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Mutual funds withdraw shield: performance or agency costs driver?

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  • Carlos Francisco Alves
  • Helena Mouta

Abstract

In this paper, using a unique database, we compare the performance of a set of equity mutual funds to a set of equity savings funds, which are similar to equity mutual funds in all but one characteristic: the tax regime that strongly penalizes withdrawals from equity savings funds. We found evidence consistent with the hypothesis that mutual funds less subject to liquidity shocks exhibit higher performances.

Suggested Citation

  • Carlos Francisco Alves & Helena Mouta, 2012. "Mutual funds withdraw shield: performance or agency costs driver?," Economics and Business Letters, Oviedo University Press, vol. 1(1), pages 30-34.
    • Handle: RePEc:ove:journl:aid:9318
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    File URL: https://reunido.uniovi.es/index.php/EBL/article/view/9318
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    References listed on IDEAS

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    9. William N. Goetzmann & Nadav Peles, 1997. "Cognitive Dissonance And Mutual Fund Investors," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 20(2), pages 145-158, June.
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