NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Cost of Friendship

Paul Gompers, Vladimir Mukharlyamov, Yuhai Xuan

NBER Working Paper No. 18141
Issued in June 2012

---- Acknowledgements -----

We thank Ben Esty, Lauren Cohen, Josh Coval, Fritz Foley, Zhenyu Lai, Chris Malloy, Rick Ruback, Andrei Shleifer, David Smalling, Jeremy Stein, Emily Weisburst, Eric Zwick and seminar participants at the Harvard Business School for helpful discussions and comments. Support for this research was provided by the Division of Research at the Harvard Business School. Daniel Kim provided excellent research assistance. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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