EconPapers    
Economics at your fingertips  
 

Pay-performance sensitivity and risk-taking behaviors: Evidence from closed-end funds

Tianna Yang and Wenxuan Hou

Emerging Markets Review, 2016, vol. 29, issue C, 274-288

Abstract: The pay-performance sensitivity (PPS) of managers of closed-end funds is explicitly specified in their contracts as the marginal rate of the funds' net asset value. Using a sample of US closed-end funds from 2006 to 2009, this paper investigates the relationship between the PPS and risk-taking behaviors of fund managers. After controlling for endogeneity, we find that fund return volatility and fund PPS positively determine each other. Furthermore, the positive relationship is more pronounced for closed-end funds engaging in alternative investments or in emerging markets.

Keywords: Closed-end fund; Pay-performance sensitivity; Risk-taking behavior; Alternative investments; Emerging market (search for similar items in EconPapers)
JEL-codes: G23 M12 M52 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1566014116300632
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:29:y:2016:i:c:p:274-288

DOI: 10.1016/j.ememar.2016.08.015

Access Statistics for this article

Emerging Markets Review is currently edited by Jonathan A. Batten

More articles in Emerging Markets Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-03-31
Handle: RePEc:eee:ememar:v:29:y:2016:i:c:p:274-288