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Portfolio Manager Compensation in the U.S. Mutual Fund Industry

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dc.contributor.authorMa, LinLin
dc.contributor.authorTang, Yuehua
dc.contributor.authorGómez, Juan Pedro
dc.contributor.funderMinistry of Education of Singapore
dc.contributor.funderMinisterio de Economía y Competitividad
dc.contributor.funderBanco de España
dc.contributor.rorhttps://ror.org/02jjdwm75
dc.date.accessioned2024-10-22T15:04:20Z
dc.date.available2024-10-22T15:04:20Z
dc.date.issued2018-12-12
dc.description.abstractWe study compensation contracts of individual portfolio managers using hand-collected data of over 4,500 U.S. mutual funds. Variations in the compensation structures are broadly consistent with an optimal contracting equilibrium. The likelihood of explicit performance-based incentives is positively correlated with the intensity of agency conflicts, as proxied by the advisor's clientele dispersion, its affiliations in the financial industry, and its ownership structure. Investor sophistication and the threat of dismissal in outsourced funds serve as substitutes for explicit performance-based incentives. Finally, we find little evidence of differences in future performance associated with any particular compensation arrangement.
dc.description.peerreviewedyes
dc.description.statusPublished
dc.formatapplication/pdf
dc.identifier.citationMa, L., Tang, Y., & Gomez, J. P. (2019). Portfolio manager compensation in the US mutual fund industry. The Journal of Finance, 74(2), 587-638. https://doi.org/10.1111/jofi.12749
dc.identifier.doihttps://doi.org/10.1111/jofi.12749
dc.identifier.issn1540-6261
dc.identifier.urihttps://hdl.handle.net/20.500.14417/3291
dc.issue.number2
dc.journal.titleThe Journal of Finance
dc.language.isoen
dc.page.final638
dc.page.initial587
dc.page.total51
dc.publisherWiley
dc.relation.departmentFinance
dc.relation.entityIE University
dc.relation.projectIDC207MSS13B002
dc.relation.projectIDECO2014-53022-R
dc.relation.schoolIE Business School
dc.rightsAttribution 4,0 International
dc.rights.accessRightsinfo:eu-repo/semantics/openAccess
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/
dc.subject.keywordFunds
dc.titlePortfolio Manager Compensation in the U.S. Mutual Fund Industry
dc.typeinfo:eu-repo/semantics/article
dc.version.typeinfo:eu-repo/semantics/acceptedVersion
dc.volume.number74
dspace.entity.typePublication
relation.isAuthorOfPublication4c2d4d21-bbf8-4935-96bc-6475146ceea7
relation.isAuthorOfPublication.latestForDiscovery4c2d4d21-bbf8-4935-96bc-6475146ceea7
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