A positive relation between confidence and effort/investment provision has been theoretically justified and practically assumed in the literature, but has not been thoroughly investigated. We test and confirm this positive relation between direct measures of confidence and choice of effort or...

A positive relation between confidence and effort/investment provision has been theoretically justified and practically assumed in the literature, but has not been thoroughly investigated. We test and confirm this positive relation between direct measures of confidence and choice of effort or...

Predicting worker's effort is important in many different areas, but is often difficult. Using a laboratory experiment, we test the hypothesis that confidence, i.e. person-specific beliefs about her abilities, can be used as a generic proxy to predict effort provision. We measure confidence in...

I study the impact of contractual incentives on the behaviour of mutual fund managers in annual tournaments. I show that linear contracts as opposed to concave ones induce managers to make larger risk adjustments in response to their relative performance ranks. I argue that contracts with linear...

We develop a model of implicitly biased decision-making in competitive promotions. In our model, a decision-maker needs to choose who to promote to a top position. The decision-maker always prefers a skilled agent over an unskilled one but is biased in favour of agents from a certain group when...

We examine the differences in the stock holdings of wealthy households in different counties of the U.S. with different political preferences over the past 25 years. Al- though political differences between counties have been increasing since at least 1996, it is not until 2013 when they started...

This paper investigates whether hedge fund of funds managers invest in single-strategy hedge funds in a random fashion. By examining the underlying single-strategy hedge funds from which a fund of funds can select, we find that single-strategy hedge funds added to the portfolio of funds of funds...

A significant number of institutional investors publicly state the belief that corporate stakeholder relations are associated with firm value in a manner that the financial market fails to understand. We investigate whether stakeholder information predicted risk-adjusted returns due to errors in...