Just over 20 years have passed since the publication of Mark Carhart's landmark 1997 study
on mutual funds. Its conclusion—that the data did “not support the existence of skilled or …

We empirically analyze the nature of returns to scale in active mutual fund management. We
find strong evidence of decreasing returns at the industry level. As the size of the active …

Historically, the literature on money management has inconsistently applied the rational
expectations equilibrium concept. We explain why and summarize developments in the …

This paper considers the nature of returns to scale in active management following Pástor et
al.(2015) who fail to establish diseconomies of scale at the fund level. Using an enhanced …

We analyze how direct employee voice affects financial leverage. German law mandates
that firms' supervisory boards consist of an equal number of employees' and owners' …

Despite the overwhelming trend in mutual funds toward team management, empirical
studies find no performance benefits for this phenomenon. We show it is caused by large …

To study the role of talent in finance workers' pay, we exploit a special feature of the French
higher education system. Wage returns to talent have been significantly higher and have …

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 …

In recent years, the digital economy and the green economy have become integral parts of
China's economy. Chinese government has been actively expanding its support for the …

We study capital allocations to managers with two mutual funds, and show that investors
learn about managers from their performance records. Flows into a fund are predicted by the …