The Determinants of Convexity in the Flow-Performance Relationship: A Study of Pakistani Mutual Funds

Journal of Accounting and Finance in Emerging Economies

卷:8

Shahid Amin¹  Javed Iqbal²  Saleh Nawaz Khan³  Atif Rafique³ 

[1] Department of Commerce, The Islamia University of Bahawalpur, Pakistan;

[2] Government Sadiq Graduate College of Commerce, Bahawalpur, Pakistan;

[3] Institute of Business Management and Administrative Sciences, The Islamia University of Bahawalpur, Pakistan;

关键词: Mutual Funds;    Flows;    Performance;    Convexity;    Fund Marketing;   

DOI  :  10.26710/jafee.v8i1.2162

来源: DOAJ

【 摘 要 】

Purpose: This paper aims to study the potential sources of convexity in the flow-performance relationship curve in the Asian region.Design/Methodology/Approach: The sample for this study includes 75 mutual funds from three broader investment categories: stock funds, balanced funds, and asset allocation funds. The data is collected from the financial reports of the respective funds from 2011 to 2020. The study employs the ordinary least square method on unbalanced panel data. Findings: The findings show that the fund flows are positively associated with fund performance in the Pakistani mutual fund market. The result also confirmed that the shape of the relationship is convex. The fund size and marketing expenditures are positively associated with convexity. However, fund age does not affect the convexity. The Result also confirmed that fund rating is not an appropriate proxy for fund size.Practical Implication- In period of low performance mutual fund management can retain their investors by increasing their marketing expenditures and fund size.Originality/Value: This paper fulfills an identified need to study the sources behind non-linear flow-performance relationship curve in the Asian region. This study also aims to resolve the conflict in literature relating to the fund size on the convexity of the flow performance relationship.                                                     

【 授权许可】

Unknown