John C. Adams is an Assistant Professor of Finance in the Department of Finance and Real Estate, College of Business at the University of Texas at Arlington in Arlington, TX. Sattar A. Mansi is the Wells Fargo Professor of Finance in the Department of Finance, Insurance, and Law, Pamplin College of Business at Virginia Tech in Blacksburg, VA. Takeshi Nishikawa is an Assistant Professor of Finance in the School of Business at the University of Colorado Denver, CO.
1755-053X/asset/bannerforeground.jpg?v=1&s=fe490fa03486698018a20f8e20211b6997b05623)
You have free access to this content
Public versus Private Ownership and Fund Manager Turnover
Article first published online: 20 DEC 2012
DOI: 10.1111/j.1755-053X.2012.01220.x
© 2012 Financial Management Association International.
Additional Information
How to Cite
Adams, J. C., Mansi, S. A. and Nishikawa, T. (2013), Public versus Private Ownership and Fund Manager Turnover. Financial Management, 42: 127–154. doi: 10.1111/j.1755-053X.2012.01220.x
The authors would like to thank Bill Christie (Editor), two anonymous referees, and seminar participants at Virginia Tech, University of Texas at Arlington, University of Colorado at Denver, the 2009 Southwestern Finance Association meeting, and the 2010 Financial Management Association meeting for valuable comments and suggestions that greatly improved the study. Mansi acknowledges financial support received from partial summer funding at Virginia Tech. The remaining errors are the sole responsibility of the authors.
- †
John C. Adams is an Assistant Professor of Finance in the Department of Finance and Real Estate, College of Business at the University of Texas at Arlington in Arlington, TX. Sattar A. Mansi is the Wells Fargo Professor of Finance in the Department of Finance, Insurance, and Law, Pamplin College of Business at Virginia Tech in Blacksburg, VA. Takeshi Nishikawa is an Assistant Professor of Finance in the School of Business at the University of Colorado Denver, CO.
Publication History
- Issue published online: 5 MAR 2013
- Article first published online: 20 DEC 2012
References
- , , and , 2010, “Internal Governance Mechanisms and Operational Performance: Evidence from Index Mutual Funds,” Review of Financial Studies 23, 1261–1286.
- and , 2003, “Interaction Terms in Logit and Probit Models,” Economic Letters 80, 123–129.
- , , , and , 2004, “Why Constrain Your Mutual Fund Manager Journal of Financial Economics 73, 289–321.
- , , and , 2003, “Founding Family Ownership and the Agency Cost of Debt,” Journal of Financial Economics 68, 263–285.
- , , and , 2004, “Board Characteristics, Accounting Report Integrity, and the Cost of Debt,” Journal of Accounting and Economics 37, 315–342.
- , , and , 2011, “Does the Stock Market Distort Investment Incentives?” NYU and ECGI Finance Working Paper No. 282/2010.
- and , 1932, The Modern Corporation and Private Property , New York , NY , Macmillan.
- and , 1989, “An Analysis of Stock Price Reaction to Management Change in Distressed Firms,” Journal of Accounting and Economics 11, 95–106.
- , , , and , 2005, “Payout Policy in the 21st Century,” Journal of Financial Economics 77, 483–527.
- , , and , 1996, “Of Tournaments and Temptations: An Analysis of Managerial Incentives in the Mutual Fund Industry,” Journal of Finance 51, 85–110. Direct Link:
- , , and , 2006, “The Importance of Reporting Incentives: Earnings Management in European Private and Public Firms,” Accounting Review 81, 983–1016.
- , 2001, “Do Institutional Investors Prefer Near-Term Earnings Over Longer-Run Value Contemporary Accounting Research 18, 207–246. Direct Link:
- , , , , and , 2011, “CEO Optimism and Forced Turnover,” Journal of Financial Economics 101, 695–712.
- , 1997, “On Persistence in Mutual Fund Performance,” Journal of Finance 52, 57–82. Direct Link:
- and , 1999, “Career Concerns of Mutual Fund Managers,” Quarterly Journal of Economics 114, 389–432.
- , 1999, “The Future as History: The Prospects for Global Convergence in Corporate Governance and its Implications,” Northwestern University Law Review 93, 641–708.
