Between 1993 and 2004, the share of mutual funds disclosing manager names to their investors fell significantly. We argue that the choice between named and anonymous management reflects a tradeoff between the marketing benefits of naming managers and the costs associated with their increased...

Traditional portfolio balance theory derives a downward sloping currency demand function from limited international asset substitutability. Historically, this theory enjoyed little empirical support. We provide direct evidence by examining the exchange rate effect of a major redefinition of the...

We study holdings in Mamp;A targets by financial conglomerates which affiliated investment banks advise the bidders. We show that advisors take positions in the targets before Mamp;A announcements. These stakes are positively related to the probability of observing the bid and to the target...

We study the impact of quot;style investingquot; on the market for corporate control. We argue that a firm may boost its market value by merging with a firm that belongs to an investment style that is more popular with the market. By using data on the flows in mutual funds, we construct a...

We study the strategies of the market in the inter-dealer market. We show that market makers actively learn from the dealers they trade with and strategically react to the information content of the orders they receive. We identify quot;hidingquot; and quot;experimentingquot; as main types of...

We study IPOs by focusing on the degree of portfolio diversification of the shareholders taking the company public. We argue that a less diversified shareholder has more to gain from taking the company public and would be more willing to accept a lower price for the sale of its shares, i.e....

We study how the introduction of a defined contribution market based retirement system affects the propensity of the investor to participate in the stock market. By using data on the quot;Swedish experimentquot;, we focus on the decision to invest directly in stocks and we see how it changes...

We study the impact of menu representation on portfolio choice and we show that investors choose assets as a function of the way they are represented in the menu available to them. We use the choices of mutual funds for retirement accounts of the Swedish population. We show that investors prefer...

Using a large sample of US active equity mutual funds from 1983 to 2001, we show that portfolio liquidity is actively managed and chosen as a function of the multiple liquidity needs a fund has. Using portfolio liquidity as a parsimonious proxy for the severity of liquidity needs, we find that...

We focus on an exogenous event that changes the cost of equity of the firm - the addition of its stock to the Samp;P 500 index - and we use it to test capital structure theories in a controlled experiment, where the effect of the index addition on the stock price is exogenous from a manager's...