Investment Decisions

Working Paper

Digital Transformation in the Hedge Fund and Private Equity Industry

The digital transformation is disrupting the financial sector. Venture capital, private equity and hedge funds are also affected. We see more and more firms implement emerging technologies in their investment process. There are several common...Read more

Omololu Bajulaiye
Ivona Skultetyova
Erik Vermeulen
16 March 2020

Investment Returns and Distribution Policies of Non-Profit Endowment Funds

We present the first estimates of investment returns and distribution rates for U.S. non-profit endowment funds, based on a comprehensive sample of 29,892 organizations drawn from Internal Revenue Service filings for 2009-2017, a period that saw...Read more

Sandeep Dahiya
David Yermack
27 November 2018

The Private Use of Credit Ratings: Evidence from Mutual Fund Investment Mandates

Credit ratings have been shown to be imperfect and sometimes biased measures of risk. Has this affected their use in unregulated settings? Using textual analysis, we measure the use of credit ratings in investment mandates of fixed income mutual...Read more

Ramin Baghai
Bo Becker
Stefan Pitschner
10 July 2019

Defined Contribution Plans and the Challenge of Financial Illiteracy

Retirement investing in the United States has changed dramatically. The classic defined-benefit (DB) plan has largely been replaced by the defined contribution (DC) plan. With the latter, individual employees’ decisions about how much to save for...Read more

Jill Fisch
Annamaria Lusardi
Andrea Hasler
07 November 2019

The Future or Fancy? An Empirical Study of Public Benefit Corporations

The public benefit corporation (“PBC”) is one of the most hyped developments in corporate law, due to the PBC’s unique social purpose. Unlike the traditional corporation, directors of PBCs are required under their fiduciary duties to consider the...Read more

Michael B. Dorff
James Hicks
Steven Davidoff Solomon
25 February 2020

What does earnings management signal? The role of managerial honesty in investment decisions

Accounting earnings management elicits varying reactions: To some observers, it signals low managerial honesty. To others, it indicates that firm managers are sharing private information. Accordingly, different investors may respond differently...Read more

Alexander Wagner
Rajna Gibson Brandon
Matthias Sohn
Carmen Tanner
20 July 2017

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