PT  - JOURNAL ARTICLE
AU  - Kyre Dane Lahtinen
AU  - Stephan Shipe
TI  - Compensation of Investment Advisors
AID  - 10.3905/joi.2018.27.1.080
DP  - 2018 Feb 28
TA  - The Journal of Investing
PG  - 80--86
VI  - 27
IP  - 1
4099  - https://pm-research.com/content/27/1/80.short
4100  - https://pm-research.com/content/27/1/80.full
AB  - The use of an investment advisor presents an agency problem: The firm works in the client’s interest while also managing its own growth. We use a dataset of over 30,000 advisor-year observations to investigate the potential for agency problems in the analysis of investment advisor firm characteristics. The compensation structures of investment advisors are not homogenous, varying by services offered. In addition, firm size is a large factor in determining the number of clients an advisory employee serves. This analysis lays the foundation for understanding the compensation component of the investment advisor relationship and the associated agency problem.TOPICS: Manager selection, currency