We investigate the motivations and effects of financial firms' hiring of former U.S. financial regulatory employees. The number of top executives with regulatory experience per firm has increased 24% over 2001-2015, and hiring is associated with positive average announcement returns and a salary...

We provide novel evidence supporting the notion that arbitrageurs can contribute to return comovement via ETF arbitrage. Using a large sample of U.S. equity ETF holdings, we document the link between measures of ETF activity and return comovement at both the fund and the stock levels, after...

We design a new test for diseconomies of scale at the mutual fund level, and document that quarterly changes in fund performance are negatively related to lagged predicted fund flows. The effect is economically and statistically significant for both inflows and outflows. Results hold for factor...

Private equity firms have discretion over the timing of their funds' capital calls and distributions, making the popular internal rate of return (IRR) an incomplete measure of private equity fund performance. Do investors avoid the textbook pitfalls of the IRR when cash flow timing is partly...

Leveraged buyouts allow for a separate identification of sponsor reputation and underlying firm quality and their effects on capital structure choices. In 616 U.S. LBOs for which we can reconstruct financing activity, we find that the average LBO issues an average of 1.16 additional debt...