This paper questions the ascendance of U.S. private capital markets. Data on capital formation over the past decade (before the Panic of 2008) cast doubt on the story of capital users increasing their relative reliance on private capital. Further, the investment rules and culture) under which...

We find that institutional ownership in publicly traded companies is associated with more innovation (measured by cite-weighted patents). To explore the mechanism through which this link arises, we build a model that nests the lazy-manager hypothesis with career-concerns, where institutional...