Language:

Fund Managers, Career Concerns, and Asset Price Volatility

The American economic review, 2012-08, Vol.102 (5), p.1986-2017 [Peer Reviewed Journal]

Copyright© 2012 American Economic Association ;Copyright American Economic Association Aug 2012 ;ISSN: 0002-8282 ;EISSN: 1944-7981 ;DOI: 10.1257/aer.102.5.1986 ;CODEN: AENRAA

Full text available

Citations Cited by

Actions
1. Add to My Research
2. Remove from My Research
3. E-mail
4. Print
5. Permalink
6. Citation
7. EasyBib
8. EndNote
9. RefWorks
10. Delicious
11. Export RIS
12. Export BibTeX

Title:
Fund Managers, Career Concerns, and Asset Price Volatility
Author: Guerrieri, Veronica ; Kondor, Péter
Subjects: Asset management ; Asset pricing ; Bond management ; Careers ; Commercial credit ; Consumption ; Corporate bonds ; Credit risk ; Decision ; Default ; default risk ; Demand side management ; Economic models ; Economic performance ; Economic theory ; Economics ; Emerging markets ; Employment termination ; Equilibrium prices ; Expected utility ; Funds ; Hedge funds ; Institutional investments ; Investment ; Investment advisors ; Investment strategies ; Investors ; Portfolio management ; Portfolios ; Price volatility ; Reputations ; Reviews ; Studies ; Uncertainty ; Volatility
Is Part Of: The American economic review, 2012-08, Vol.102 (5), p.1986-2017
Description: We propose a model of delegated portfolio management with career concerns. Investors hire fund managers to invest their capital either in risky bonds or in riskless assets. Some managers have superior information on default risk. Based on past performance, investors update beliefs on managers and make firing decisions. This leads to career concerns that affect managers' investment decisions, generating a countercyclical "reputational premium." When default risk is high, return on bonds is high to compensate uninformed managers for the high risk of being fired. As default risk changes over time, the reputational premium amplifies price volatility.
Publisher: Nashville: American Economic Association
Language: English
Identifier: ISSN: 0002-8282
EISSN: 1944-7981
DOI: 10.1257/aer.102.5.1986
CODEN: AENRAA
Source: ProQuest Central

Back to results list


INSPIRE LIBRARY - TON DUC THANG UNIVERSITY	(84-028) 37 755 057	Feedback
19 Nguyen Huu Tho St. Dist.7, HCM	thuvien@tdtu.edu.vn	Feedback

Fund Managers, Career Concerns, and Asset Price Volatility

Copyright© 2012 American Economic Association ;Copyright American Economic Association Aug 2012 ;ISSN: 0002-8282 ;EISSN: 1944-7981 ;DOI: 10.1257/aer.102.5.1986 ;CODEN: AENRAA

Searching Remote Databases, Please Wait