Getting the Compensation Structure Right in the Mutual Fund Industry
Authors take a look at how money managers get compensated and whether these compensation schemes provide managers with the incentive to act in the investors’ best interests. Their research concludes that certain money managers, due to the generally accepted method of compensation in the mutual fund industry, are likely to increase their portfolio’s risk level in an effort to improve their chances of receiving … [ Read more ]
Content: Article | Authors: Keith C. Brown, Laura T. Starks | Source: strategy+business | Subjects: Finance, Industry Specific | Industry: Investment Banking