We examine the costs of trading restrictions by exploiting an SEC rule change that eliminates a 60-day restriction period in private placements for small issuers. Using a difference-indifferences specification, we find that the restriction is binding, as turnover increases by 30% following its...

We test whether bank loans change public bond yields. A 10% increase in bank debt raises bond yields by 15bps, reflecting a trade-off between the benefits of bank cross-monitoring and higher bond risk. This effect is smaller for firms with no CDS and junk debt, where bank monitoring is most...

One in three deals in the early-stage financing market involves an investor and founder from the same alma mater. We show that founders' connections to early-stage investors through shared education networks are more important than school academic quality or shared geography in facilitating...

Do corporate control transactions discipline the labor force? We use the investment advisory industry as a laboratory to test for evidence of improvements in employee misconduct following M&A events ("misconduct synergies"). Consistent with synergies, we find that new disclosures of employee...

I study broker intermediation in entrepreneurial financing. Brokers intermediate 15% of startup offerings, but 20% of these brokers are unregistered "finders." Issuers using finders are 30% and 20% less likely to have successful post-funding outcomes than issuers in registered-broker and direct...

We study the relationship between buyout and venture capital (VC) funds' returns, and more typically available proxies - exits via M&A or IPO. We further explore the effects of filters on the selection of M&As and IPOs (to emphasize successes), on the relationship. We show that some of these...

Black- and Hispanic-owned funds control a very modest share of assets in the private capital industry. We find that the sensitivity of follow-on fundraising to fund performance is greater for minority-owned groups, particularly for underperforming groups. We find little support for a number of...

We study the sources of cross-sectional variation in the performance of first-time venture capital (VC) fund partners (GPs). We find that, relative to GPs with startup experience (creators), GPs with VC experience (managers) are at least 20 percent more likely to invest in successful deals or...

Black- and Hispanic-owned funds control a very modest share of assets in the private capital industry. We find that the sensitivity of follow-on fundraising to fund performance is greater for minority-owned groups, particularly for underperforming groups. We find little support for a number of...