Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/27220
Authors: 
Gehrig, Thomas P.
Lütje, Torben
Menkhoff, Lukas
Year of Publication: 
2008
Series/Report no.: 
Discussion papers // School of Economics and Management of the Hanover Leibniz University 411
Abstract: 
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.
Subjects: 
Fund managers
incentives
fundamental information
JEL: 
G23
G14
Document Type: 
Working Paper

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