The purpose of this article is to examine the impact of incentive fees on mutual fund performance. The paper proceeds as follows. In the first section we examine the characteristics and the use of incentive fees in the mutual fund industry. In the second section we explore the theory of the...

In 1970 Elton and Gruber (hereafter Eamp;G) started an industry by studying the impact of taxes on investor decisions using the behavior of share prices around the ex-dividend date. Eamp;G showed that if taxes enter investors decisions, then the fall in price on the ex-dividend day should...

This paper examines the effect of incentive fees on the behavior of mutual fund managers. Funds with incentive fees exhibit positive stock selection ability, but a beta less than one results in funds not earning positive fees. From an investor's perspective, positive alphas plus lower expense...

The CRSP database is a fairly new publicly available database on mutual funds. It is comprehensive and is corrected for survivorship bias. It and the Morningstar database are likely to be the standard databases used by researchers in the future. Despite the care that has been exercised in...

Mutual fund attrition can create problems for a researcher, because funds that disappear tend to do so due to poor performance. In this paper we estimate the size of the bias by tracking all funds that existed at the end of 1976. When a fund merges we calculate the return, taking into account...

In this paper, we develop relative-pricing (APT) models that are successful in explaining expected returns in the bond market. We utilize indexes as well as unanticipated changes in economic variables as factors driving security returns. An innovation in this paper is the measurement of the...

Mutual fund attrition can create problems for a researcher, because funds that disappear tend to do so due to poor performance. In this paper we estimate the size of the bias by tracking all funds that existed at the end of 1976. When a fund merges we calculate the return, taking into account...

In this paper, we develop relative pricing (APT) models that are successful in explaining expected returns in the bond market. We utilize indexes as well as unanticipated changes in economic variables as factors driving security returns. An innovation in this paper is the measurement of the...

This paper examines mutual fund predictability for common stock funds, using a sample free of survivorship bias, andmeasures performance using risk-adjusted returns. We reconfirm the hot hands result that high return can predict high return in the short run. Like Hendricks, Patel and Zeckhauser,...

In this paper we explore a new explanation of why closed-end bond funds exist when similar open-end funds are available. In general, closed-end funds operate in the less-liquid parts of the market. When we compare closed-end bond funds with a matched set of open-end funds with the same...