New mutual fund managers: Why do they alter portfolios?

Chou, De Wai; Huang, Pei Ching; Lai, Christine W.

doi:10.1016/j.jbusres.2015.12.025

Cited by 8 publications

(4 citation statements)

References 24 publications

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“…First, to review the scientific literature to identify the barriers to ESG investing. Second, to complement that analysis with primary evidence on the actual behavior of fund managers, which is relatively rare in the literature (exceptions include Liao et al, 2011, and Chou et al, 2016). Disentangling discourse from practice is relevant for scientific, political, and managerial purposes.…”

Section: Introductionmentioning

confidence: 99%

Why don't asset managers accelerate ESG investing? A sentiment analysis based on 13,000 messages from finance professionals

Zeidan

2022

Bus Strat Env

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Mitigating climate change effects requires investors (and their proxies, fund managers) to shift their business‐as‐usual strategies. This article analyzes Environmental, Social, and Governance (ESG) investing behavior through more than 13,000 messages exchanged by finance professionals from 2017 to 2020. There is a consensus that low and high ESG firms' discrimination is a necessary but not sufficient condition for ESG investing. Moreover, it is one thing for fund managers to claim that they are integrating ESG factors in their portfolios and another to do it properly. The restriction of the strategy space, internal and external transaction costs, and data quality are still viewed as overwhelming obstacles for seamlessly integrating ESG into financial portfolios. Sentiment analysis indicates that asset managers hold a negative view of ESG investing, surprising as ethical investing is becoming increasingly common. Unlocking the potential positive externalities from ESG investing may require regulators and investors' actions to improve the quality of information disclosure and pressure fund managers into incorporating nonfinancial criteria in their investment models.

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Section: Introductionmentioning

confidence: 99%

Why don't asset managers accelerate ESG investing? A sentiment analysis based on 13,000 messages from finance professionals

Zeidan

2022

Bus Strat Env

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“…Several studies have already researched the performance and management of investment funds, such as the works of Hooks (1996), Jagric et al (2007), Bertin and Prather (2009), Castro and Minardi (2009), Füss et al (2009), Ferreira et al (2013), Malaquias and Eid (2014), Berggrun and Lizarzaburu (2015) and Chou et al (2016). Despite of this, in theoretical terms, the results of this study have the potential to advance the literature on investment funds because it was addressed the performance of investment funds considering a strategic perspective.…”

Section: Introductionmentioning

confidence: 90%

Strategy, tax planning and liquidity constraints in investment funds

Malaquias

Junior

2019

JES

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Purpose The purpose of this paper is to analyze the effect of the interaction between liquidity constraints and tax planning on the performance of Brazilian investment funds, since liquidity constraints reduce precipitated withdrawals, allowing tax planning operationalization. Design/methodology/approach The sample of this study is comprised of 8,008 Brazilian multimarket funds, considering the period from January 2004 to September 2017. The authors considered tax planning, lockup periods and minimum balance of investment as independent variables, and the authors used the Sharpe ratio as a proxy for performance. To test the study hypothesis, the authors employed regression models with panel data. Findings The main findings indicate some evidences that investment funds which implement, at the same time, liquidity constraints with tax planning have an extra risk-adjusted return index. This result can represent a premium registered by investment funds with have enough resources to achieve competitive advantage. Nevertheless, the result for the main hypothesis was not robust to different forms of performance measurement. Originality/value This study promotes an interaction between finance and organizational strategy, since it employs aspects of strategy theories to support the implications that the internal resources of investment funds, such as their liquidity constraints and tax planning, may exert on their performance. In addition, this study advances by providing new evidences about liquidity constraints in investments funds, which have the potential to contribute with the operationalization of strategy and tax planning of funds’ managers.

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“…Our approach also shares the logic of Chou et al (2016), who study new mutual fund managers' performance after they chose to alter their portfolio composition. We follow both Baker et al ( 2010) and Feng and Johansson (2015) and conduct a direct examination of a mutual fund manager's stock selection ability using SEOs.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Mutual funds’ selective participation and subsequent performance of seasoned equity offerings

Feng

Chan

2018

Empir Econ

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We study the stock-picking ability of the mutual fund industry in China based on its selective participation in the SEO market. Mutual funds, as an industry, have selection ability if SEO firms with more subscriptions by mutual funds have better future performance than those with fewer subscriptions. To isolate the effect of mutual funds' favorable opinions about the future performance of an SEO firm, we use a statistical model to exclude the impact of a set of extensive factors on the decision to subscribe to an SEO. We use the model residuals as the ex ante favorable expectations about SEO firms by the mutual fund industry. Our findings suggest that those SEO firms being favored by the mutual fund industry perform statistically and economically significantly better than those SEO firms not favored by the industry. Investors can draw valuable inferences from mutual funds' aggregate decision to participate in the SEO offer market.

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New mutual fund managers: Why do they alter portfolios?

Cited by 8 publications

References 24 publications

Why don't asset managers accelerate ESG investing? A sentiment analysis based on 13,000 messages from finance professionals

Why don't asset managers accelerate ESG investing? A sentiment analysis based on 13,000 messages from finance professionals

Strategy, tax planning and liquidity constraints in investment funds

Mutual funds’ selective participation and subsequent performance of seasoned equity offerings

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