While Merton (1987) proposes that firm value increases with the number of shareholders, relatively few studies have explicitly sought to identify the factors that affect investor participation per se in equity markets. Using a unique dataset that measures the inflow and outflow of equity...

An implicit assumption of the tournament hypothesis of mutual fund behavior is that managers intentionally modify portfolio risk in response to interim out- or underperformance. We present empirical evidence that associations between interim performance and subsequent volatility remain present...