This paper investigates the effect of organizational capital, typified by various management practices within a firm, on the cost of external debt financing. Using a sample of medium-sized manufacturing firms in the US, we find that better management practices enhance a firm’s external...

We examine how the predictability of real estate returns affects the risk of, and optimal allocations to, real estate for investors of differing investment horizons. Returns to direct real estate are mean reverting, and risk decreases with horizon. This is driven by a tendency for property...

As tax-deferred saving is become increasingly popular, policy makers are keen on encouraging everyone in participating in tax-deferred saving plans. To pursue this goal, policy maker often increase contribution limits for tax-deferred savings. But whether this action is effective or not is not...

We present a life cycle model with diversification and tax-deferred investment opportunities. We find that investors should locate most of their taxable equities in the taxable brokerage account and taxable bonds in the tax-deferred retirement account irrespective of bequest motives when...

This study analyzes corporate expenditures for property, plant and equipment (PP&E) and research and development (R&D) for over 2,500 firms from 1987 to 1994. We document a positive relation between expenditures for PP&E and R&D and institutional share ownership. This relation is robust to a...