Do mutual fund flows drive the disposition behaviour of fund managers?

Min Hsien Chiang, Hsin Yi Huang

Research output: Contribution to journalArticle

Abstract

This study examines the relationship between fund flows and the disposition behaviour of fund managers. During our sample period of 1996-2014, we find that the disposition biases of fund managers are significantly and negatively correlated with unexpected fund flows but insignificantly correlated with expected fund flows. Additionally, funds embedded with a higher capital gains tax overhang tend to have managers with lower disposition biases. Further evidence shows that fund performance is influenced more by the flow-induced than the nonflow- induced disposition behaviour of fund managers.

Original languageEnglish
Pages (from-to)311-323
Number of pages13
JournalInvestment Analysts Journal
Volume46
Issue number4
DOIs
Publication statusPublished - 2017 Jan 1

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance
  • Economics and Econometrics

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