In the theory of financial intermediation, bank debt is often characterized as being more readily renegotiable than public debt. Banks are also conjectured to gain valuable non-public information through closer monitoring. Given these features, bank debt can theoretically be more flexible than...

Performance of investment products managed by firms in which PhDs play a key role is superior to the performance of products managed by otherwise similar firms. This relation is not a result of endogenous matching between firms and PhDs. Performance is related to training (the field of study)...

We identify strong and robust evidence of strategic performance allocation in the institutional money management industry, directed toward strong recent performers. The extent of strategic performance allocation varies with the product's client power. Strategic performance allocation is...

Empirical evidence shows that the pricing kernel, or stochastic discount factor (SDF), is not always downward sloping when estimated using Samp;P 500 data. On the other hand, we show that individual stock SDFs are in general downward sloping. We show that a simple jump diffusion returns model...