Material private information transmits through social networks. Using manually collected information on networks of alumni reunion cohorts, we show that hedge fund managers connected to directors of firms engaged in merger deals increase call option holdings on target firms before deal...

This study explores the effect of asset specificity on a target firm's value in a merger. Using US merger data, I show that, when their industry experiences a negative cash flow shock, target firms that consist of more industry-specific real assets receive a lower merger premium than do those...

This paper investigates how personal connections facilitate informed option trading prior to corporate events. We identify person-to-person connections between hedge funds and companies before merger and acquisitions announcements and find that fund managers' pre-announcement option holdings...

Modern mutual fund families include more than active mutual funds (AMFs). AMFs in families with greater index mutual fund (IMF) presence generate higher category-adjusted gross returns. Performance is positively related to the levels of passive and active fees, suggesting moral hazard....

We examine how search frictions affect merger outcomes. Exploiting firm connections in common bank networks (CBNs) as a channel for reducing search costs, we show that like-buys-like mergers are more probable between firms connected through a CBN. This effect is amplified if the connection has...

We investigate whether average director tenure affects a firm's stock return volatility. Exploiting director deaths as exogenous shocks, we show that firms losing long-tenured directors experience 16.75% higher post-event annualized return volatility compared to control firms. Firms with...

This paper studies the interactions between corporate boards and major customers. Using the Sarbanes-Oxley Act of 2002 (SOX) and consequent governance reforms as a quasi-natural experiment, we find that SOX-affected firms diversify their customer bases by removing directors with business links...

Prior literature shows that firms are less likely to pay dividends to preserve financial flexibility when facing greater competitive threats from rival firms in product markets. However, the real effects of dividend policy on product market outcomes are not widely understood. This paper...