Judging Fund Managers by the Company They Keep RANDOLPH B. COHEN, JOSHUA D. COVAL, and ˘LUBO˘s P´ ASTOR

Finance and the Business Cycle: International, Inter-Industry Evidence MAT´IAS BRAUN and BORJA LARRAIN

Debt Dynamics CHRISTOPHER A. HENNESSY and TONI M. WHITED

Housing Collateral, Consumption Insurance, and Risk Premia: An Empirical Perspective HANNO N. LUSTIG and STIJN G. VAN NIEUWERBURGH

What Explains the Stock Market’s Reaction to Federal Reserve Policy? BEN S. BERNANKE and KENNETH N. KUTTNER

Do Bank Relationships Affect the Firm’s Underwriter Choice in the Corporate-Bond Underwriting Market? AYAKO YASUDA

Demand–Deposit Contracts and the Probability of Bank Runs ITAY GOLDSTEIN and ADY PAUZNER

The Theory of Bank Risk Taking and Competition Revisited JOHN H. BOYD and GIANNI DE NICOL´O

The Choice of Payment Method in European Mergers and Acquisitions MARA FACCIO and RONALD W. MASULIS

Institutional Holdings and Payout Policy YANIV GRINSTEIN and RONI MICHAELY

Are Firms Underleveraged? An Examination of the Effect of Leverage on Default Probabilities CARLOS A. MOLINA

To Steal or Not to Steal: Firm Attributes, Legal Environment, and Valuation ART DURNEV and E. HAN KIM

What Determines the Domestic Bias and Foreign Bias? Evidence from Mutual Fund Equity Allocations Worldwide KALOK CHAN, VICENTIU COVRIG, and LILIAN NG