Governing Misvalued Firms
---- Acknowledgements ----
We thank Lauren Cohen, Robin Greenwood, Lei Mao, Vinay Nair, Randal Morck, Ramana Nanda, Gordon Phillips, David Robinson, David Scharfstein, Antoinette Schoar, Vish Viswanathan, and Wei Xiong for fruitful discussion and comments, as well as seminar participants at Harvard University, INSEAD, Imperial College, Norwegian School of Economics, Korea Advanced Institute of Science and Technology (KAIST), University of Exeter, and University of Warwick, Hong Kong University of Science and Technology (HKUST), National University of Singapore Business School, The Conference on Empirical Legal Studies (CELS), Research Institute of Industrial Economics (Stockholm, Sweden), University of Bergen, Forth Miami Behavioral Finance Conference. Special thanks to Mozaffar Khan, Leonid Kogan, and George Serafeim for kindly providing us with data on stocks subject to mutual fund buying pressure. All errors are our own. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.