Consistent with theoretical predictions, we show that investors incorporate expected joint liquidation costs in their portfolio decisions. Using detailed security-level holdings of U.S. Money Market Mutual Funds (MMFs), we construct a new measure of portfolio similarity among investors and show...

Investment arbitration against Central and Central‐Eastern EU Member States is on the rise. A significant number of these claims are brought by EU investors despite the fact that the European Commission has opined that international arbitral tribunals established under these intra‐EU BITs...

This paper investigates the potential benefits of international diversification with short-selling constraints from the perspective of Chinese investors. Based on a stream of time-rolling realized portfolios, we show that Chinese investors can gain substantially in terms of portfolio risk...