Abstract Institutional investors can be segmented into that hold simple portfolios of traditional equities and bonds, manage complex strategies in public private markets. Investors implementing active portfolio management holding diversified bonds are more likely to invest alternative asset classes. The performance institutional assets is significantly lower than equities, suggesting accept ret...

ABSTRACT We investigate how mutual funds with environmental, social, and governance (ESG) objectives vote on shareholder proposals related to executive compensation. Using a sample of 94,695 votes by 2,354 from 2012 2021, we find ESG are 9.4 percent more likely than non-ESG in favor such proposals, the likelihood increases 19.2 for aligning compensation environmental social (ES) objectives. als...

This paper examines the extent to which financial development and financial structure may explain cross-country diffusion of information communication technology (ICT). Using panel data for 76 emerging and advanced countries for the period 1990–2003, it finds that credit and stock market development tends to foster ICT diffusion, but financial structure does not appear to have any significant r...

Agency conflicts can arise when a fund manager also chairs the board of the fund. We examine the consequences of this fund manager duality using a broad sample of single managed US equity funds. We find that duality managers significantly underperform non-duality managers. This underperformance results from duality funds in the bottom performance quintile. This suggests that duality managers ca...

Pension Plan Characteristics and Framing Effects in Employee Savings Behavior In this paper we document the importance of framing effects in the retirement savings decisions of college professors. Pensions in many post-secondary institutions are funded by a combination of an employer contribution and a mandatory employee contribution. Employees can also make tax-deferred contributions to a supp...

We survey a theory of the economic underpinnings of the fat-tailed distributions of a number of financial variables, such as returns and trading volumes. Our theory posits that they have a common origin in the strategic trading behavior of very large financial institutions in a relatively illiquid market. We show how the fat-tailed distribution of fund sizes can indeed generate extreme returns ...

Using payday-lender administrative data matched to borrower credit attributes from a national credit bureau, I find that borrowers who engage in protracted refinancing (“rollover”) activity have better financial outcomes (measured by changes in credit scores) than consumers whose borrowing is limited to shorter periods. These results are robust to an alternative definition of a “rollover” that ...

We consider a continuous time dynamic pension funding model in a defined benefit plan of an employment system. The benefits liabilities are random, given by a geometric Brownian process. Three different situations are studied regarding the investment decisions taken by the sponsoring employer: in the first, the fund is invested at a constant, risk-free rate of interest; in the second, the promo...

Enterprise Risk Management (ERM) is a process that manages all risks in an integrated, holistic fashion by controlling and coordinating offsetting risks across the enterprise. This research investigates whether the adoption of the ERM approach affects firms’ cost of equity capital. We restrict our analysis to the U.S. insurance industry to control for unobservable differences in business models...

We show that new managers who take over mutual fund portfolios sell off inherited momentum losers at higher rates than stocks in any other momentum decile, even after adjusting for concurrent trades in these stocks by continuing fund managers. This behavior is observed regardless of fund characteristics and is stronger when new managers are external hires. The tendency of continuing fund manage...