We propose the outperformance probability as a new performance measure, which can be used in order to compare a strategy with a specified benchmark, and develop the basic statistical properties of its maximum-likelihood estimator in a Brownian-motion framework. The given results are used to...

Due to differences in financial sophistication and agency relationships, we posit that investors use different criteria to select portfolio managers in the retail mutual fund and fiduciary pension fund industry segments. We provide evidence on investors’ manager selection criteria by...

The globalization of financial markets in recent years, at the outset, it is important to highlight three longer-term trends in global markets. These are the dramatic increase in cross-border capital flows, the globalization of financial institutions, and the globalization of financial markets....