Huang Shiyang,邱志刚,Yang Liyan——JOURNAL OF ECONOMIC THEORY:Institutionalization, delegation, and asset prices
时间:2020-03-01
We study the effects of institutionalization on fund manager compensation and asset prices. Institutionalization raises the performance-sensitive component of the equilibrium contract, which makes institutional investors effectively more risk averse. Institutionalization affects market outcomes through two opposing effects. The direct effect is to bring in more informed capital, and the indirect effect is to make each institutional investor trade less aggressively on information through affectin