The Role of Corruption, Culture, and Law in Investment Fund Manager Fees
| Autor: | Dorra Najar, Sofia Johan |
|---|---|
| Rok vydání: | 2010 |
| Předmět: |
Finance
Economics and Econometrics 050208 finance business.industry Corruption media_common.quotation_subject 05 social sciences Passive management Venture capital General Business Management and Accounting Private equity fund Private equity Arts and Humanities (miscellaneous) Law 0502 economics and business Economics Performance fee Business and International Management Carried interest business 050203 business & management Investment fund media_common |
| Zdroj: | Journal of Business Ethics. 95:147-172 |
| ISSN: | 1573-0697 0167-4544 |
| DOI: | 10.1007/s10551-011-0852-7 |
| Popis: | This article considers an international sample of venture capital and private equity funds to assess the role of law, corruption, and culture in setting fund manager fees. With better legal conditions, fixed fees are lower, carried interest fees are higher, clawbacks are less likely, and share distributions are more likely. Countries with lower levels of corruption have lower fixed fees and higher performance fees, and are less likely to have clawbacks and cash-only distributions. Hofstede’s measure of power distance is negatively related to fixed fees and the use of cash-only distributions, but positively related to performance fees and clawbacks. Overall, the data strongly indicate that corruption, culture, and legal settings are much more significant in determining fees than fund manager characteristics and/or market conditions. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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