Of tournaments and temptations: An analysis of managerial incentives in the mutual fund industry

Journal of Finance

Volumn 51, Issue 1, 1996, Pages 85-110

  Brown, Keith C ^a   Harlow, W V ^b   Starks, Laura T ^a  

^a UNIVERSITY OF TEXAS AT AUSTIN   (United States)

^b NONE

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0011063897     PISSN: 00221082     EISSN: None     Source Type: Journal    
DOI: 10.1111/j.1540-6261.1996.tb05203.x     Document Type: Article

References (29)

1. Baumol, W., S. Goldfeld, L. Gordon, and M. Koehn, 1990, The Economics of Mutual Fund Markets: Competition Versus Regulation (Kluwer Academic Publishers, Boston).
2. Bronars, S., 1987, Risk taking behavior in tournaments, Working paper, University of California at Santa Barbara.
3. Brown, S., W. Goetzmann, R. Ibbotson, and S. Ross, 1992, Survivorship bias in performance studies, Review of Financial Studies 5, 553-580.
4. Brown, S., and W. Goetzmann, 1993, Attrition and mutual fund performance, Working paper, Columbia University.
5. Brown, S., and W. Goetzmann, 1995, Mutual fund styles, Working paper, Yale University.
6. Bull, C., A. Schotter, and K. Weigelt, 1987, Tournaments and piece rates: An experimental study, Journal of Political Economy 95, 1-33.
7. Capon, N., G. Fitzsimons, and R. Prince, 1992, An individual level analysis of the mutual fund investment decision, Working paper, Columbia University.
8. Cohen, S., and L. Starks, 1988, Estimation risk and incentive contracts for portfolio managers, Management Science 34, 1067-1080.
9. Ehrenberg, R., and M. Bognanno, 1990, Do tournaments have incentive effects? Journal of Political Economy 98, 1307-1324.
10. Goetzmann, W., B. Greenwald, and G. Huberman, 1992, Market response to mutual fund performance, Working paper, Columbia University.
11. Goetzmann, W., and N. Peles, 1994, Cognitive dissonance and mutual fund investors, Working paper, Columbia University.
12. Golec, J., 1992, Empirical tests of a principal-agent model of the investor-investment advisor relationship, Journal of Financial and Quantitative Analysis 27, 81-96.
13. Green, J., and N. Stokey, 1983, A comparison of tournaments and contracts, Journal of Political Economy 91, 349-364.
14. Grinblatt, M., and S. Titman, 1987, How clients can win the gaming game, Journal of Portfolio Management 13, 14-20.
15. Grinblatt, M., and S. Titman, 1989a, Adverse risk incentives and the design of performance-based contracts, Management Science 35, 807-822.
16. Grinblatt, M., and S. Titman, 1989b, Portfolio performance evaluation: Old issues and new insights, Review of Financial Studies 2, 393-421.
17. Grinold, R., and A. Rudd, 1987, Incentive fees: Who wins? Who loses? Financial Analysts Journal 43, 27-38.
18. Hamada, R., 1972, The effect of the firm's capital structure on the systematic risk of common stocks, Journal of Finance 27, 435-452.
19. Kritzman, M., 1987, Incentive fees: Some problems and some solutions, Financial Analysts Journal 43, 21-26.
20. Lazear, E., and S. Rosen, 1981, Rank order tournaments as optimum labor contracts, Journal of Political Economy 89, 841-864.
21. Lakonishok, J., A. Shleifer, R. Thaler, and R. Vishny, 1991, Window dressing by pension fund managers, American Economic Review 81, 227-232.
22. McDonald, J., 1974, Objectives and performance of mutual funds, 1960-1969, Journal of Financial and Quantitative Analysis 9, 311-333.
23. McLaughlin, K., 1988, Aspects of tournament models: A survey, Research in Labor Economics 9, 225-256
24. Nalebuff, B., and J. Stiglitz, 1983, Prizes and incentives: Towards a general theory of compensation and competition, Bell Journal of Economics 14, 21-43.
25. Radcliffe, R., 1990, Investment: Concepts, analysis, strategy, 3e (Scott-Foresman, Homewood).
26. Ritter, J., 1989, Portfolio rebalancing and the turn-of-the-year effect, Journal of Finance 44, 149-167.
27. Rosen, S., 1986, Prizes and incentives in elimination tournaments, American Economic Review 76, 701-715.
28. Sirri, E., and P. Tufano, 1992, The demand for mutual fund services by individual investors, Working paper, Harvard University.
29. Starks, L., 1987, Performance incentive fees: An agency theoretic approach, Journal of Financial and Quantitative Analysis 22, 17-32.