External Monitoring and Dynamic Behavior in Mutual Funds
Joint Authors
Wang, Jian
Wang, Xiaoting
Zhuang, Xintian
Sheng, Jiliang
Source
Mathematical Problems in Engineering
Issue
Vol. 2016, Issue 2016 (31 Dec. 2016), pp.1-8, 8 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2016-09-20
Country of Publication
Egypt
No. of Pages
8
Main Subjects
Abstract EN
This paper studies the impact of external monitoring on the behavior in mutual funds.
Specifically, we investigate how and why external monitoring can alleviate contracting inefficiency caused by information asymmetry between investors and the manager.
It is shown that efficiency loss emerges when investors contract with the manager just relying on her investment return history.
The establishment of external monitoring that provides investors more information about the manager’s ability can improve contracting efficiency, which converges to first-best as external monitoring strengthens.
These results provide strong support for tightening supervision in mutual fund industry.
American Psychological Association (APA)
Wang, Jian& Wang, Xiaoting& Zhuang, Xintian& Sheng, Jiliang. 2016. External Monitoring and Dynamic Behavior in Mutual Funds. Mathematical Problems in Engineering،Vol. 2016, no. 2016, pp.1-8.
https://search.emarefa.net/detail/BIM-1112652
Modern Language Association (MLA)
Wang, Jian…[et al.]. External Monitoring and Dynamic Behavior in Mutual Funds. Mathematical Problems in Engineering No. 2016 (2016), pp.1-8.
https://search.emarefa.net/detail/BIM-1112652
American Medical Association (AMA)
Wang, Jian& Wang, Xiaoting& Zhuang, Xintian& Sheng, Jiliang. External Monitoring and Dynamic Behavior in Mutual Funds. Mathematical Problems in Engineering. 2016. Vol. 2016, no. 2016, pp.1-8.
https://search.emarefa.net/detail/BIM-1112652
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1112652