This study investigates whether institutional bond blockholders (i.e., bond funds that hold more than 5% of a firm's outstanding bonds) impede firm innovative activities, and if they do, through which channels. We find that long-term bond blockholders do not discourage firms from conducting...

​This study examines the performance impact of the relative quality of a CEO's compensation peers (peers selected to determine a CEO's overall compensation) and bonus peers (peers selected to determine a CEO's relative-performance-based bonus). We use the fraction of peers with greater...

This study uses the method of Cremers and Petajisto (2009) to separate active institutional investors from passive ones and shows that only active institutional investors are able to alleviate the anomalous comovement of stock returns. Focusing on two events directly linked to the excess...

This paper examines whether one of the most important participants in the takeover market, the institutional investors of target companies, suffers from the disposition effect; and if so, how this selling bias influences the takeover outcomes. I report robust evidence that target institutional...

​This study investigates whether institutional bond blockholders (i.e., bond funds that hold more than 5% of a firm's outstanding bonds) impede firm innovative activities, and if they do, through which channels. We find that long-term bond blockholders do not discourage firms from conducting...

We develop a cost-benefit tradeoff model to explain corporate boards' decision whether to use compensation peer benchmarking. Peer benchmarking helps a board retain a talented but risk-averse CEO, but it weakens CEO incentives to exert effort. Consistent with high retention needs, benchmarking...

This study examines whether the flow volatility experienced by institutional investors affects firms' financing costs. Using Greenwood and Thesmar's (2011) stock price fragility, a proxy for firm exposure to its institutional investors' flow volatility, we find that firms with high stock price...

This paper studies the information content of a subtle writing style, the expression of confidence. We use unsupervised machine learning to generate new lexicons for three aspects of a writer's level of confidence in expressing opinions: certainty, intensity of expression, and emotional...

Investors are supposed to have greater incentive to vote responsibly when they hold large number of shares in a firm. However, using mutual fund voting records, we find that when funds hold more shares, they become more likely to vote for management, even when proposals may be damaging to...