Firm investment-stock price sensitivity declines in S&P500 index membership, consistent with indexing undermining the “feedback” channel. To address endogeneity, we show that non-indexed focal firm investment is less sensitive to stock prices of peer firms in the index. Results are...

We document a capital supply channel in the connections between firms' and their peers' SEOs. Financially constrained firms are more likely to do an SEO (have higher SEO hazards) when more of their peers conducted an SEO within the prior six months. Positive exogenous shocks to indexer equity...