The flow-performance relationship around the world

Ferreira, Miguel A.; Keswani, Aneel; Miguel, António F.; Ramos, Sofía

doi:10.1016/j.jbankfin.2012.01.019

Cited by 227 publications

(106 citation statements)

References 35 publications

(22 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Spanish funds also seem to be relatively poor performers. Ferreira, Keswani, Miguel, and Ramos (2012) find average Jensen's alphas for Spanish equity funds of À1.68%, while the sample average for 28 countries is À0.47%. Ferreira, Keswani, Miguel, and Ramos (2012) identify Spain as the worst performer in terms of Jensen's alphas, and the second-to-last in terms of four-factor alphas.…”

Section: Size Of Asset Management Industrymentioning

confidence: 81%

Price support by bank-affiliated mutual funds

Golez

Marín

2015

Journal of Financial Economics

View full text Add to dashboard Cite

Section: Size Of Asset Management Industrymentioning

confidence: 81%

Price support by bank-affiliated mutual funds

Golez

Marín

2015

Journal of Financial Economics

View full text Add to dashboard Cite

“…(Barber, Huang, and Odean, 2016;Sensoy, 2009;Ferreira, Keswani, Miguel Ramos, 2012). These investor behaviors are suboptimal, because mutual fund performance does not persist (e.g., Carhart, 1997;Fama and French, 2010).…”

Section: Resultsmentioning

confidence: 99%

“…Ferreira et al (2012) analyzed the relationship between flows and performance in a group of 28 countries (excluding Israel) and found a convex relationship worldwide between these two factors, with higher convexity in less developed countries.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

The Effect of Performance on Israeli Equity Fund Flows

Arbaa¹,

Varon²,

Ben‐Zion³

2017

AFR

View full text Add to dashboard Cite

This paper examines the influence of past performance on Israeli equity mutual funds' net flows between January 2004 and July 2014, using the most recommended and reliable two-cluster regression methodology. Apparently, Israeli investors are more sensitive to risk adjusted returns than absolute returns and the most recent performance seems to be more influential on fund flows than on longer-term past performance. Moreover, investors flock to the latest winners and do not leave the funds with the poorest performance. The effect of past performance seems to be more salient on flows of advertised funds than of those with no advertisement. The results in Israel augment the scant work on mutual fund flows outside the US and add support to a growing body of literature documenting irrational investor behavior worldwide.

show abstract

“…Given the international nature of the sample, we use country‐specific risk factors, specifically market premium, size, and book‐to‐market international risk factors obtained from Ferreira et al. (, ). The definition of variables GAAP_surprise and NG_adjustment is based on Marques’ () methodology but takes into consideration the measurement issues discussed by Cohen et al.…”

Section: Methodsmentioning

confidence: 99%

Impression Management and Non‐GAAP Disclosure in Earnings Announcements

Guillamón‐Saorín

Isidro

Marques

2017

Business Fin & Account

View full text Add to dashboard Cite

We study the market's reaction to the disclosure of non‐GAAP earnings measures that are combined with high impression management. We construct an impression management score that captures several communication techniques that managers often use to positively bias investors’ perceptions of firm performance. We hand‐collect and code both quantitative and qualitative information from earnings announcement press releases of large European firms. Our results indicate that non‐GAAP measures are informative to capital markets. However, non‐GAAP adjustments are more persistent when accompanied by higher levels of impression management. This evidence is consistent with managers attempting to distort users’ perceptions when non‐GAAP adjustments are of lower quality. Market reaction tests suggest that investors are able to see through managers’ intentions and discount non‐GAAP information that is accompanied by high impression management. Moreover, investors in more sophisticated markets penalize non‐GAAP measures communicated with high impression management. Our results are robust to a battery of sensitivity tests, including the use of a machine‐coded tone measure.

show abstract

The flow-performance relationship around the world

Cited by 227 publications

References 35 publications

Price support by bank-affiliated mutual funds

Price support by bank-affiliated mutual funds

The Effect of Performance on Israeli Equity Fund Flows

Impression Management and Non‐GAAP Disclosure in Earnings Announcements

Contact Info

Product

Resources

About