- When the manager and the board member went to the same school, the manager took a significantly bigger stake in the company
- These "connected" investments gave significantly higher returns (a portfolio of connected investments outperformed non-connected ones by over 8% per year)
- The abnormal returns on connected investments were concentrated around corporate events such as earnings announcements.
It's a pretty interesting piece - it appears that they superior returns weren't merely a reflection of the managers knowing more about the ability of the board member. The most telling finding was that the returns were concentrated around specific news events. Hence, they were more likely to be driven by "inside" information.
All in all a paper worth reading (or at least, discussing in class).