Systemic Risk, Idiosyncratic Risk and Mutual Fund Flows

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DOI: 10.4236/jss.2015.33003    3,001 Downloads   3,461 Views   Citations

ABSTRACT

Is risk-taking behavior of Fund managers to consider for their own benefit maximization? Based the unbalanced panel data of 2004-2012 in China fund market, we empirically examine the relation between fund risk and fund managers reward. The results show that the fund choosing higher risk will not bring decreasing investment cash flow, and the investors generally show a “reward” attitude to high-risk funds. Furthermore, we find fund managers reward is a result of taking greater systemic risk.

Cite this paper

Jiang, Z. , Tian, Y. and Zheng, H. (2015) Systemic Risk, Idiosyncratic Risk and Mutual Fund Flows. Open Journal of Social Sciences, 3, 14-17. doi: 10.4236/jss.2015.33003.

Conflicts of Interest

The authors declare no conflicts of interest.

References

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