The first quarter of the year has been a busy one, with two papers submitted and two new working papers published. In “Trading frictions and the post-earnings-announcement drift“, Josef Fink, Erik Theissen and I study the effect of a short selling ban and transaction fees on the post-earnings-announcement drift. We find evidence for lower trading activity and higher asset prices in the presence of these types of frictions. In “A Critical Perspective on the Conceptualization of Risk in Behavioral and Experimental Finance“, Felix Holzmeister, Christoph Huber and I discuss the conceptualization of “risk” in finance, urging researchers to clearly distinguish between risk preferences, risk perceptions, and risk taking. I welcome all thoughts and comments on these papers and topics!
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