This paper examines whether stock market returns forecasts should take account of the political party in power by re-examining the prior literature to demonstrate that US stock market political regime differences are neither significant nor long-lasting. We demonstrate that the presidential...

Incentive design involves a tradeoff between motivating agents and distorting their efforts; for many tasks the distortions are such that flat rewards may be optimal. Yet organizations of all types -- from school boards to the FBI -- increasingly utilize rewards based on observable performance...

We study return comovement and relative pricing of two classes of shares with identical voting rights and cash-flow rights but for different investor clienteles: A-shares for domestic investors and B-shares for foreign investors. We first document a surprisingly low return comovement between A-...