We study the link between portfolio choice and different college-based interaction – defined as the one that relates the portfolio choice of an investor to that of the other investors who went to the same college. We explain it in terms of a common cultural imprinting and the development of...

We propose that the presence of short-term investors, such as short sellers, does not necessarily enhance short-termism. On the contrary, based on a sample of 11,969 firms across 33 countries over the 2003-2009 period, we observe that the threat of short selling increases long-term (i.e., R&D)...

We propose that the presence of short-term investors, such as short sellers, does not necessarily enhance short-termism. On the contrary, based on a sample of 11,969 firms across 33 countries over the 2003-2009 period, we observe that the threat of short selling increases long-term (i.e., R&D)...

We hypothesize that trust plays an important role in affecting the activeness and effectiveness of the global mutual fund industry. Empirically, trust is positively associated with the activeness of domestic funds, whereas for internationals mutual funds conducting cross-border investments...

We hypothesize that age similarity among small shareholders acts as an implicit coordinating device for their actions, and thus may represent an indirect source of corporate governance in firms with dispersed ownership. We test this hypothesis on a sample of Swedish firms during the 1995-2000...

Using a novel data of institutional investors' bond holdings, we examine a transmission of the crisis of 2007-2008 from the securitized bond market to the corporate bond market via joint ownership of these bonds by investors. We posit that, ceteris paribus, corporate bonds held by investors with...

We study the value of stock liquidity in the market for corporate control and show that the target firm's liquidity has an impact on the transaction itself as well as on the resulting merged entity. We use a sample of US M&A transactions 1987 through 2007 to show that acquiring a more liquid...

We examine international bond issues by US firms to study the benefits of investor taste for cross-border security issuances. We proxy for firms' international investor taste with the fraction of prior international bond holding in firms' domestic and international bonds and find that...