This paper shows that portfolio constraints have important implications for management compensation and performance evaluation. Concretely, in the presence of portfolio constraints, allowing for benchmarking can be beneficial. Benchmark design arises as an alternative effort inducement mechanism...

Using daily data from May 2000 to January 2004, this study examines the risk, return, securities selection, and market timing performance of China's securities investment funds (SIFs), in comparison with the performance of the SIFs in the United States. Our results indicate that China investment...

Mutual funds (in the form of open-end unit trusts) were introduced in the Italian financial system in 1984. In this paper we assessed mutual fund performance in Italy in the decade April 1989-March 1999. We used absolute performance data, portfolio compositions and net inflows data to measure...

This study examines the extent to which fund characteristics contributes to explaining fund returns differentiated by managers´ stock picking and market timing abilities. The findings show that funds characterized by high exposures to broad market movements have good timing returns but show...

This paper shows that portfolio constraints have important implications for management compensation and performance evaluation. In particular, in the presence of portfolio constraints, allowing for benchmarking can be bene…cial. Benchmark design arises as an alternative effort inducement...