Institutional investments di ffer in several key aspects, including fi nancial sophistication and frequency of monitoring from retail mutual funds. This paper analyzes how this "e ffective governance" impedes tournament behavior. For mutual funds, it has been shown that relative "loser" managers...

This paper examines the relationship between stock and option markets around SEO events. We compare option-implied volatility and realized volatility to show that option markets do not fully predict risk dynamics following equity issues. Moreover, we show that straddle strategies that explore...

The objective of this study is to investigate the dynamics within merger waves. For a sample of 1025 bids that occur in 18 industry merger waves, we measure how the returns to bidders and rivals change, as a wave is ongoing. In the first half of a wave, bidders (rivals) experience an average...