Agency and Transparency in Financial Markets

Volume: 21 Number: 2 October 14, 2015
Journal of Management and Economics Cover
Journal of Management and Economics
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Agency and Transparency in Financial Markets

Abstract

We analyze incentive effects of transparency on delegated portfolio management. When portfolio return is observable, disclosure of portfolio composition decreases expected return and lowers the investor's ability to identify the manager's actual type. More information about the portfolio return before renewal of management agreement also decreases expected return, while, conditionally, it may provide more information about manager's actual ability.

Keywords

References

  1. AGARWAL, Vikas, WEI, Jiang, YUEHUA, Tang and Yang BAOZHONG (2013), “Uncovering Hedge Fund Skill from the Portfolio Holdings They Hide”, Journal of Finance, 68 (2), 739-783.
  2. CHEVALIER, Judith and Glenn ELLISON (1997), “Risk Taking by Mutual Funds as a Response to Incentives”, Journal of Political Economy, 105, 1167-1200.
  3. CREMER, Jacques (1995), “Arm's Length Relationships”, Quarterly Journal of Economics, 110(2), 275-95.
  4. FOX, Justin and Richard V. WEELDEN (2012), “Costly Transparency”, Journal of Public Economics, 96, 142-150.
  5. HERMALIN, Benjamin (1993), “Managerial Preferences Concerning Risky Projects”, Journal of Law, Economics and Organization, 9, 127-135.
  6. MASKIN, Eric and Jean TIROLE (2004), “The politician and the judge”, The American Economic Review, 94(4), 1034-1054.
  7. PALOMINO, Frédéric, and Andrea PRAT (2003), “Risk Taking and Optimal Contracts for Money Managers” RAND Journal of Economics, 34, 113-37.
  8. PRAT, Andrea (2005), “The Wrong Kind of Transparency”, The American Economic Review, 95(3), 862-877.

Details

Primary Language

English

Subjects

-

Journal Section

-

Authors

Publication Date

October 14, 2015

Submission Date

October 14, 2015

Acceptance Date

-

Published in Issue

Year 2014 Volume: 21 Number: 2

DOI

https://doi.org/10.18657/yecbu.25947

IZ

https://izlik.org/JA52CE34HA

Cite

RIS / Bibtex
APA
Çitçi, S. (2015). Agency and Transparency in Financial Markets. Yönetim Ve Ekonomi Dergisi, 21(2), 269-279. https://doi.org/10.18657/yecbu.25947
AMA
1.Çitçi S. Agency and Transparency in Financial Markets. Yönetim ve Ekonomi Dergisi. 2015;21(2):269-279. doi:10.18657/yecbu.25947
Chicago
Çitçi, Sadettin. 2015. “Agency and Transparency in Financial Markets”. Yönetim Ve Ekonomi Dergisi 21 (2): 269-79. https://doi.org/10.18657/yecbu.25947.
EndNote
Çitçi S (October 1, 2015) Agency and Transparency in Financial Markets. Yönetim ve Ekonomi Dergisi 21 2 269–279.
IEEE
[1]S. Çitçi, “Agency and Transparency in Financial Markets”, Yönetim ve Ekonomi Dergisi, vol. 21, no. 2, pp. 269–279, Oct. 2015, doi: 10.18657/yecbu.25947.
ISNAD
Çitçi, Sadettin. “Agency and Transparency in Financial Markets”. Yönetim ve Ekonomi Dergisi 21/2 (October 1, 2015): 269-279. https://doi.org/10.18657/yecbu.25947.
JAMA
1.Çitçi S. Agency and Transparency in Financial Markets. Yönetim ve Ekonomi Dergisi. 2015;21:269–279.
MLA
Çitçi, Sadettin. “Agency and Transparency in Financial Markets”. Yönetim Ve Ekonomi Dergisi, vol. 21, no. 2, Oct. 2015, pp. 269-7, doi:10.18657/yecbu.25947.
Vancouver
1.Sadettin Çitçi. Agency and Transparency in Financial Markets. Yönetim ve Ekonomi Dergisi. 2015 Oct. 1;21(2):269-7. doi:10.18657/yecbu.25947