Asymmetric Flow-Performance Relationship: Case of Chinese Equity Funds

Authors

  • Zia-ur-Rehman Rao Dongbei University of finance and economics, Dalian, China
  • Muhammad Zubair Tauni
  • Ajid ur Rehman

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 flow-performance 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.Keywords: Fund Flow, Mutual funds, China, Flow-Performance RelationshipJEL Classifications: G23, L14

Downloads

Download data is not yet available.

Downloads

Published

2016-04-19

How to Cite

Rao, Z.- ur-R., Tauni, M. Z., & Rehman, A. ur. (2016). Asymmetric Flow-Performance Relationship: Case of Chinese Equity Funds. International Journal of Economics and Financial Issues, 6(2), 492–496. Retrieved from https://econjournals.com.tr/index.php/ijefi/article/view/1936

Issue

Section

Articles
Views
  • Abstract 162
  • PDF 193