R esearch summary: Agency theory suggests that external governance mechanisms (eg,
activist owners, the market for corporate control, securities analysts) can deter managers …

Cash flows between investors and funds are both cause and effect in a complex web of
economic decisions. Among the issues at stake are the prospects and fees of the funds, the …

We connect stocks through their common active mutual fund owners. We show that the
degree of shared ownership forecasts cross‐sectional variation in return correlation …

We examine the extent to which institutional investors herd in the US corporate bond market
and the price impact of their herding behavior. We find that the level of institutional herding …

We examine whether institutional investors follow each other into and out of the same
industries. Our empirical results reveal strong evidence of institutional industry herding. The …

We investigate the dual notions that “dumb money” exacerbates well-known stock return
anomalies and “smart money” attenuates these anomalies. We find that aggregate flows to …

Using a large proprietary database of institutional trades, this paper examines the interim
(intraquarter) trading skills of institutional investors. We find strong evidence that institutional …

Recent research finds that the stocks that mutual fund managers buy outperform the stocks
that they sell (eg, Chen, Jegadeesh, and Wermers (2000)). We study the nature of this stock …

This paper provides new evidence on the causes and consequences of herding by
institutional investors. Using a comprehensive database of every transaction made by …

Using a large sample of A-share listed companies on the Chinese stock market, we
investigate the impact of information interaction among institutional investors (IIAII) on stock …