Banks are widely believed to have an information advantage, but regulation forces them to sell deteriorating loans, potentially hampering renegotiation and amplifying the initial negative shock to the borrower. We study to what extent the secondary market affects loan outcomes after an initial...

Sweden offers a unique natural experiment to analyze the effects of institutionalized saving on the ownership structure, corporate governance, and firm performance. The Swedish pension reform increased the stock market participation of pension funds, causing a significant reshuffling in the...