This paper proposes a novel measure of political risk that is used to confirm some of the findings documented in the Foreign Direct Investments (FDI) literature. Particularly, we confirm the positive relationship between political stability and its components on net FDI inflows, and the...

The objective dimension of work involves the person acting on external objects through the process of economic production. But because persons tend toward self-realization, and because work is an integral part of this process, the person is also the subject of work. The subjective dimension of...

This study analyzes how equity mutual fund investor behavior has changed over time, and the associated impact on investor returns. First, we find that from 1991-2016 investor return-chasing behavior declined and more recently disappeared, while investor flows have become more sensitive to...

We present and estimate a Bayesian Hierarchical model of mutual fund returns. In our model, a fund's alpha reflects not only that fund's return history, but also information from other fund returns. Because parameters are estimated simultaneously for all funds, we can identify common residual...

This paper utilizes a Bayesian hierarchical model to study the distribution of skill (alphas) among mutual funds. The hierarchical model specifies a probability distribution over all parameters and funds, making it possible to formally analyze the variability of alphas across funds. In addition,...

This study examines the investment timing performance of equity mutual fund investors and its relationship to the distribution arrangement of the fund. We find that investors who transact through investment professionals using conventional distribution arrangements experience substantially...

When data exhibit cross-sectional variation in scale and regression parameters, pooled regression parameters can exhibit severe biases. It is commonly assumed that normalizing per-share earnings data by a firm's stock price eliminates cross-sectional variation in scale. This study shows that...

We examine the timing ability of mutual fund investors using cash flow data at the individual fund level. Over 1991-2004 equity fund investor timing decisions reduce fund investor average returns by 1.56% annually. Underperformance due to poor timing is greater in load funds and funds with...

Stock insurers can reduce or eliminate agency conflicts between policyholders and stockholders by issuing participating insurance. Despite this benefit, most stock companies don't offer participating contracts. This study explains why. We study an equilibrium with both stock and mutual insurers...

This paper develops a formal model of analyst earnings forecasts that discriminates between rational behavior and that induced by cognitive biases. In the model, analysts are Bayesians who issue sequential forecasts that combine new information with the information contained in past forecasts....