Compensation of private equity fund managers typically consists of a fixed management fee and a performance related … carried interest which entitles managers to option-like payoffs. We consider whether this structure tends to reward excessive … buyout funds, our results demonstrate that managers indeed have an incentive for excessive risk-taking in case only fee …

This paper investigates what mutual fund managers learn from senior colleagues by focusing on managers managing … ability of fund managers by extending the active investment skill model (Berk and Green, 2004). Empirical evidence shows that …

managerial replacement. We find that managers with superior performance that is due to sample variation are more likely to be … dismissed than are ‘unlucky' managers indicating that many fund companies are not captivated by the ‘lucky' managers' extreme … performance and willing to give ‘unlucky' managers another chance. Furthermore, underperforming managers are more likely to be …

The level of diseconomies of scale in asset management has important implications for tests of manager skill and the …

Active fund managers are skilled and, on average, have used their skill to generate about $3.2 million per year. Large … investing more capital in funds managed by better managers. These funds earn higher aggregate fees, and a strong positive …