Document Type
Article
Language
eng
Publication Date
11-2012
Publisher
Wiley
Source Publication
Financial Review
Source ISSN
0732-8516
Abstract
Abstract
We examine the relation between mutual fund performance and gross flows for a large sample of actively managed U.S. mutual funds. Unlike previous studies that have only examined periods of generally increasing net flows, our sample includes periods of both increasing and decreasing net flows. We find that outflows are related to performance, with investors withdrawing money from poor performers. We also find that outflows and inflows respond asymmetrically to performance, outflows increase more aggressively following poor performance, and inflows increase more aggressively following good performance. Additionally, we find a symmetric performance net flow relation.
Recommended Citation
Cashman, George D.; Deli, Daniel N.; Nardari, Federico; and Villupuram, Sriram V., "Investors Do Respond to Poor Mutual Fund Performance: Evidence from Inflows and Outflows" (2012). Finance Faculty Research and Publications. 118.
https://epublications.marquette.edu/fin_fac/118
Comments
Accepted version. The Financial Review, Vol 47, No. 4 (November 2012): 719-739. DOI. © 2012 John Wiley & Sons, Inc. Used with permission.
George D. Cashman was affiliated with Texas Tech University at the time of publication.