Mutual funds withdraw shield: performance or agency costs driver?

Authors

  • Carlos Francisco Alves CEF.UP, Faculty of Economics, University of Porto, Portugal
  • Helena Mouta School of Technology and Management of Bragança, Portugal

DOI:

https://doi.org/10.17811/ebl.1.1.2012.30-34

Abstract

In this paper, using a unique database, we compare the performance of a set of equity mutual funds to a set of equity savings funds, which are similar to equity mutual funds in all but one characteristic: the tax regime that strongly penalizes withdrawals from equity savings funds. We found evidence consistent with the hypothesis that mutual funds less subject to liquidity shocks exhibit higher performances.

Author Biographies

Carlos Francisco Alves, CEF.UP, Faculty of Economics, University of Porto, Portugal

Faculty of Economics, University of Porto

Helena Mouta, School of Technology and Management of Bragança, Portugal

School of Technology and Management of Bragança

References

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Published

26-03-2012

How to Cite

Alves, C. F., & Mouta, H. (2012). Mutual funds withdraw shield: performance or agency costs driver?. Economics and Business Letters, 1(1), 30–34. https://doi.org/10.17811/ebl.1.1.2012.30-34

Issue

Vol. 1 No. 1 (2012): March

Section

Articles

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