Career Concerns Of Mutual Fund Managers
Abstract
We examine the labor market for mutual fund managers. Using data from 1992-1994, we find that "termination" is more performance-sensitive for younger managers. We identify possible implicit incentives created by the terminationperformance relationship. The shape of the termination-performance relationship may give younger managers an incentive to avoid unsystematic risk. Direct effects of portfolio composition may also give younger managers an incentive to ''herd'' into popular sectors. Consistent with these incentives, we find that younger managers hold less unsystematic risk and have more conventional portfolios. Promotion incentives and market responses to managerial turnover are also studied. © 2000 the President and Fellows of Harvard College and the Massachusetts Institute of TechnologyDownload Info
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Bibliographic Info
Article provided by MIT Press in its journal The Quarterly Journal of Economics.
Volume (Year): 114 (1999)
Issue (Month): 2 (May)
Pages: 389-432
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Related research
Keywords:Other versions of this item:
- Judith Chevalier & Glenn Ellison, 1998. "Career Concerns of Mutual Fund Managers," NBER Working Papers 6394, National Bureau of Economic Research, Inc.
- G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
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