This study tests catering theory of dividend policies in twenty-one countries from 1991 to 2017. First, we show that there are important differences in corporate dividend policies across countries. Second, we find that the catering incentive is stronger when investor sentiment is low. Third,...

We propose a non-parametric method based on a model-free formula to evaluate the tails of a risk-neutral distribution using the full cross-section of option prices at a fixed horizon. The method leads to the joint estimation of risk-neutral tail probabilities and tail expectations beyond the...

We exploit the merger between BlackRock and Barclays Global Investors to study how changes in expected ownership concentration affect the investment behavior of funds and the cross-section of stocks worldwide. We find that funds with open-end structures and a large exposure to commonly-held...