Biographical Sketch of Authors Ian Appel is an assistant professor of finance at the Carroll School of Management at Boston College. His research interests are in the areas of corporate finance, law and finance, and institutional investors. His recent research examines the effects of shareholder litigation and passive institutional investors. Ian received his Ph.D.

in finance from The Wharton School at the University of Pennsylvania. Todd Gormley is an Assistant Professor of Finance at The Wharton School at the University of Pennsylvania, where he teaches advanced corporate finance in the MBA program and empirical methodologies in the PhD program. Professor Gormley’s research focuses on how financial sector competition affects the local economy, how external governance affects managerial choices, and how individuals and managers respond to risk. His recent research examines whether passive institutional investors are passive owners and whether managers have an underlying preference to “play it safe” when external governance is weakened.

Professor Gormley received his Ph.D. in Economics from the Massachusetts Institution of Technology. Donald Keim is the John B. Neff Professor of Finance and Director of the Rodney L. White Center for Financial Research at the Wharton School, University of Pennsylvania. His research has dealt with: the relation between stock returns and predetermined variables (dividend yields, market cap, earnings/price ratios, and calendar turning points); tests of asset pricing models; the behavior of institutional investors with respect to trading, stock holdings, and corporate governance; the investment choices of participants in defined contribution pension plans; and the risks and returns of stock market-based real estate investments.

He received an MBA and PhD from the University of Chicago. .