We propose a model where investors hire fund managers to invest either in risky bonds or in riskless assets. Some … managers have superior information on the default probability. Looking at the past performance, investors update beliefs on … their managers and make firing decisions. This leads to career concerns which affect investment decisions, generating a …

mutual fund managers and corporate board members via shared education networks. We find that portfolio managers place larger … managers gaining an informational advantage through the education networks. Our results suggest that social networks may be an …

Incentive fees for money managers are frequently accompanied by high-water mark provisions that condition the payment … performance fees are valuable to money managers, and conversely, represent a claim on a significant proportion of investor wealth …

This paper examines the labor market for mutual fund managers and managers' responses to the implicit incentives … the hypothesis that fund companies are learning about managers' abilities, managerial turnover is more performance …-sensitive for younger fund managers. Interpreting the separation-performance relationship as an incentive scheme, several of our …

We study the relation between mutual fund managers' family backgrounds and their professional performance. Using hand …-collected data from individual Census records on the wealth and income of managers' parents, we find that managers from poor families … deliver higher alphas than managers from rich families. This result is robust to alternative measures of fund performance …

We study the joint determination of fund managers' contracts and equilibrium asset prices. Because of agency frictions …, investors make managers' fees more sensitive to performance and benchmark performance against a market index. This makes … managers unwilling to deviate from the index and exacerbates price distortions. Because trading against overvaluation exposes …