Annual Conference

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Investment Finance

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May 2022

Birth order and fund manager’s trading behavior: Role of sibling rivalry

Vikas AGARWAL, Alexander COCHARDT, Stephan HELLER, Vitaly ORLOV
This paper investigates the role of birth order on managerial behavior using rich data on familial background of US mutual fund managers. We find that managers who are born later in the sibling hierarchy take on more investment risks relative to first-born managers. Later-born managers deviate more ...
Keywords: birth order, mutual fund manager, fund risk, parental resources, evolutionary psychology, sibling rivalry
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Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2022

Biased Expectations and Credit Risk in the Municipal Bond Market

Tarun CHORDIA, Jinoug JEUNG, Abinash PATI
We show that the pricing of credit risk in the municipal bond market depends on the salience of its underlying cash-flow shocks. We find that public mass shootings raise borrowing costs of issuers in affected counties by an average of 6 (5.2) basis points in the secondary (primary) market. This incr...
Keywords: Biased Beliefs, Public Mass Shootings, Municipal Debt, Salience
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Senior Fellows/Fellows

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Senior Fellows/Fellows, Pandemic

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May 2020

Between Lives and Economy: Optimal COVID-19 Containment Policy in Open Economies

Wen-Tai HSU, Hsuan-Chih (Luke) LIN, Han YANG
This paper studies optimal containment policy for combating a pandemic in an open- economy context. It does so via quantitative analyses using a model that incorporates a standard epidemiological compartmental model in a multi-country, multi-sector Ricardian model of international trade with full-fl...
Keywords: COVID-19, Pandemic, welfare analysis, containment policy, optimal policy, open economy, trade, input-output linkages
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Annual Conference

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Investment Finance

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May 2021

Best Short

Pasquale Della CORTE, Robert KOSOWSKI, Nikolaos P. RAPANOS
We infer investors' expectations about future stock returns through a measure of short conviction that exploits net short positions disclosed at the investor-stock level for European stock markets. A strategy that sells high-conviction stocks and buys low-conviction stocks, named Best Short, generat...
Keywords: Disclosure, Short-sale performance, anomalies, Hedge Funds.
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Annual Conference

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Corporate Finance, Senior Fellows/Fellows

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May 2015

Behind the Scenes: The Corporate Governance Preferences of Institutional Investors

Laura STARKS, Joseph A. MCCAHERY, Zacharias SAUTNER
We survey institutional investors to better understand their role in the corporate governance of firms. Consistent with a number of theories we document widespread behind-the-scenes intervention as well as governance-motivated exit. Both governance mechanisms are viewed as complementary devices, in ...
Keywords: institutional investors, Corporate governance, shareholder activism
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