This paper studies institutional investors' incentives to be engaged shareholders. We measure incentives as the increase in an institution's cash flow (management fees) when a stockholding increases 1% in value, considering both the direct effect on assets under management and the indirect...

This paper studies the tax effects of financing decisions. We show that subtle, often unstated, tax assumptions play a key role in many capital structure theories, including in the models of Miller (1977), Auerbach (1979), and Hennessy and Whited (2004). Our central thesis is that, under quite...

We study the investment-cashflow sensitivities of U.S. firms from 1971–2009. Our tests extend the literature in several key ways and provide strong evidence that cashflow explains investment beyond its correlation with q. In simple OLS regressions, a dollar of current- and prior-year cashflow...

We study the ownership structure of U.S. corporations using a comprehensive database of share ownership by insiders, affiliated firms, and institutional investors. Ownership has become increasingly concentrated in recent years, especially in mid- and large-cap firms. In 2017, insiders and...