Sinan Gokkaya, Xi Liu, V. Pool, Feixue Xie, Jinfan Zhang
{"title":"Is There Investment Value in Soft Dollar Arrangements? Evidence from Mutual Funds","authors":"Sinan Gokkaya, Xi Liu, V. Pool, Feixue Xie, Jinfan Zhang","doi":"10.2139/ssrn.3225133","DOIUrl":"https://doi.org/10.2139/ssrn.3225133","url":null,"abstract":"Combining novel data on analyst employment history and mutual fund commission payments, we show that client funds generate higher returns on stocks for which they have access to research by industry expert analysts. The outperformance is greater when funds are more important clients, and it cannot be attributed to tipping. Client funds place modestly higher weights on stocks covered by industry expert analysts and allocate more commissions to brokers providing such coverage. For identification, we exploit exogenous analyst coverage disruptions. Our findings contribute to the debate concerning the unbundling of commissions under MiFID II and its implications for the U.S.","PeriodicalId":367054,"journal":{"name":"29th Annual Conference on Financial Economics & Accounting 2018 (Archive)","volume":"39 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-04-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130027119","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Political Uncertainty and Household Stock Market Participation","authors":"V. Agarwal, H. Aslan, Lixin Huang, Honglin Ren","doi":"10.2139/ssrn.3068792","DOIUrl":"https://doi.org/10.2139/ssrn.3068792","url":null,"abstract":"Using micro-level panel data and a difference-in-differences identification strategy, we study the effect of political uncertainty on household stock market participation. We find that households significantly reduce their participation and reallocate funds to safer assets during periods of increased political uncertainty. The decline in participation is related to households’ response to elevated asset risk and their incentive to hedge increased labor income risk. In situations where uncertainty remains high after elections, pre-election reduction in participation is only partially reversed, reflecting a prolonged distortion in household stock investments, which can have implications for households, firms, and the economy in general.","PeriodicalId":367054,"journal":{"name":"29th Annual Conference on Financial Economics & Accounting 2018 (Archive)","volume":"30 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114359721","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}