Stabsseminar ved Eirik Gaard Kristiansen

Dr. Eirik Gaard Kristiansen, NHH/Norges Bank, holder stabsseminar ved Institutt for foretaksøkonomi fredag 3. november.

01.11.2000 - Afsoun Sabzian

Tema er Explixit and Implicit Incentives in Fund Management

Tid og sted:
Fredag 3. november, kl. 1215-1330 i Aud. D

Abstract
Fund managers compete to attract new investors. Competition and fund management contracts provide (respectively) implicit and explicit incentives for fund management. I study the combined effect of these two types of incentives on i) investors' search for talented fund managers and on ii) talented fund man-agers' use of private investment signals. I show that a medium level of competi-tion yields less efficient use of private investment signals and lower average rate of return than in the case of either a high or a low level of competition in the fund management industry.
Furthermore, I show that although explicit incentives improve managers use of private information, they may harm new investors' search for talented fund managers. Explicit incentives may improve current performance, but deteriorate prospective performance of the fund industry.

Paper kan hentes fra instituttets hjemmeside på internett:
www.nhh.no/for/seminars/fall2000/031100.pdf

Hans K. Hvide