Investors’ distraction and strategic repricing decisions
نویسندگان
چکیده
منابع مشابه
Investors' Distraction and Strategic Re-pricing Decisions
In this paper, I analyze re-pricing decisions for mutual fund management services. I derive measures of performance and price sensitivity and show that investors do not consider expense ratios simply as a negative component of expected returns: while performance sensitivity monotonically increases with past performance, price-sensitivity does not. Investors that buy top pastperformers seems to ...
متن کاملTHE PSYCHOLOGICAL FORCES BEHIND INVESTORS’ DECISIONS 1 Nudging Investors Big and Small Toward Better Decisions
Investors significantly reduce their future returns by selecting mutual funds with higher fees, allured by higher past returns that do not predict future performance. This suboptimal behavior, which can roughly halve an investor’s retirement savings, is driven by two psychological factors. One factor is difficulty comprehending rate information, which is critical given that mutual fund fees and...
متن کاملShareholder Monitoring with Strategic Investors
This paper provides a generalization of the theory of shareholder monitoring, originally developed by Admati, Pfleiderer, and Zechner (1994). An activist shareholder can trade with a finite number of strategic passive investors. If there are only a few investors, then their strategic behavior leads to an allocation of shares that increases the activist investor’s incentive to monitor, which is ...
متن کاملAsset allocation decisions of mutual fund investors
I extend the Warther (1995) evidence to show that stock market returns are related to contemporaneous flows into mutual funds that invest in risky stocks and bonds, but are unrelated to flows into funds that invest in safer stocks and bonds. I examine whether common sources of predictability in returns and flows can explain this contemporaneous relation. I find that variables with predictive ab...
متن کاملStrategic Decisions and Intelligent Tools
The success of the strategy formulation process is strictly contingent on the reliability and exhaustiveness of the information a strategist relies on. This paper investigates the Internet as a potential resource of the strategically important information and software intelligent agents as a tool for information retrieval. Though the potential usefulness of the Internet is recognized by the bus...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of Banking & Finance
سال: 2012
ISSN: 0378-4266
DOI: 10.1016/j.jbankfin.2011.11.018