Using harmonized wealth data and a novel decomposition approach, we show that cohort effects exist in the income profiles of asset and debt portfolios for a sample of European countries, the U.S. and Canada. We find that younger households' participation decisions in assets are more responsive...

We investigate whether immigration induced fear sentiments affect the investment decisions of institutional investors. Using a text-based measure of immigration fear and data from four developed economies, we show that higher immigration fear sentiments trigger institutional investors to divest...

In recent years, the green bond market has seen significant growth as a means of financing environmentally friendly projects. However, while much research has focused on pricing, little attention has been given to the investors who hold these bonds. This paper uses a preferred habitat framework...

Using novel daily holding data for exchange-traded funds (ETFs), I identify three types of ETFs that adopt distinct approaches to rebalancing their portfolios, which generates meaningful return heterogeneity. First, 56% of ETFs track public indices that pre-announce their rebalances, and they...

Are portfolio managers skilled or do they trade too much? Using a marked-to-market based“fair-value” method for measuring fund manager skill, we find that institutional managers canpotentially earn +42 (+33) basis points benchmark-adjusted return before transaction costs aftera holding...

The HODL ideology overgeneralizes the buy-and-hold strategy for risky assets, leading to potential harm in investor wealth accumulation and investor-advisor relations. It originates from misunderstandings of financial theories, empirical evidence, technical analysis, and market timing. I provide...

This paper studies whether green investors can influence corporate greenhouse gas emissions through capital markets, either by divesting their stock and limiting polluters' access to capital, or holding polluters' stock and engaging with management. We focus on public pension funds, classifying...

This paper studies whether green investors can influence corporate greenhouse gas emissions through capital markets, either by divesting their stock and limiting polluters' access to capital, or holding polluters' stock and engaging with management. We focus on public pension funds, classifying...

This paper explores the time-varying institutional investor preference for lottery-like stocks. On average, institutional investor holdings reflect an aversion to lottery-like stocks. However, I find that an institutions' aversion to lottery-like stocks is reduced when investor sentiment is low....

We examine institutional investors' tendency not to change their portfolio for an extended period, called portfolio inertia. Studying over 39 million investor-stock-quarter observations, we document that institutional investors do not trade a single share in one of five stocks in their portfolio...