Household Discretionary Wealth and the Cost to Mutual Funds

Robert Carnes, Jeremiah Green, Nicholas Krupa, Leventhal School of Accounting, University of Southern California, Los Angeles, James Benjamin Department of Accounting, Mays Business School, Texas A , M University, College Station, College of Business, Clemson University

Journal of Accounting, Auditing & Finance

Published online on April 30, 2025

Abstract

Journal of Accounting, Auditing & Finance, Volume 41, Issue 2, Page 615-635, April 2026.
We show that shocks to household discretionary wealth, identified as months with five Fridays when biweekly and weekly paid workers receive an extra paycheck, are accompanied by higher retail mutual fund inflows and lower returns. These outcomes imply ...