I show how funding costs to derivatives dealers' shareholders for carrying and hedging inventory affect mid-market derivatives prices. An implication is that some supposed "no-arbitrage" pricing relationships, such as put-call parity, frequently break down. I also explore the implications for...

We demonstrate that a broad set of asset pricing factors (anomalies) are significantly exposed to "noise trader risk," and the noise trader risk is priced in factor premia. We first confirm that mutual funds' flow-induced trades of factors are uninformed as they generate a large price impact on...

I demonstrate that skill and scale are mismatched among actively managed equity mutual funds. Many mutual fund investors confuse the effects of fund exposures to common systematic factors with managerial skill when allocating capital among funds. Active mutual funds with positive factor-related...

Trade credit can serve as a strategic tool for a supplier to influence retailer behavior in the product market. The unique structure of trade credit, a period of free financing followed by a high interest rate increases the cost of rolling over unsold goods making retailers more aggressive when...

This paper provides new causal evidence on the effects of gender congruence in the student-adviser relationship on three key student outcomes: (i) retention; (ii) grades; and (iii) post-graduation career outcomes. In so doing, we use unique administrative data from a selective liberal arts...