Title :
Market Condition and Mutual Fund Flow-Performance
Author_Institution :
Res. Centre of Financial Manage. & Risk Prevention, Jiangxi Univ. of Finance & Econ., Nanchang, China
Abstract :
In this study we analyze mutual fund flow-performance relation by using a novel sample of Chinese mutual funds and focus on the impact of stock market conditions. we find that the flow-performance relation varies significantly with market conditions and the positive relation is more pronounced during bull markets. The asymmetric flow-performance relation under different market conditions is consistent with Thaler and Johnson´s (1990) the house money effect and the overconfidence hypothesis proposed by Gervais and Odean (2001).
Keywords :
stock markets; Chinese mutual funds; bull markets; house money effect; mutual fund asymmetric flow-performance relation; overconfidence hypothesis; stock market conditions; Equations; Finance; Fluid flow measurement; Mathematical model; Mutual funds; Sensitivity; Stock markets; Chinese Mutual fund; Flow-performance; Overconfidence; the house money effect;
Conference_Titel :
Business Computing and Global Informatization (BCGIN), 2012 Second International Conference on
Conference_Location :
Shanghai
Print_ISBN :
978-1-4673-4469-2
DOI :
10.1109/BCGIN.2012.35
