Cookies

We use cookies to ensure that we give you the best experience on our website. By continuing to browse this repository, you give consent for essential cookies to be used. You can read more about our Privacy and Cookie Policy.


Durham Research Online
You are in:

Fund family tournament and performance consequences : evidence from the UK fund industry.

Zhang, Zhichao and Ding, Li and Zhou, Si and Fu, Yaoyao (2014) 'Fund family tournament and performance consequences : evidence from the UK fund industry.', Multinational finance journal., 18 (1/2). pp. 43-84.

Abstract

By applying tournament analysis to the UK Unit Trusts data, the results support significant risk shifting in the family tournament; i.e. interim winning managers tend to increase their level of risk exposure more than losing managers. It also shows that the risk-adjusted returns of the winners outperform those of the losers following the risk taking, which implies that risk altering can be regarded as an indication of managers’ superior ability. However, the tournament behaviour can still be a costly strategy for investors, since winners can be seen to beat losers in the observed returns due to the deterioration in the performance of their major portfolio holdings.

Item Type:Article
Keywords:Mutual fund family, Fund performance, Tournament, Risk taking.
Full text:(AM) Accepted Manuscript
Download PDF
(709Kb)
Full text:(VoR) Version of Record
Download PDF
(358Kb)
Status:Peer-reviewed
Publisher Web site:http://www.mfsociety.org/modules/modDashboard/uploadFiles/journals/googleScholar/862.html
Record Created:28 Apr 2014 14:20
Last Modified:10 Nov 2014 16:25

Social bookmarking: del.icio.usConnoteaBibSonomyCiteULikeFacebookTwitterExport: EndNote, Zotero | BibTex
Look up in GoogleScholar | Find in a UK Library