Arbeitspapier

Delegated portfolio management: a survey of the theoretical literature

This paper provides a selective review of the theoretical literature on delegated portfolio management as a principal-agent relationship. The main focus of the paper is to review the analytical issues raised by the peculiar nature of the delegated portfolio management relationship within the broader class of principalagent models. In particular, the paper discusses the performance of linear vs. nonlinear compensation contracts in a single-period setting, the possible effects of limited liability of portfolio managers, the role of reputational concerns in a multiperiod framework, and the incentives to noise trading. In addition, the paper deals with some general equilibrium dimensions and asset pricing implications of delegated portfolio management. The paper also suggests some directions for future research.

Sprache
Englisch

Erschienen in
Series: ECB Working Paper ; No. 520

Klassifikation
Wirtschaft
Asymmetric and Private Information; Mechanism Design
Portfolio Choice; Investment Decisions
Thema
adverse selection
agency
Delegated portfolio management
Moral Hazard
principal-agent models
Portfolio-Management
Prinzipal-Agent-Theorie
Adverse Selektion
Moral Hazard

Ereignis
Geistige Schöpfung
(wer)
Stracca, Livio
Ereignis
Veröffentlichung
(wer)
European Central Bank (ECB)
(wo)
Frankfurt a. M.
(wann)
2005

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Stracca, Livio
  • European Central Bank (ECB)

Entstanden

  • 2005

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