Information and investment under uncertainty

Ariadna Dumitrescu () and Javier Gil-Bazo

Economics Letters, 2016, vol. 148, issue C, 17-22

Abstract: In a model of mutual fund investor learning about managerial ability, we investigate how investment decisions depend on both past returns and non-return information. We show that non-return information affects investors’ reliance on past returns as well as their decision to participate. Our results have important consequences for the relationship between flows of money and past fund performance.

Keywords: Mutual funds; Investor learning; Flow-performance relationship; Persuasion (search for similar items in EconPapers)
JEL-codes: G11 G20 G23 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:148:y:2016:i:c:p:17-22

DOI: 10.1016/j.econlet.2016.08.043

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