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Asset Management and Investment Banking

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dc.contributor.authorBerzins, Janis
dc.contributor.authorLiu, Crocker H.
dc.contributor.authorTrzcinka, Charles
dc.date.accessioned2020-09-12T21:07:18Z
dc.date.available2020-09-12T21:07:18Z
dc.date.issued2013-04-26
dc.description.abstractWe 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.
dc.description.legacydownloadsLiu1_Asset_management.pdf: 137 downloads, before Aug. 1, 2020.
dc.identifier.other9285239
dc.identifier.urihttps://hdl.handle.net/1813/72019
dc.language.isoen_US
dc.relation.doihttps://doi.org/10.1016/j.jfineco.2013.05.001
dc.relation.hasversionBerzins, J., Liu, C. H., & Trzcinka, T. (2013). Asset management and investment banking. Journal of Financial Economics, 110(1), 215-231. doi:10.1016/j.jfineco.2013.05.001
dc.relation.isversionofAn earlier version of this item is also available in eCommons.
dc.relation.urihttps://hdl.handle.net/1813/70903
dc.rightsRequired Publisher Statement: © Elsevier. Final version published as: Berzins, J., Liu, C. H., & Trzcinka, T. (2013). Asset management and investment banking. Journal of Financial Economics, 110(1), 215-231. doi:10.1016/j.jfineco.2013.05.001 Reprinted with permission. All rights reserved.
dc.subjectinvestment banks
dc.subjectinstitutional funds
dc.subjecthedge funds
dc.subjectmutual funds
dc.subjectperformance evaluation
dc.titleAsset Management and Investment Banking
dc.typearticle
local.authorAffiliationBerzins, Janis: BI Norwegian Business School
local.authorAffiliationLiu, Crocker H.: chl62@cornell.edu Cornell University School of Hotel Administration
local.authorAffiliationTrzcinka, Charles: Indiana University

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