To understand the nature of hedge fund managers' skills, we study the implementation of risk arbitrage by hedge funds using their portfolio holdings and comparing them with those of other institutional arbitrageurs. We find that hedge funds significantly outperform a naive risk arbitrage...

Insiders must disclose indirect trades made through accounts they control, including family, trust, retirement, and foundation accounts. Trades made in these indirect accounts are more profitable than direct trades in the insider's own account. In addition, indirect trades better predict...

We test the association between CFO effort and the quality of public firms' financial information environments. We evaluate this relation using a measure of CFO leisure consumption – specifically, the amount of golf played – as an inverse proxy for effort. We find that CFOs consume more...

We examine the lottery characteristics of mutual funds. We proxy for lottery characteristics using past extreme daily returns within a month, or MAX. We find that high MAX funds underperform both in portfolio sorts and cross-sectional regression tests. This result suggests that the MAX effect...

We test the association between Chief Financial Officer (CFO) effort and the quality of public firms' financial information environments. We evaluate this relation using a measure of CFO leisure consumption – specifically, the amount of golf played – as an inverse proxy for effort. We find a...