Description: Benjamin Golez / University of Notre Dame / Finance
finance (9496) professor (885) benjamin (288) golez (1)
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Publications
ABSTRACT: Do asset managers engage in friendly investing to obtain privileged investment information? We test this hypothesis in the context of mutual fund connections to financial groups. Using brokers as the source of connections, we show that (a) funds overweight and are reluctant to sell the stock of connected financial groups, and (b) funds tend to cast their vote with the management of connected financial groups. The extent of friendly investing drives funds to trade similarly, and it is positively as