John Chalmers and Arash Dayani ♦ We document two mutual fund strategies: “Swinging for the Fences” (SF), where managers hold stocks with extreme style-adjusted returns on either tail of the return distribution, and “Batting for Average” (BA), where managers seek stocks…
Alexander Michaelides, Joachim Inkmann, and Yuxin Zhang ♦ Using a calibrated, collective life-cycle portfolio choice model for a dual-income couple, we show that an increase in the ability to share risk within the household due to a mean-preserving spread in…
Zhaoxia Xu, Viral V. Acharya, and Soku Byoun ♦ We show that with a time-varying cost of capital (COC), firms save from external capital when the firm-specific COC is low to hedge against future underinvestment risks associated with a higher…
Fariborz Moshirian, Peter Pham, and Jenny Jihyun Tak ♦ Using US mutual funds’ international voting records, we investigate whether proximity to firm operations promotes active monitoring by foreign investors. To identify monitoring effects, we exploit variations in proximity arising from…
Ganesh Viswanath-Natraj, Angelo Ranaldo, and Junxuan Wang ♦ We conduct the first comprehensive study of blockchain currencies—stablecoins pegged to fiat currencies and traded on decentralized exchanges. Using transaction-level data linked to wallet characteristics, we show that prices in these markets…
Quentin Dupont and Kayla Marie Freeman ♦ We study how trust in cultural institutions affects cooperation between firms, employing local religious scandals for identification. We focus on trade credit as a trust-intensive aspect of supply chain relationships. In a triple-difference…
