Are Mutual Fund Managers Paid For Investment Skill? /

Compensation of mutual fund managers is paramount to understanding agency frictions in asset delegation. We collect a unique registry-based dataset on the compensation of Swedish mutual fund managers. We find a concave relationship between pay and revenue, in contrast to how investors compensate the...

Ausführliche Beschreibung

Gespeichert in:
1. Verfasser:
Ibert, Markus
Körperschaft:
National Bureau of Economic Research
Weitere Verfasser:
Kaniel, Ron, Van Nieuwerburgh, Stijn, Vestman, Roine
Format:
Elektronisch E-Book
Sprache:
Englisch
Veröffentlicht:
Cambridge, Mass. National Bureau of Economic Research 2017.
Zusammenfassung:
Compensation of mutual fund managers is paramount to understanding agency frictions in asset delegation. We collect a unique registry-based dataset on the compensation of Swedish mutual fund managers. We find a concave relationship between pay and revenue, in contrast to how investors compensate the fund company (firm). We also find a surprisingly weak sensitivity of pay to performance, even after accounting for the indirect effects of performance on revenue. Firm-level revenues and profits add substantial explanatory power for compensation to manager-level revenue and performance, highlighting the importance of the mutual fund firm.
Umfang:
1 online resource: illustrations (black and white);
Anmerkungen:
April 2017.
Schlagworte: