The ABCs of Mutual Funds: A Natural Experiment on Fund Flows and Performance

2003 ◽  
Author(s):  
Vikram K. Nanda ◽  
Z. Jay Wang ◽  
Lu Zheng
Keyword(s):  
Mutual Funds ◽  
Natural Experiment ◽  
Fund Flows ◽  
And Performance

scholarly journals Why do Fund Managers Increase the Lottery-Like Characteristics of the Fund?

2021 ◽  
Vol 50 (6) ◽  
pp. 557-592
Author(s):  
Minyeon Han ◽  
Hyoung-goo Kang ◽  
Kyoung Hun Bae
Keyword(s):  
Mutual Funds ◽  
Fund Flows ◽  
Fund Managers ◽  
And Performance

We investigate why fund managers invest in lottery-like stocks and whether the behavior that holds more lottery-like stocks affects performance. First, mutual funds that hold more lottery stocks may attract more fund flows. Our results support the theory that fund managers invest more in lottery-like stocks to reflect investors' preferences for extreme payoffs. Second, the level of lottery-like characteristics of mutual funds does not predict managers’ skill and performance. Therefore, fund managers holding more lottery stocks is not a result of managers’ skills. Third, lottery-like characteristics of mutual funds do not significantly affect performance in specific reporting periods (e.g., year-end or quarter-end). Based on this result, we conclude that fund managers do not invest more in lottery stocks to advance their career.

How Does Deleveraging Affect Funding Market Liquidity?

2021 ◽  
Author(s):  
Buhui Qiu ◽  
Gary Gang Tian ◽  
Haijian Zeng
Keyword(s):  
Mutual Funds ◽  
Regression Discontinuity ◽  
Cash Holdings ◽  
Market Liquidity ◽  
Fund Flows ◽  
Chinese Stock Market ◽  
Difference In Differences ◽  
Stock Market Crash ◽  
And Performance ◽  
The Impact

How does deleveraging affect the market liquidity of high-embedded-leverage securities issued by financial institutions and the funding constraints of these institutions? We use the forced deleveraging of structured mutual funds during the 2015 Chinese stock market crash to study the effects of deleveraging. Our regression-discontinuity analysis shows that deleveraging significantly reduces the market liquidity of the deleveraging funds’ equity units. Moreover, our difference-in-differences analysis shows that deleveraging results in large decreases in subsequent fund flows, stock and cash holdings, and performance, with the impact channeled through the deterioration of the market liquidity of the fund’s equity units. This paper was accepted by Victoria Ivashina, finance.

Star Rating, Fund Flows and Performance Predictability - Evidence from Norway

2019 ◽  
Author(s):  
Linn K. Aasheim ◽  
Antonio Freitas Miguel ◽  
Sofia Brito Ramos
Keyword(s):  
Fund Flows ◽  
Star Rating ◽  
And Performance
Sign in / Sign up

Export Citation Format

Share Document