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Asymmetric Flow-performance Relationship: Case of Chinese Equity Funds

Author

Listed:
  • Zia-ur-Rehman Rao

    (School of Accounting, Dongbei University of Finance and Economics, Dalian, China)

  • Muhammad Zubair Tauni

    (School of Accounting, Dongbei University of Finance and Economics, Dalian, China)

  • Ajid ur Rehman

    (School of Accounting, Dongbei University of Finance and Economics, Dalian, China)

Abstract

We investigate the relationship of fund flow and fund performance by using the sample of 557 Chinese equity mutual funds for the period of 11-year. We apply fund fixed effect regression model on unbalanced panel data and find that relationship between fund flow and fund performance is positive. Like previous studies, our findings also exhibit the asymmetric flow-performance relationship which implies that investors' response is more sensitive to good past performance as compared to bad past performance. Furthermore, size and age of fund weaken the flow-performance relationship.

Suggested Citation

  • Zia-ur-Rehman Rao & Muhammad Zubair Tauni & Ajid ur Rehman, 2016. "Asymmetric Flow-performance Relationship: Case of Chinese Equity Funds," International Journal of Economics and Financial Issues, Econjournals, vol. 6(2), pages 492-496.
    • Handle: RePEc:eco:journ1:2016-02-18
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    References listed on IDEAS

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    Cited by:

    1. Marwa Zouaoui, 2019. "Selectivity and Market Timing Ability of Fund Managers: Comparative Analysis of Islamic and Conventional HSBC Saudi Mutual Funds," IJFS, MDPI, vol. 7(3), pages 1-19, September.

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    More about this item

    Keywords

    Fund Flow; Mutual Funds; China; Flow-performance Relationship;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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