Using a large sample of transaction-level institutional trading data, we investigate the role of institutional investors around the 9/11 terrorist attacks, a sudden exogenous catastrophic shock to financial markets. We find that institutional investors remain net buyers amid large market-wide...

We examine the impact of social ties between mutual fund managers and auditors of public firms on mutual fund stockholdings. We find that mutual funds whose managers are socially connected with firm auditors hold more shares of these firms. In cross-sectional results consistent with...