Mutual Fund Tournaments in Korea

KWANGSOO KO; Yeonjeong Ha

Journal of Insurance and Finance

2008, 19(3), pp.209-228
Publisher : Korea Insurance Research Institute
Research Area : Business Management

KWANGSOO KO ¹ , Yeonjeong Ha ²

¹ 부산대학교
² 부산대학교

ABSTRACT

This paper investigates the mutual fund tournaments and finds that fund agency problems exist in the Korean fund industry. The results are summarized as follows:First, mutual fund tournaments are found in the sense of Brown, Harlow, and Starks(1996). The tournament phenomena are observed in monthly, weekly, and daily returns, which implies the robustness of the empirical results. Second, mutual fund tournaments are remarkable for start-up funds and ceased funds. Third, we fail to find the fund tournaments for public balanced funds and private equity funds. These findings support that observed mutual fund tournaments for public equity fund is robust.
KEYWORDS

behavior of fund managers , fund agency problems , fund performance , fund risk adjustment , fund tournaments
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KCI Citation (5)

KJC Korea
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