficiency, and Sustainable Finance.

Working Papers

• Investor Sentiment, Institutional Ownership, and Informational Efficiency of Prices
  Abstract
  We show that a stock's sensitivity to investor sentiment, measured by sentiment beta, significantly weakens the positive relation between institutional ownership and price efficiency. This impact of sentiment beta is more pronounced following optimistic periods, among overpriced stocks, and for active institutional ownership, confirming that sentiment beta acts as a binding arbitrage friction. We further show that this risk operates through two channels. First, only the sentiment-beta-orthogonal component of institutional ownership improves price efficiency, while the sentiment-beta-driven component does not. Second, institutions reduce both their holdings and trading in low-sentiment-beta stocks when sentiment exposure rises, precisely where their trading is most effective at reducing noise. Together, these channels create a self-reinforcing dynamic in which rising sentiment beta increases arbitrage risk, institutions disengage, and affected stocks are left with less informed participation and lower price efficiency. Our results are robust to alternative measures of efficiency, sentiment, and institutional activity, empirical specifications, and tests for reverse causality.
  Presentations: SFA Annual Meeting (Nov. 2025), FMA Europe Meeting (Jun. 2025), EFMA Annual Meeting (Jun. 2025)
• The Real Effect of Investor Disagreement
  Abstract
  This paper studies the impact of investor disagreement on the market feedback effect. We argue and show that disagreement contains useful private information for managerial learning, such that it is positively associated with investment-to-Q sensitivity. This impact is more pronounced when learning is more likely to occur, namely for R&D investment, for growth firms, and for firms that are less financially constrained. Our analysis based on a disagreement measure constructed from forecast revisions further substantiates this mechanism and helps mitigate reverse causality concerns. We also rule out the alternative explanation that disagreement merely reflects valuation uncertainty. Overall, the study provides evidence on the real effects of investor disagreement.
  Presentations: BAFA Annual Conference (Scheduled Apr. 2026), Adam Smith Business School PhD Brownbag Seminar (Oct. 2025)
• ESG Investing and Stock Price Informativeness
  Abstract
  This study examines the impact of environmental, social, and governance (ESG) investing on stock price informativeness (PI), using 53,188 U.S. stock-quarter observations from 1996 to 2020. Price informativeness, measured as the reduction in uncertainty about future earnings based on current prices, improves with higher ESG institutional ownership. The effect is more pronounced for firms with lower ESG performance and higher ESG disclosure quality. Mechanism analysis identifies two primary channels: improved information environments, indicated by increased analyst coverage and EDGAR search volume, and long-term ESG engagement, which promotes sustainable practices and reduces uncertainty. These findings contribute to the ongoing debate on ESG investing's market implications by providing evidence that ESG ownership enhances stock price informativeness, suggesting that ESG integration strengthens market efficiency and financial stability rather than distorting price signals.
  Presentations: SFA Annual Meeting (Nov. 2025), Adam Smith Business School PhD Brownbag Seminar (Nov. 2024)

Work in Progress

• More projects coming soon.