Board Holdings, Compensation and Mutual Fund Manager Turnover

Eric Fricke ()

Journal of Financial Services Research, 2015, vol. 47, issue 3, 295-312

Abstract: This paper examines the relationship between board holdings, compensation and the turnover of underperforming mutual fund managers. Previous studies find that some fund managers consistently underperform their peers over long periods of time. The presence of these consistent underperforming funds might be partially explained by ineffective monitoring whereby board interests are not aligned with those of shareholders. Based on 2003 data collected from 606 mutual funds, our results provide evidence that underperforming fund managers have a lower probability of being replaced when their boards have lower holdings and higher compensation. Copyright Springer Science+Business Media New York 2015

Keywords: Mutual funds; Board of directors; Manager turnover; G23; G34 (search for similar items in EconPapers)
Date: 2015
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DOI: 10.1007/s10693-014-0196-4

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