This study investigates how investor trading behavior affects audit pricing by examining mutual fund herding in specific. When mutual fund managers herd due to information cascade, mimicking incentive, or agency problem, it causes information friction and weakens their monitoring effectiveness....

This study examines the impact of institutional investors’ site visits on audit fees. Taking benefit of mandatory disclosure of investors’ site visits information of firms listed on the Shenzhen Stock Exchange (SZSE) in China, we find that firms with more institutional investors’ site...

The active mutual fund equilibrium model developed by Berk and Green (2004) predicts that fees should not matter for investors’ mutual fund choices. We examine how fees influence demand for active mutual funds by analyzing time variation in funds’ fees. Since investors should not pay "alpha...