Social ties between mutual funds and the companies in which they invest (investees) can both facilitate information transfers and encourage favoritism. Using the investment choices of mutual funds in China, we compare investment performance of holdings in companies that are socially connected to...

We examine how the managerial consumption of perquisites is determined and whether and how it impacts firm value. On the one hand, if the consumption of perks is a result of agency conflict, then it represents managerial excesses and is value-destroying. On the other hand, when the transaction...