It is well-documented that mutual fund flows are positively related to funds' past performance. This paper focuses on the time-series variation of the performance-flow relationship. I find that investors are more sensitive to fund performance in some periods than other periods and that the...

It is well-documented that mutual fund flows are positively related to funds' past performance. This paper focuses on the time-series variation of the performance-flow relationship. I find that investors are more sensitive to fund performance in some periods than other periods and that the...

Why did the failure of Lehman Brothers make the financial crisis dramatically worse? The financial crisis was a process of a build-up of risk during the crisis prior to the Lehman failure. Market participants tried to preserve an option or exit by shortening maturities - the "flight from...

This paper examines whether the sell-side research industry adds value to its mutual fund clients. I use a novel way to identify the broker-mutual fund network. I find that, within a mutual fund's portfolio, the stocks covered by the fund's brokers outperform the uncovered stocks by 6.3% per...