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Institutional investment flows and the determinants of top fund manager turnover
Author(s) -
Dishi Elor,
Gallagher David R.,
Parwada Jerry T.
Publication year - 2007
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/j.1467-629x.2006.00204.x
Subject(s) - business , manager of managers fund , target date fund , investment management , fund administration , finance , portfolio , investment fund , closed end fund , investment (military) , pension fund , management fee , turnover , control (management) , index fund , open end fund , economics , pension , institutional investor , management , corporate governance , politics , market liquidity , political science , law
This study examines how the termination of superannuation investment mandates contributes to the departure of top fund managers in companies delegated the portfolio management role. Terminations of superannuation plan mandates increase the probability of a fund company changing the responsible fund manager. Objective‐adjusted returns are also significant managerial turnover considerations. These results illustrate that significant losses of superannuation fund clients act as an external control mechanism in the investment management industry that complements internal managerial performance measures.