Accounting and Finance Department Research Seminar

Friday, April 04, 2025 at 9:30am to 10:45am

The Department of Accounting & Finance announces the following research seminar.

Speaker: Professor. Xiao Cen (Texas A&M University)
Title: Fund Flows and Income Risk of Fund Managers
Date: Friday, April 4, 2025
Time: 9:30am-10:45am

Location: via Zoom Meeting
Meeting ID: 438 755 1509
Passcode: 20210211

Abstract:

We develop a unique dataset, the first-ever of its kind, by leveraging the U.S. Census Bureau’s LEHD program and various big textual data sources, to examine the factors influencing the compensation and career trajectories of US active equity mutual fund managers. We find that managers’ compensation is primarily determined by assets under management (AUM), with return performance directly influencing bonuses beyond its impact on AUM. Despite not aligning with client interests, fund flows significantly affect manager compensation and career outcomes. Large fund outflows increase a manager’s likelihood of job turnover (with a substantial decline in compensation) by 4 percentage points.

For additional information, please contact Prof. Hongkang Xu 

Zoom
Hongkang Xu
hxu5@umassd.edu