University of Rochester
Simon School of Business
500 Wilson BLVD
Carol Simon Hall
Box 270100 (Room CS3-312)
Information about this author at RePEc
NBER Working Papers and Publications
|April 2017||Are Mutual Fund Managers Paid For Investment Skill?|
with Markus Ibert, Stijn Van Nieuwerburgh, Roine Vestman: w23373
Compensation of mutual fund managers is paramount to understanding agency frictions in asset delegation. We collect a unique registry-based dataset on the compensation of Swedish mutual fund managers. We find a concave relationship between pay and revenue, in contrast to how investors compensate the fund company (firm). We also find a surprisingly weak sensitivity of pay to performance, even after accounting for the indirect effects of performance on revenue. Firm-level revenues and profits add substantial explanatory power for compensation to manager-level revenue and performance, highlighting the importance of the mutual fund firm.
|September 2010||The Importance of Being an Optimist: Evidence from Labor Markets|
with Cade Massey, David T. Robinson: w16328
Dispositional optimism is a personality trait associated with individuals who believe, either rightly or wrongly, that in general good things tend to happen to them more often than bad things. Using a novel longitudinal data set that tracks the job search performance of MBA students, we show that dispositional optimists experience significantly better job search outcomes than pessimists with similar skills. During the job search process, they spend less effort searching and are offered jobs more quickly. They are choosier and are more likely to be promoted than others. Although we find optimists are more charismatic and are perceived by others to be more likely to succeed, these factors alone do not explain away the findings. Most of the effect of optimism on economic outcomes stems from t...