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Agency and Transparency in Financial Markets

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  • Sadettin Haluk Citci
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    Abstract

    We analyze incentive effects of transparency on delegated portfolio management. When portfolio return is observable, disclosure of portfolio composition decreases expected return and lowers the investor's ability to identify the manager's actual type. More information about the portfolio return before renewal of management agreement also decreases expected return, while, conditionally, it may provide more information about manager's actual ability.

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    File URL: http://www.bifec.com/docs/default-source/default-document-library/book-of-abstracts-and-proceedings.pdf
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    Bibliographic Info

    Article provided by Research and Business Development Department, Borsa Istanbul in its journal BIFEC Book of Abstracts & Proceedings.

    Volume (Year): 1 (2014)
    Issue (Month): 2 (March)
    Pages: 110-120

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    Handle: RePEc:bor:bifeca:v:1:y:2014:i:2:p:110-120

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    Related research

    Keywords: Transparency; career concern; delegated portfolio management;

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