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Portfolio Pumping and Managerial Structure.
- Source :
- Review of Financial Studies; Jan2021, Vol. 34 Issue 1, p194-226, 33p
- Publication Year :
- 2021
-
Abstract
- Using U.S. equity mutual fund data, we show that portfolio pumping—an illegal trading activity that artificially inflates year- and quarter-end portfolio returns—is more pronounced among single-managed funds compared with team-managed ones. The return inflation by team-managed funds is 45% lower than by single-managed funds at year-ends. Also, portfolio pumping decreases as team size increases. These results are driven by peer effects among teams and, sometimes, amplified by less convex flow-performance relation in team-managed funds. Our findings are robust to differences in fund governance, manager career concerns, local networks, fund family policies, and changes in the SEC's enforcement policies. [ABSTRACT FROM AUTHOR]
- Subjects :
- MUTUAL funds
CORRUPT practices in investments
MUTUAL fund managers
RATE of return
Subjects
Details
- Language :
- English
- ISSN :
- 08939454
- Volume :
- 34
- Issue :
- 1
- Database :
- Complementary Index
- Journal :
- Review of Financial Studies
- Publication Type :
- Academic Journal
- Accession number :
- 147814983
- Full Text :
- https://doi.org/10.1093/rfs/hhaa027