Resource title

Bonus payments and fund managers' behavior: Trans-Atlantic evidence

Resource image

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Resource description

This questionnaire survey of fund managers in the United States, Germany and Switzerland documents a distinctly positive influence of bonus payments on investment behavior 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.

Resource author

Thomas P. Gehrig, Torben Lütje, Lukas Menkhoff

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/27220

Resource license

Adapt according to the presented license agreement and reference the original author.