We hypothesize that trust plays an important role in affecting the activeness and effectiveness of the global mutual fund industry. Empirically, trust is positively associated with the activeness of domestic funds, whereas for internationals mutual funds conducting cross-border investments...

We show that product using experience can improve stock price efficiency. Based on U.S consumer expenditure data from 1998 to 2015, we construct a consumption-based proxy for product experience at firm level. We find that investors incorporate both industry and firm specific information into...