132
Views
1
CrossRef citations to date
0
Altmetric
Islamic Finance and Banking

Optimal Carried Interest: Adverse Selection in Islamic and Conventional Venture Capital and Private-Equity Funds

, &

References

  • Axelson, U., P. Strömberg, and M. S. Weisbach. 2009. Why are buyouts levered? The financial structure of private equity funds. The Journal of Finance 64 (4):1549–82. doi:10.1111/j.1540-6261.2009.01473.x.
  • Bashir, A., A. F. Darrat, and M. O. Suliman. 1993. Equity capital, profit sharing contracts, and investment: Theory and evidence. Journal of Business Finance & Accounting 20 (5):639–51. doi:10.1111/j.1468-5957.1993.tb00281.x.
  • Das, S. R., and R. K. Sundaram. 1998. Fee Speech: Adverse Selection and the Regulation of Mutual Funds. No. w6644. Cambridge, MA: National Bureau of Economic Research.
  • Edgeworth, F. Y. 1881. Mathematical psychics: An essay on the application of mathematics to the moral sciences. No. 10, CK. London: Kegan Paul.
  • Elton, E. J., M. J. Gruber, and C. R. Blake. 2003. Incentive fees and mutual funds. The Journal of Finance 58 (2):779–804. doi:10.1111/1540-6261.00545.
  • Flor, C. R., and K. B. Grell. 2013. Venture capital budgeting—Carry and correlation. Journal of Corporate Finance 21:216–34. doi:10.1016/j.jcorpfin.2013.02.004.
  • Goetzmann, W. N., J. E. Ingersoll, and S. A. Ross. 2003. High‐Water Marks and Hedge Fund Management Contracts. The Journal of Finance 58 (4):1685–718. doi:10.1111/1540-6261.00581.
  • Golec, J. H. 1992. Empirical tests of a principal-agent model of the investor-investment advisor relationship. Journal of Financial and Quantitative Analysis 27 (01):81–95. doi:10.2307/2331299.
  • Gollier, C. 2002. Discounting an uncertain future. Journal of Public Economics 85 (2):149–66. doi:10.1016/S0047-2727(01)00079-2.
  • Gompers, P., and J. Lerner. 1999. An analysis of compensation in the US venture capital partnership. Journal of Financial Economics 51 (1):3–44. doi:10.1016/S0304-405X(98)00042-7.
  • Heinkel, R., and N. M. Stoughton. 1994. The dynamics of portfolio management contracts. Review of Financial Studies 7 (2):351–87. doi:10.1093/rfs/7.2.351.
  • Johan, S. A., and D. Najar. 2010. The role of corruption, culture, and law in investment fund manager fees. Journal of Business Ethics 95 (Suppl 2):147–72. Springer Netherlands.
  • Jouaber, K., and M. Mehri. 2012. Agency problems in venture capital contracts: Islamic profit sharing ratio as a screening device. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2181416.
  • Kacperczyk, M., C. Sialm, and L. Zheng. 2008. Unobserved actions of mutual funds. Review of Financial Studies 21 (6):2379–416. doi:10.1093/rfs/hhl041.
  • Kaplan, R. S. 2001. Strategic performance measurement and management in nonprofit organizations. Nonprofit Management and Leadership 11 (3):353–70. doi:10.1002/nml.11308.
  • Litvak, K. 2009. Venture capital limited partnership agreements: Understanding compensation arrangements. The University of Chicago Law Review 76 (1):161–218.
  • Manove, M. A., J. Padilla, and M. Pagano. 2001. Collateral versus project screening: A model of lazy banks. The RAND Journal of Economics 32:726–44. doi:10.2307/2696390.
  • Martí, J., and M. Balboa. 2007. Characterization of the reputation of private equity managers: Evidence in Spain. Journal of Business Venturing 22 (4):453–80.
  • Mathonet, P.-Y., and T. Meyer. 2008. J-Curve exposure: Managing a portfolio of venture capital and private equity funds. Chichester, UK: John Wiley & Sons.
  • Metrick, A., and A. Yasuda. 2010. The economics of private equity funds. Review of Financial Studies 23 (6):2303–41.
  • Phalippou, L., and O. Gottschalg. 2009. The performance of private equity funds. Review of Financial Studies 22 (4):1747–76. doi:10.1093/rfs/hhn014.
  • Sahlman, W. A. 1990. The structure and governance of venture-capital organizations. Journal of Financial Economics 27 (2):473–521. doi:10.1016/0304-405X(90)90065-8.
  • Schmidt, D., and M. Wahrenburg. 2003. Contractual relations between European VC-funds and investors: The impact of reputation and bargaining power on contractual design. CFS Working paper, no. 2003/15.
  • Stiglitz, J. E., and A. Weiss. 1981. Credit rationing in markets with imperfect information. The American Economic Review 71 (3):393–410.
  • Tag El-Din, S. I. 2008. Income Ratio, Risk-Sharing, and the Optimality of Mudarabah. Journal of King Abdulaziz University: Islamic Economics 21 (2):37–59.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.