Casal S, Ploner M, Sproten A (2019)
Publication Type: Journal article
Publication year: 2019
Book Volume: 57
Pages Range: 600-616
Journal Issue: 1
DOI: 10.1111/ecin.12575
Asset management often involves a conflict of interests between investors and fund managers. A main goal of financial regulators is to identify and mitigate this conflict. This article focuses on measures that may foster protection of investors' interests. In an experiment capturing the essential elements of asset management, we find that managers' accountability does not prevent their opportunistic behavior if not backed by a threat of punishment. Further, investors inefficiently sanction managers if not completely aware of managers' choices. To effectively protect investors in financial intermediations, financial regulators should ensure both managers' accountability and a credible sanctioning system.
APA:
Casal, S., Ploner, M., & Sproten, A. (2019). FOSTERING THE BEST EXECUTION REGIME: AN EXPERIMENT ABOUT PECUNIARY SANCTIONS AND ACCOUNTABILITY IN FIDUCIARY MONEY MANAGEMENT. Economic Inquiry, 57(1), 600-616. https://dx.doi.org/10.1111/ecin.12575
MLA:
Casal, Sandro, Matteo Ploner, and Alec Sproten. "FOSTERING THE BEST EXECUTION REGIME: AN EXPERIMENT ABOUT PECUNIARY SANCTIONS AND ACCOUNTABILITY IN FIDUCIARY MONEY MANAGEMENT." Economic Inquiry 57.1 (2019): 600-616.
BibTeX: Download