Mutual fund herding and performance: Evidence from China

Yaoyao Fan, Qinhao Song, Rong Guan, Kim Cuong Ly and Yuxiang Jiang

International Review of Financial Analysis, 2024, vol. 95, issue PC

Abstract: We investigate the impact of mutual fund herding on fund performance. Using a novel and dynamic measure of fund-level herding that captures the tendency of a fund manager to imitate the trading decisions of the institutional crowd based on a sample of 3490 mutual funds in China for 21 years between 2003 and 2023, we find that mutual fund herding is negatively related to fund performance. Our empirical results still hold when we employ a battery of methods to mitigate endogeneity issues. Additionally, we find that herding behavior becomes more detrimental to performance when the portfolio managers are older, male and more experienced.

Keywords: Mutual fund performance; Herding; China (search for similar items in EconPapers)
JEL-codes: D80 G11 G23 P20 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1057521924004356
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:95:y:2024:i:pc:s1057521924004356

DOI: 10.1016/j.irfa.2024.103503

Access Statistics for this article

International Review of Financial Analysis is currently edited by B.M. Lucey

More articles in International Review of Financial Analysis from Elsevier
Bibliographic data for series maintained by Catherine Liu ().