Since the 1990s there has been a surge in the mutual fund industry across the world. Mutual funds offer individual investors both the diversification of investment risk and the expertise to monitor corporate decisions. We find the effect of mutual fund ownership in reducing corporate fraud...

Can companies increase the liquidity of their shares through repurchases? On the one hand, the presence of informed insiders increases adverse selection costs; on the other hand, repurchasing firms increase the demand of shares and therefore improves the liquidity. This paper examines the...

The managers' pay-performance sensitivity (PPS) of closed-end funds is explicitly specified in the management contract as the marginal rate of funds' net asset value. By using the sample of US closed-end funds from 2006 to 2009, this paper investigates the relationship between the PPS and...

This paper examines the role of mutual funds in enhancing financial reporting quality in China. Mutual funds are more sophisticated and influential than individual investors. Therefore, they are expected to be more effective at preventing executives from expropriating investors and manipulating...