Asset management and investment banking

• 成果类型: Article
• 署名作者: Berzins, Janis; Liu, Crocker H.; Trzcinka, Charles
• 署名单位: Cornell University; Indiana University System; Indiana University Bloomington; IU Kelley School of Business
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2013.05.001
• 发表日期: 2013
• 页码: 215-231
• 关键词: INVESTMENT BANKS; Institutional funds; Hedge funds; Mutual funds; Performance evaluation

摘要

We find evidence that conflicts of interest are pervasive in the asset management business owned by investment banks. Using data from 1990 to 2008, we compare the alphas of mutual funds, hedge funds, and institutional funds operated by investment banks and non-bank conglomerates. We find that, while no difference exists in performance by fund type, being owned by an investment bank reduces alphas by 46 basis points per year in our baseline model. Making lead loans increases alphas, but the dispersion of fees across portfolios decreases alphas. The economic loss is $4.9 billion per year. (c) 2013 Elsevier B.V. All rights reserved.