Article ID Journal Published Year Pages File Type
973293 Pacific-Basin Finance Journal 2006 19 Pages PDF
Abstract

This paper assesses the importance of fund flows in the performance evaluation of Australian international equity funds. Two concepts of fund flows are considered in the context of a conditional asset pricing model. The first measure is net fund flow relative to fund size and the second is net fund flow relative to sector flows. We find that incorporating a fund flow measure relative to the sector flow results in a reduction of measured perverse market timing. The results indicate that, at the individual fund level, cash flows are relevant in assessing management outcomes.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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