FUND PERFORMANCE AND FUND FLOW. CASE OF CHINA
FUND PERFORMANCE AND FUND FLOW. CASE OF CHINA
Author(s): Zia-Ur-Rehman Rao, Muhammad Zubair TauniSubject(s): Economy
Published by: Universitatea SPIRU HARET - Faculty of Accounting and Financial Management
Keywords: Fund Flow; Mutual funds; China; Flow-Performance Relationship
Summary/Abstract: We investigate the relationship of fund flow and fund performance by using the sample of 557 Chinese equity mutual funds for the period of 11 years. We apply fund fixed effect regression model on unbalanced panel data and find that relationship between fund flow and fund performance is positive. Like previous studies, our findings also exhibit the asymmetric flowperformance relationship which implies that investors’ response is more sensitive to good past performance as compared to bad past performance. Furthermore, size and age of fund weaken the flow-performance relationship.
Journal: Journal of Academic Research in Economics (JARE)
- Issue Year: 8/2016
- Issue No: 1
- Page Range: 146-156
- Page Count: 11
- Language: English
- Content File-PDF
