Asymmetric Flow-performance Relationship: Case of Chinese Equity Funds

Zia-ur-Rehman Rao, Muhammad Zubair Tauni and Ajid ur Rehman
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Zia-ur-Rehman Rao: School of Accounting, Dongbei University of Finance and Economics, Dalian, China
Muhammad Zubair Tauni: School of Accounting, Dongbei University of Finance and Economics, Dalian, China
Ajid ur Rehman: School of Accounting, Dongbei University of Finance and Economics, Dalian, China

International Journal of Economics and Financial Issues, 2016, vol. 6, issue 2, 492-496

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-year. 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 Relationship (search for similar items in EconPapers)
JEL-codes: G23 L14 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (1)

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