Investment Decision

Overconfidence, Effort, and Investment

The theoretical finance literature predicts that overconfident managers overinvest in risky projects and exert more effort to learn about...

The Inside Information Regime of the MAR and the Rise of the ESG Era

The rise in ESG investing has been characterized as an “investor revolution” and a manifestation of “social change”. The current coronavirus...

Egalitarianism and International Investment

Control Matters: Law and Economics of Private Benefits of Control

Low-carbon Mutual Funds

Low-carbon mutual funds allow investors to purchase lower exposure to climate change risk at the cost of lower sectoral diversification. On balance,...

Is Investment-Cash Flow Sensitivity Caused by the Agency Costs or Asymmetric Information? Evidence from the UK

Ownership, Investment and Governance: The Costs and Benefits of Dual Class Shares

In this paper we show that dual-class shares can be an answer to agency conflicts rather than a result of agency conflicts. When a firm issues voting shares...

Sovereign Wealth Funds: Investment Choices and Implications around the World

The Global Sustainability Footprint of Sovereign Wealth Funds

With the emergence of sovereign wealth funds (SWFs) around the world managing equity of over $8 trillion, their impact on the corporate landscape and...

Agency Conflicts, Investment, and Asset Pricing

The separation of ownership and control allows controlling shareholders to pursue private benefits. We develop an analytically tractable dynamic...

Corporate Governance Regimes, Investments in Human Capital and Economic Growth

Getting Tired of Your Friends: The Dynamics of Venture Capital Relationships

Does doing more deals together always strengthen investor relationships? Based on the relationships of the top 50 US venture capital firms, this paper...