Fund managers are paid a fixed management fee in proportion to their assets under management. This means to maximize … revenue, managers hoard assets. Whilst this results in increased revenue for the manager often, due to diseconomies of scale … this perverse incentive. The ‘incentive fee hypothesis' states that once managers become sufficiently incentivized to …

(performance fees) and implicit incentives (fund flows) of asset managers. Funds with performance fees face substantially steeper …

Mutual fund managers' compensation packages often contain relative performance-dependent components such as year …

Using detailed mutual fund holdings in the US market, we estimate active mutual fund managers’ loss aversion as a …. We further find managers' loss aversion is higher when past fund flows were high and lower when past fund flows were … illiquid positions, or more growth-oriented positions. We offer novel evidence to support the tournament effect, indicating …

In this paper, I develop a model of oligopoly with shareholder voting. Instead of assuming that firms maximize profits … monopolist. In a model of general equilibrium oligopoly with shareholder voting, higher levels of wealth inequality and …