Date of Award
Spring 4-8-2016
Degree Type
Dissertation
Degree Name
Doctor of Philosophy (PhD)
Department
Finance
First Advisor
Vikas Agarwal
Second Advisor
Conrad Ciccotello
Third Advisor
Gerald Gay
Fourth Advisor
Harley "Chip" Ryan
Abstract
I examine the impact of hedge fund managers selling ownership stakes in their firms to outside owners. Funds with outside owners do not subsequently outperform a matched sample of funds but do attract higher flows, suggesting that managers sell stakes to obtain strategic growth partners. The flow impact is greater for i) funds with lower prior flows or performance, ii) smaller funds, and iii) funds with more reputable outside owners. Outsiders also monitor their investments as funds with outside owners reduce their returns management. The reduction in return management is stronger after the 2008 financial crisis when institutions’ reputations are more tarnished. Combined, the results indicate that outside ownership benefits managers, outsiders, and fund investors.
DOI
https://doi.org/10.57709/8457782
Recommended Citation
Mullally, Kevin, "Outside Ownership in the Hedge Fund Industry." Dissertation, Georgia State University, 2016.
doi: https://doi.org/10.57709/8457782