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作者：Savoy, Alexi
作者单位：New York University
摘要：Skilled investors make money off uninformed investors. By acting as intermediaries, they provide a hedge to the uninformed investors themselves. I present a model in which households have imperfect information about expected returns. Non-traded income shocks lead them to rebalance, sometimes at the wrong time. Active funds hedge this risk by trading on superior information. In equilibrium, they pay off when non-traded income disappoints, earning a premium that makes them appear to underperform...
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作者：Kedia, Simi; Rajgopal, Shivaram; Zhou, Xing
作者单位：Rutgers University System; Rutgers University New Brunswick; Emory University
摘要：We investigate a prominent allegation in congressional hearings that Moody's loosened its rating standards to chase revenue after it went public in 2000. Consistent with this allegation, Moody's ratings for both corporate bonds and structured finance products are significantly more favorable to issuers, relative to S&P's, after Moody's IPO. Moreover, Moody's ratings are more favorable for clients subject to greater conflict of interest. There is little evidence that Moody's higher ratings, pos...
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作者：Cohen-Cole, Ethan; Kirilenko, Andrei; Patacchini, Eleonora
作者单位：Massachusetts Institute of Technology (MIT); Syracuse University; Sapienza University Rome
摘要：We study the profitability of traders in two fully electronic and highly liquid markets: the Dow and Standard & Poor's 500 e-mini futures markets. Using unique information that identify counterparties to a transaction, we show and seek to explain the fact that the network pattern of trades captures the relations between behavior in the market and returns. Our approach includes a simple representation of how much a shock is amplified by the network and how widely it is transmitted. This represe...
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作者：Bonaparte, Yosef; Korniotis, George M.; Kumar, Alok
作者单位：University of Colorado System; University of Colorado Denver; University of Miami
摘要：We examine whether the decision to participate in the stock market and other related portfolio decisions are influenced by income hedging motives. Economic theory predicts that the market participation propensity should increase as the correlation between income growth and stock market returns decreases. Surprisingly, empirical studies find limited support for the income hedging motive. Using a rich, unique Dutch data set and the National Longitudinal Survey of the Youth (NLSY) from the United...
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作者：Masulis, Ronald W.; Mobbs, Shawn
作者单位：University of New South Wales Sydney; University of Alabama System; University of Alabama Tuscaloosa
摘要：We study reputation incentives in the director labor market and find that directors with multiple directorships distribute their effort unequally based on the directorship's relative prestige. When directors experience an exogenous increase in a directorship's relative ranking, their board attendance rate increases and subsequent firm performance improves. Also, directors are less willing to relinquish their relatively more prestigious directorships, even when firm performance declines. Finall...
