Dissertation/Thesis Abstract

Flow-performance relationship and tournament behavior in the mutual fund industry
by Ma, Baoling, M.Sc., Singapore Management University (Singapore), 2009, 47; 1478227
Abstract (Summary)

In this paper, we interpret the flow-performance relationship as an incentive scheme implicitly given to mutual fund managers by mutual fund investors. We show that the flow-performance relationship varies not only with economic activity but also across fund attributes. We provide evidence that the degree of convexity of the flow-performance relationship has a positive effect on the magnitude of tournament behavior. Different from the conventional tournament hypothesis, we show that although the convexity of the flow-performance relationship does produce implicit incentives for fund managers to modify risk-taking behavior as a function of their prior performance, whether or not the mid-year losers increase the risk of their portfolios highly depends on the convexity degree of the flow-performance relationship.

Indexing (document details)
Advisor: Tay, Anthony S.
School: Singapore Management University (Singapore)
Department: School of Economics
School Location: Republic of Singapore
Source: MAI 48/06M, Masters Abstracts International
Subjects: Economics, Finance, Banking
Keywords: Financial performance, Flow-performance relationship, Mutual fund flows, Mutual funds, Portfolio management
Publication Number: 1478227
ISBN: 978-1-124-08111-3
Copyright © 2020 ProQuest LLC. All rights reserved. Terms and Conditions Privacy Policy Cookie Policy