Received April 5, 2016 Revised May 10, 2016 Approved June 18, 2016 The financial surface of the globe at all times reveals a weird balanced impact of the public investment preferences, their understanding about the investment requirements, their anticipation of returns on their investments etc. Perhaps forecasting the growth of the business world would be crucial without an apposite comprehensi...

Using survey-based measures of loss aversion of mutual fund managers, we study the effects of institutional investor preferences on their investment decisions, performance, and career outcomes. Funds managed by managers with higher aversion to losses take on less downside risk and have lower risk-adjusted returns. More loss averse managers are more likely to have their contracts terminated. Our...

During the post 1990 period, service sector in most of the Asian economies witnessed growth fueled by significant changes in their financial sector. India is now being ranked as one of the fastest growing economy of the world. During last one decade or so, role of Indian insurance and mutual fund industry as a significant financial service in financial market has really been noteworthy. In fact...

Mutual fund investors desire high risk-adjusted performance at low cost, which may not necessarily be the objective of fund families. Fund families want to maximize assets under management (i.e., their market share) and the resulting management fees. This paper studies the extent to which conflicts of interest are mitigated by competition in the mutual fund industry using the universe of U.S. m...

Mutual Fund industry plays a pivotal role in optimal allocation and channelization of available idle resources in the economy. This role becomes much stronger in the developing economies like Pakistan where the prospective investors do not have much investment knowledge, information, and facilities to invest in the capital markets neither they have risk aptitude for direct investments in risky ...

one of the main functionalities of capital market is to enhance liquidity in the market. mutual funds are modern financial institutions which are designed with the aim of absorbing funds from investors and devote them to buy a variety of securities in order to reduce investment risks, exploit the economies of scale and finally make a reasonable return for investors. regarding effective role of ...

The term reputation appears in our everyday discussions about mutual funds. However, few studies have been done to explore how the mutual fund’s reputation forms and evolves. In this paper, we model fund’s reputation as the market’s belief whether the fund has the information to make profitable investment. We then propose an infinite-horizon model, in which the fund’s reputation can be invested...

Against a backdrop of serious corporate and mutual fund scandals, governmental bodies, institutional and private investors have demanded more effective corporate governance structures procedures and systems. The compliance function is now an integral part of corporate policy and practice. This paper presents the findings from a longitudinal qualitative research study on the introduction of an I...

We empirically investigate the impact of fund flows and managerial turnover on the investment performance of active equity mutual funds. Fund flows have been suggested by Berk and Green (2004) as mechanism that prevents performance persistence. We propose managerial turnover as an alternative explanation. One the one hand, withdrawing money from loser funds and sacking bad fund managers are mea...