Download or read book Of Tournaments and Temptations written by Keith C. Brown and published by . This book was released on 1998 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We test the hypothesis that when their compensation is linked to relative performance, managers of investment portfolios likely to end up as quot;losersquot; will manipulate fund risk differently than those managing portfolios likely to be quot;winners.quot; An empirical investigation of the performance of 334 growth-oriented mutual funds during 1976 to 1991 demonstrates that mid-year losers tend to increase fund volatility in the latter part of an annual assessment period to a greater extent than mid-year winners. Further, we show that this effect became stronger as industry growth and investor awareness of fund performance increased over time.