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Record W1566359812 · doi:10.1108/15265940810853904

Reputation entrenchment or risk minimization?

2008· article· en· W1566359812 on OpenAlexaff
Xun Li, Zhenyu Wu

Bibliographic record

VenueThe Journal of Risk Finance · 2008
Typearticle
Languageen
FieldEconomics, Econometrics and Finance
TopicFinancial Markets and Investment Strategies
Canadian institutionsUniversity of Saskatchewan
Fundersnot available
KeywordsAgency (philosophy)Asset allocationPrincipal–agent problemReputationEconomicsPortfolioInvestment strategyMicroeconomicsInvestment managementBusinessRisk managementAsset (computer security)OriginalityPrincipal (computer security)Actuarial scienceVariance (accounting)FinanceIncentiveComputer scienceCorporate governanceAccounting

Abstract

fetched live from OpenAlex

Purpose One of the agency conflicts between investors and managers in fund management is reflected by risk‐taking behaviors led by their different goals. The investors may stop their investments in risky assets before the end of the investment horizon to minimize risk, while the managers may do so to entrench their reputation so as to pursue better opportunities in the labor market. This study aims to consider a one principal‐one agent model to investigate this agency conflict. Design/methodology/approach The paper derives optimal asset allocation strategies for both parties by extending the traditional dynamic mean‐variance model and considering possibilities of optimal early stopping. Doing so illustrates the principal‐agent conflict regarding risk‐taking behaviors and managerial investment myopia in fund management. Practical implications This paper not only paves the way for further studies along this line, but also presents results useful for practitioners in the money management industry. Findings According to the theoretical analysis and numerical simulations, the paper shows that potential early stop can make the agency conflict worsen, and it proposes a way to mitigate this agency problem. Originality/value As one of the exploratory studies in investigating agency conflict regarding risk‐taking behaviors in the literature, this study makes multiple contributions to the literature on fund management, asset allocation, portfolio optimization, and risk management.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame machine prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.

metaresearch head score (Codex)0.004
metaresearch head score (Gemma)0.022
Version: metacan-v3-hybrid-931329e0061cValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Observational · Consensus signal: none
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.008
Threshold uncertainty score0.026

Distilled classifier scores by category (both heads)

CategoryCodexGemma
Metaresearch0.0040.022
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0010.001
Bibliometrics0.0010.001
Science and technology studies0.0010.004
Scholarly communication0.0040.005
Open science0.0010.002
Research integrity0.0020.002
Insufficient payload (model declined to judge)0.0080.001

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.026
GPT teacher head0.215
Teacher spread0.188 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designObservational
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations10
Published2008
Admission routes1
Has abstractyes

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