Work

Skin in the Game versus Skimming the Game: Governance, Share Restrictions, and Insider Flows

Year: 2012

Type: article

Abstract: This paper advances the proposition that share restrictions engender potential conflicts of interest between fund managers and investors. Fund flows predict future fund returns for share-restricted funds, especially among funds with low levels of governance and funds managing insiders’ wealth, providing managers incentive to trade in advance of their clients. Some direct evidence for such managerial action is presented, using proprietary data on managerial investment in their own funds. The evidence suggests that private information about a fund, not necessarily its holdings, may constitute material information, with implications for proper fund governance and disclosure policy concerning managerial actions.

Source: Journal of Financial and Quantitative Analysis

DOI: 10.1017/s0022109015000587

Authors: Gideon Ozik, Ronnie Sadka

Institutions: Ecole des Hautes Etudes Commerciales du Nord, Boston College

Language: English

Topic: Financial Markets and Investment Strategies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: green

OpenAlex ID: W3124697444

FWCI: 5.317

Cites: 36

Cited by: 35

Related to: 10