Born after the Volcker Rule: Regulatory change, managerial remuneration and hedge fund performance-Reference-Cited by-同舟云学术

Born after the Volcker Rule: Regulatory change, managerial remuneration and hedge fund performance

Published:2023-09-06 Issue: Volume: Page:
ISSN:1354-7798
Container-title:European Financial Management
language:en
Short-container-title:Euro Fin Management

Author:

Bowe Michael¹²,Kolokolova Olga¹³^ORCID,Yu Lijie¹

Affiliation:

1. Accounting and Finance Division, Alliance Manchester Business School The University of Manchester Manchester UK

2. School of Accounting and Finance University of Vaasa Vaasa Finland

3. Accounting and Finance Department, Lancaster University Management School Lancaster University Lancaster UK

Abstract

AbstractSubstantial remunerative benefits accrue to managers of new hedge funds launched after the implementation of the Volcker Rule if their previous employer is a large US bank. After the rule, ex‐bankers' funds charge higher management fees and receive more flows as compared with other new hedge funds established during the same period. This phenomenon is related to changes in investor perception of the distribution of skills of new fund managers rather than to the actual differences in skills. Ex‐bankers' funds are indistinguishable from other funds in terms of performance, risk, and liquidation probability, both before and after the Volcker Rule.

Publisher

Wiley

Subject

General Economics, Econometrics and Finance,Accounting

Link

https://onlinelibrary.wiley.com/doi/pdf/10.1111/eufm.12457

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