Gil–Bazo and Ruiz–Verdú (2009) show that fund families strategically exploit the low performance sensitivity of investors, i.e., investors’ low elasticity of demand with respect to performance, to increase fund fees. Given that environmentally, socially and governance (ESG) focused...

Research Questions/Issues: Executive remuneration as a tool of resolving agency problems or as a sign of them has been discussed in the literature for decades. The discussion, however, has been focused on non-financial firms. Bankers’ remuneration has been overlooked until recently. Due to...

In 2010, the Committee of European Securities Regulation (CESR) published the guidance on how to calculate the synthetic risk and reward indicator (SRRI) for Undertakings for Collective Investment in Transferable Securities (UCITS) to improve disclosure and presentation of risk information in...

The creation of Bao products, i.e., Apps that facilitate instant transactions and access to money for money market mutual fund (MMF) investors, and the creation of full-payment Bao products, i.e., Apps that enable bill payments directly from MMF accounts, are a rare example of architectural...

There is evidence that machine learning (ML) can improve the screening of risky borrowers, but the empirical literature gives diverse answers as to the impact of ML on credit markets. We provide a model in which traditional banks compete with fintech (innovative) banks that screen borrowers...

Independent directors are appointed to represent the interests of mutual fund shareholders. Yet, being in the employment of fund–families, the fulfilment of fiduciary duties of independent directors may be compromised. Using a large, hand-collected dataset of over 10,000 U.S. mutual funds, we...

It is recognized in the literature that there is a negative relationship between fund performance and fund exit. This paper analyses the performance of 6,600 U.S. mutual funds that exited the market in the 2000 – 2014 period and nearly twice as many U.S. mutual funds that remained operational,...

The desire to structure the remuneration of top banking executives and other material risk takers (MRTs), particularly the elements that are risk sensitive and aligned with long–term incentives of their institutions, is at the centre of the regulatory debate. This discussion is part of the...

The role of employers in setting up and overseeing pension schemes offered to their employees and the quality of investment schemes offered to individual investors have attracted considerable attention in the finance literature. This paper adds to the debate by showing that institutional...