Bonus Payments and Fund Managers’ Behaviour: Trans-Atlantic Evidence
Torben Lütje and
Authors registered in the RePEc Author Service: Torben Luetje ()
No 7118, CEPR Discussion Papers from C.E.P.R. Discussion Papers
This questionnaire survey of fund managers in the United States, Germany and Switzerland documents a distinctly positive influence of bonus payments on investment behaviour on both sides of the Atlantic. Higher bonus payments are significantly related to higher working effort but not to risk taking. They also seem to induce fund managers to rely more on fundamental information. Findings within regions are confirmed by Trans-Atlantic evidence as US fund managers receive larger bonuses but also show the effects to a higher degree. The effects documented are stronger for relative than for absolute performance assessment.
Keywords: fund managers; fundamental information; incentives (search for similar items in EconPapers)
JEL-codes: G14 G23 (search for similar items in EconPapers)
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Journal Article: Bonus Payments and Fund Managers' Behavior: Transatlantic Evidence (2009)
Working Paper: Bonus Payments and Fund Managers' Behavior: Trans-Atlantic Evidence (2008)
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