“…The first strand investigates internal signals affecting the retention and promotion of managers (e.g., Weisbach 1988;Fee, Hadlock, and Pierce 2006;Lehn and Zhao 2006;and Cichello, Fee, Hadlock, and Sonti 2009). The asset management profession provides a unique context for labor market research with a well-tracked investment performance for individual fund managers (e.g., see Khorana 1996;and Chevalier and Ellison 1999). Consistent with these studies, we find that better performing managers are retained and promoted while poorly performing ones are fired.…”