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J. H. Golec, “Empirical Tests of a Principal-Agent Model of the Investor-Investment Advisor Relationship,” Journal of Financial and Quantitative Analysis, Vol. 27, No. 1, 1992, pp. 81-95. http://dx.doi.org/10.2307/2331299

has been cited by the following article:

• TITLE: How Do Principal-Agent Effects in Delegated Portfolio Management Affect Asset Prices?

  AUTHORS: Petter N. Kolm

  KEYWORDS: Delegated Portfolio Management; Portfolio Choice; Asset Pricing; Noisy Rational Expectations Equilibrium

  JOURNAL NAME: Journal of Mathematical Finance, Vol.3 No.4, October 17, 2013

  ABSTRACT: We investigate the impact of delegated portfolio management on asset prices in a noisy rational equilibrium model. Asset prices in our model are linear in fund managers’ private signals and in realized supply shocks. We show that equilibrium expected returns 1) decrease as the proportion of fund managers increase in the economy; 2) decrease as the precision of fund managers’ signals increase’ and 3) increase as the fund managers’ contingent fees increase.