A review of behavioural and management effects in mutual fund performance

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dc.contributor.author Cuthbertson, Keith
dc.contributor.author Nitzsche, Dirk
dc.contributor.author O'Sullivan, Niall
dc.date.accessioned 2016-04-21T09:26:38Z
dc.date.available 2016-04-21T09:26:38Z
dc.date.issued 2016
dc.identifier.citation CUTHBERTSON, K., NITZSCHE, D. & O'SULLIVAN, N. 2016. A review of behavioural and management effects in mutual fund performance. International Review of Financial Analysis, 44, 162-176. doi: 10.1016/j.irfa.2016.01.016 en
dc.identifier.volume 44 en
dc.identifier.startpage 162 en
dc.identifier.endpage 176 en
dc.identifier.issn 1057-5219
dc.identifier.uri http://hdl.handle.net/10468/2472
dc.identifier.doi 10.1016/j.irfa.2016.01.016
dc.description.abstract This paper surveys and critically evaluates the literature on the role of management effects and fund characteristics in mutual fund performance. First, a brief overview of performance measures is provided. Second, empirical findings on the predictive power of fund characteristics in explaining future returns are discussed. Third, the paper reviews the literature on fund manager behavioural biases and the impact these have on risk taking and returns. Finally, the impact of organizational structure, governance and strategy on both fund risk taking and future performance is examined. While a number of surveys on mutual fund performance are available, these have not focused on the role of manager behavioural biases, manager characteristics and fund management strategic behavior on fund performance and risk taking. This review is an attempt to fill this gap. Empirical results indicate that finding successful funds ex-ante is extremely difficult, if not impossible. In contrast, there is strong evidence that poor performance persists for many of the prior “loser fractile” portfolios of funds. A number of manager behavioural biases are prevalent in the mutual fund industry and they generally detract from returns. en
dc.format.mimetype application/pdf en
dc.language.iso en en
dc.publisher Elsevier B.V. en
dc.relation.uri http://www.sciencedirect.com/science/article/pii/S1057521916300023
dc.rights Copyright © 2016 Elsevier Inc. All rights reserved. This manuscript is made available under the CC-BY-NC-ND 4.0 license. https://creativecommons.org/licenses/by-nc-nd/4.0/ en
dc.rights.uri https://creativecommons.org/licenses/by-nc-nd/4.0/ en
dc.subject Mutual fund performance en
dc.subject Fund characteristics en
dc.subject Manager behavior biases en
dc.subject Manager characteristics en
dc.title A review of behavioural and management effects in mutual fund performance en
dc.type Article (peer-reviewed) en
dc.internal.authorcontactother Niall O'Sullivan, Economics, University College Cork, Cork, Ireland. +353-21-490-3000 Email: niall.osullivan@ucc.ie en
dc.internal.availability Full text available en
dc.check.info Access to this article is restricted until 36 months after publication by the request of the publisher. en
dc.check.date 2019-03-01
dc.date.updated 2016-01-28T11:58:59Z
dc.description.version Accepted Version en
dc.internal.rssid 334519253
dc.description.status Peer reviewed en
dc.identifier.journaltitle International Review of Financial Analysis en
dc.internal.copyrightchecked No !!CORA!! AV permitted by publisher as referenced on Sherpa Romeo and on the publisher's website: "Authors can share their accepted manuscript after the embargo period via non-commercial hosting platforms such as their institutional repository." https://www.elsevier.com/about/company-information/policies/sharing#acceptedmanuscript en
dc.internal.licenseacceptance Yes en
dc.internal.IRISemailaddress niall.osullivan@ucc.ie en


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Copyright © 2016 Elsevier Inc. All rights reserved. This manuscript is made available under the CC-BY-NC-ND 4.0 license. https://creativecommons.org/licenses/by-nc-nd/4.0/ Except where otherwise noted, this item's license is described as Copyright © 2016 Elsevier Inc. All rights reserved. This manuscript is made available under the CC-BY-NC-ND 4.0 license. https://creativecommons.org/licenses/by-nc-nd/4.0/
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