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Portfolio Manager Ownership and Mutual Fund Performance
Author(s) -
Evans Allison L.
Publication year - 2008
Publication title -
financial management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.647
H-Index - 68
eISSN - 1755-053X
pISSN - 0046-3892
DOI - 10.1111/j.1755-053x.2008.00023.x
Subject(s) - mutual fund , closed end fund , business , open end fund , fund administration , manager of managers fund , target date fund , fund of funds , finance , income fund , portfolio , shareholder , feeder fund , accounting , institutional investor , corporate governance , market liquidity
This paper examines the association between a mutual fund manager's personal fund investment and mutual fund performance. From a data set of newly released managerial ownership disclosures, I find that fund ownership levels are diverse and, in many instances, quite large. Mutual fund returns are increasing in the level of managerial investment, consistent with personal ownership realigning decision‐maker and shareholder interests. Also consistent with the reduction of agency costs, I find that managerial ownership is inversely related to fund turnover. However, there is no evidence of an association between managerial ownership and a mutual fund's tax burden.