Stock repurchasing bias of mutual funds

Du, Mengqiao ; Niessen-Ruenzi, Alexandra ; Odean, Terrance

Document Type: Article
Year of publication Online: 2023
Date: 2023
The title of a journal, publication series: Review of Finance
Volume: tba
Issue number: tba
Page range: 1-29
Place of publication: Oxford
Publishing house: Oxford Univ. Press
ISSN: 1572-3097 , 1573-692X
Publication language: English
Institution: Business School > ABWL u. Corporate Governance (Niessen-Ruenzi 2012-)
Subject: 330 Economics
Abstract: The paper shows that mutual funds’ trading experiences bias their future repurchasing decisions. Mutual funds are less likely to repurchase a stock if they previously sold the stock for a loss rather than for a gain. After switching to managing a different fund, fund managers still avoid repurchasing stocks they sold for a loss at a past fund. We do not find that mutual fund managers are biased against repurchasing past loser stocks because of superior information. Though less likely to be repurchased, repurchased losers do not underperform repurchased winners – and the fund itself – in the subsequent quarter.

Dieser Eintrag ist Teil der Universitätsbibliographie.

Diese Publikation ist bisher nur Online erschienen. Diese Publikation nun als "Jetzt in Print erschienen" melden.

Metadata export


+ Search Authors in

+ Page Views

Hits per month over past year

Detailed information

You have found an error? Please let us know about your desired correction here: E-Mail

Actions (login required)

Show item Show item