We review the recent literature on rational inattention, identify the main theoretical
mechanisms, and explain how it helps us understand a variety of phenomena across fields …

Just over 20 years have passed since the publication of Mark Carhart's landmark 1997 study
on mutual funds. Its conclusion—that the data did “not support the existence of skilled or …

We present a comprehensive analysis of the performance and flows of US actively managed
equity mutual funds during the 2020 COVID-19 crisis. We find that most active funds …

We show that mutual fund investors rely on simple signals and likely do not engage in
sophisticated learning about managers' alpha as widely believed. Simplistic performance …

Using the value that a mutual fund extracts from capital markets as the measure of skill, we
find that the average mutual fund has used this skill to generate about $3.2 million per year …

We analyze the effects of institutional cross-ownership of same-industry firms on product
market performance and behavior. Our results show that cross-held firms experience …

The question of whether and how mutual fund managers provide valuable services for their
clients motivates one of the largest literatures in finance. One candidate explanation is that …

The COVID-19 pandemic has caused catastrophic global upheaval with the potential to alter
geopolitical and socio-economic norms. This study offers potential insights for the post …

We document fragile demand for socially responsible investments (SRIs) by retail mutual
fund investors. Using COVID-19 as an economic shock, we show funds with higher …

Investor attention matters for corporate actions. Our new identification approach constructs
firm-level shareholder “distraction” measures, by exploiting exogenous shocks to unrelated …