The journey is the reward: A study of corporate site visits and mutual fund performance

Zhuang Zhuang, Xin Hong and Juan Yao

Pacific-Basin Finance Journal, 2023, vol. 82, issue C

Abstract: Institutional investors often visit corporate sites to conduct first-hand assessments of firms' business operations and management quality. We find that corporate site visits contribute significantly to mutual fund performance in China. Our results indicate that corporate site visiting is an important part of mutual funds' stock selection process. Fund managers utilize these visiting activities as a verification channel to affirm their selection of outperforming stocks. The impact on fund performance is stronger when funds are active, have more concentrated equity holdings or invest in small-cap stocks. Performance enhancement is more profound when mutual funds visit firms with high information disclosure quality, and when fund managers have an alumni connection with corporate executives.

Keywords: Mutual fund; Corporate site visits; Fund performance; Fund-holding (search for similar items in EconPapers)
JEL-codes: G12 G2 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:82:y:2023:i:c:s0927538x23002652

DOI: 10.1016/j.pacfin.2023.102194

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