- and , 1995, “Performance Changes Following Top Management Dismissals,” Journal of Finance 50, 1029–1057. Direct Link:
- , , , and , 2011, “The Good or the Bad? Which Mutual Fund Managers Join Hedge Funds Review of Financial Studies 24, 3008–3024.
- and , 2009, “Mutual Fund Performance and Governance Structure: The Role of Portfolio Managers and Boards of Directors,” SUNY Albany Working Paper.
- and . 2007, “Inference with Difference-in-Differences and Other Panel Data,” Review of Economics and Statistics 89, 221–233.
- , 2010, “Mutual Fund Incubation,” Journal of Finance 65, 1581–1611. Direct Link:
- and , 2009, “Agency Costs, Governance, and Organizational Forms: Evidence from the Mutual Fund Industry,” Journal of Banking and Finance 33, 619–626.
- , , and , 1992, “Shareholder Trading Practices and Corporate Investment Horizons,” Journal of Applied Corporate Finance 5, 42–58. Direct Link:
- and , 1987, “The Wealth Effects of Company Initiated Management Changes,” Journal of Financial Economics 18, 147–160.
- , , and , 2005, “Shareholder Investment Horizons and the Market for Corporate Control,” Journal of Financial Economics 76, 135–165.
- , 2003, “Do Better Institutions Mitigate Agency Problems? Evidence from Corporate Finance Choices,” Journal of Financial and Quantitative Analysis 38, 185–212.
- and , 2009, “It Pays to Have Friends,” Journal of Financial Economics 93, 138–158.
- , 1967, “The Performance of Mutual Funds in the Period 1945-1964,” Journal of Finance 23, 389–416. Direct Link:
- , 1996, “Top Management Turnover: An Empirical Investigation of Mutual Fund Managers,” Journal of Financial Economics 40, 403–427.
- , 2001, “Performance Changes Following Top Management Turnover: Evidence from Open-End Mutual Funds,” Journal of Financial and Quantitative Analysis 36, 371–393.
- , , and , 2007, “Board Structure, Mergers, and Shareholder Wealth: A Study of the Mutual Fund Industry,” Journal of Financial Economics 85, 571–598.
- , 2009, “Business Networks, Corporate Governance and Contracting in the Mutual Fund Industry,” Journal of Finance 64, 2185–2220. Direct Link:
- and , 2010, “Protecting Minority Shareholders: Listed versus Unlisted Firms,” Financial Management 39, 33–57. Direct Link:
- , , and , 2010, “When Should Firms Share Credit with Employees? Evidence from Anonymously Managed Mutual Funds,” Journal of Financial Economics 83, 751–792.
- and , 2012, “Corporate Dividend Policies: Lessons from Private Firms,” Review of Financial Studies 25, 711–746.
- , , and , 1995, “Shareholder Heterogeneity, Adverse Selection, and Payout Policy,” Journal of Finance 50, 573–608. Direct Link:
- , , and , 1989, “Alternative Mechanisms for Corporate Control,” American Economic Review 79, 842–852.
- and , 2011, “Capital Allocation by Private and Public Firms,” Southern Methodist University Working Paper.
- , 1997, “CEO Turnover and Outside Succession: A Cross Sectional Analysis,” Journal of Financial Economics 46, 165–197.
- , 1992, “Capital Choices: Changing the Way America Invests in Industry,” Council on Competitiveness/Harvard Business School.
- , 2003, “Termination Risk, Multiple Managers and Mutual Fund Tournaments,” European Finance Review 7, 161–190.
- , 1990, “The Staying Power of the Public Corporation,” Harvard Business Review 68, 96–104.
- and , 1989, “Management Entrenchment: The Case of Manager-Specific Investment,” Journal of Financial Economics 25, 123–139.
- and , 1998, “Costly Search and Mutual Fund Flows,” Journal of Finance, 53, 1589–1622.
- , 2002, “Governance with Poor Investor Protection: Evidence from Top Executive Turnover in Italy,” Journal of Financial Economics 64, 61–90.
- , 1988, “Outside Directors and CEO Turnover,” Journal of Financial Economics 20, 431–460.
- and , 2009, “Institutional Investors and Equity Returns: Are Short-Term Institutions Better Informed Review of Financial Studies 22, 893–924.