I investigate the role of moral hazard from government intervention on the risk-taking behavior of U.S. financial institutions prior to the 2008 financial crisis. I use cross-sectional variation in political connections to measure the effect of moral hazard. The central finding is a higher...

This paper examines the impact of investor heterogeneity on trading. Institutional investors play a crucial role in the information environment of firms. We argue that heterogeneity in the information ability of institutional investors has a significant impact on trading around information...

We investigate how institutional ownership affects the diffusion of innovation. We find that a higher intensity of patent citations among firms that share institutional owners. We address the potential endogeneity of common ownership using two approaches. First, we use regression discontinuity...