In this study we examine the relation between corporate governance and institutional ownership. Our empirical results show that the fraction of a company's shares that are held by institutional investors increases with the quality of its governance structure. In a similar vein, we show that the...

Each year, the Investment Company Institute (ICI) conducts a telephone survey of US households to track households’ ownership of mutual funds and to gather information on their demographic and financial characteristics. The most recent survey was conducted from May to June 2021 and was based...

We examine whether bank connections via common mutual fund ownership serve as a contagion channel affecting the systemic risk of the banking system. We first document that the extent of a bank’s connection with other banks via common ownership increases its contribution to systemic risk. We...

Each year, the Investment Company Institute (ICI) conducts a telephone survey of US households to track households’ ownership of mutual funds and to gather information on their demographic and financial characteristics. The most recent survey was conducted from May to June 2022 and was fielded...

Each year, the Investment Company Institute (ICI) conducts a telephone survey of US households to track households’ ownership of mutual funds and to gather information on their demographic and financial characteristics. The most recent survey was conducted from May to June 2020 and was based...

We develop a 10K-based measure of spatial variation in the availability of value-relevant information that reflects the multi-dimensional nature of firm location. Spatially distributed information generates location-based information asymmetries that affect institutional portfolio decisions and...

Using a novel database, we show that the stock-price impact of analyst trade ideas is at least as large as the impact of stock recommendation, target price, and earnings forecast changes, and that investors following trade ideas can earn significant abnormal returns. Trade ideas triggered by...

Why do investors entrust active mutual fund managers with large sums of money while receiving negative excess returns on average? Our explanation is that investors have a coarser information set than fund managers which leads them to systematically misinterpret managers' skill. When investors...

This paper studies the flow-performance relationship of three different investor groups in mutual funds: Households, financial corporations, and insurance companies and pension funds, establishing the following findings: Financial corporations have a strong tendency to chase past performance and...

We provide a rationale for window dressing where investors respond to conflicting signals of managerial ability inferred from a fund's performance and its disclosed portfolio holdings. We contend that window dressers take a risky bet on their performance during a reporting delay period, which...