The Performance of Overconfident Fund Managers

Chow, Edward H.; Lin, Hsiao-Mei; Lin, Yo-Min; Weng, Yin-Che

doi:10.2753/ree1540-496x470202

Cited by 14 publications

(6 citation statements)

References 12 publications

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“…However, if experienced investors are subject to overconfidence bias, it can be due to high trading activity after a good past performance. Chow et al (2011) stated that when the performance is good, overconfident investors increase their investment levels. Following that, their performance declined.…”

Section: Behavioral Biases and Investment Decision-makingmentioning

confidence: 99%

A Bibliometric Overview of Fund Managers’ Bias: Research Contributions and Influence

Kumari,

Parashar,

Sangma

2024

Journal of Operations and Strategic Planning

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The study aims to comprehensively examine the behavioral biases of fund managers by conducting a bibliometric analysis of research papers published during the years 2011–2022 from the Scopus database based on the keywords searched for behavioral biases of fund managers. One hundred and thirty-five articles have been chosen after careful review. This article explains the most cited articles, top authors, leading countries, prolific journals, and important keywords. This study has identified 10 different types of behavioral biases which are summarized in this article. In this review article, we only considered the journal articles excluding conference publications, editorials, and book chapters. This article is based on the existing literature on behavioral biases in investment decision-making processes. This study will be helpful for researchers and academicians to understand the impact of behavioral biases on investment decisions and to reduce it. Finally, this research will provide a roadmap for future research.

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Section: Behavioral Biases and Investment Decision-makingmentioning

confidence: 99%

A Bibliometric Overview of Fund Managers’ Bias: Research Contributions and Influence

Kumari,

Parashar,

Sangma

2024

Journal of Operations and Strategic Planning

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“…In the previous literature on institutional investment management some controversy surrounds the relation between turnover and performance. Some studies do not support a high turnover ratio in mutual fund management, since a higher level has no significant effect on fund performance (Golec, 1996;Gottesman and Morey, 2007;Ippolito, 1989), or may even be negative (Chow et al 2011;Elton et al, 1993). In addition, Carhart (1997) considers turnover ratio as a proxy of trading costs, and observes that fund performance is reduced in every buy-and-sell transaction.…”

Section: Introductionmentioning

confidence: 99%

Institutional investment management: An investor's perspective on the relation between turnover and performance

Mingo‐López

Matallín‐Sáez

2018

Investment Analysts Journal

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The main aim of this study is to analyse the relationship between turnover and performance in institutional investment management. For a sample of US equity mutual funds during the period January 1999-December 2014, we show that high-turnover funds do not beat low-turnover funds, since their performances are no different, or even significantly lower. Moreover, we show that investing in past high-turnover mutual funds provides investors with significantly worse results than investing in previously low-turnover funds. Investors aiming to enhance their risk-adjusted returns should therefore consider the turnover ratio level in their fund investment decisions.

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“…In the previous literature on institutional investment management some controversy surrounds the relation between turnover and performance. Some studies do not support a high turnover ratio in mutual fund management, since a higher level has no significant effect on fund performance (Golec, 1996;Gottesman and Morey, 2007;Ippolito, 1989), or may even be negative (Chow et al 2011;Elton et al, 1993). In addition, considers turnover ratio as a proxy of trading costs, and observes that fund performance is reduced in every buy-and-sell transaction.…”

Section: Introductionmentioning

confidence: 99%

Demand and management of mutual funds

López¹,

Víctor²

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The Performance of Overconfident Fund Managers

Cited by 14 publications

References 12 publications

A Bibliometric Overview of Fund Managers’ Bias: Research Contributions and Influence

A Bibliometric Overview of Fund Managers’ Bias: Research Contributions and Influence

Institutional investment management: An investor's perspective on the relation between turnover and performance

Demand and management of mutual funds

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