학회소식
공지사항
[2011년 제 4차] Cross Trading and the Cost of Conflicts of Interest
작성자 : 관리자
조회수 : 1070
게시일 :
2011-12-07
Using a unique dataset we provide new evidence on the significant penalty on client fund performance due to cross trading related conflicts of interest (CINT) experienced by mutual fund advisers: Funds managed by advisers in the top CINT quintile significantly underperform funds managed by advisers in the bottom CINT quintile by 0.83% per year. We document that investor flows are generally insensitive to different CINT measures. We also show that adviser incentives to engage in cross trading are directly related to their opportunities for generating revenues from trading operations, and that adviser governance plays an important monitoring role for cross trading.