À繫¿¬±¸ Á¦ ±Ç È£ (2014³â 11¿ù)
Asian Review of Financial Research, Vol., No..
pp.226~249
pp.226~249
Does incubation matter when copying equity funds in China?
Yaping Wang College of Business Pusan National University
Miyoun Paek College of Business Pusan National University
Kwangsoo Ko College of Business Pusan National University
This study investigates the impact of incubation on the effectiveness of copycat funds in the largest emerging market, China. The empirical findings are as follows. First, unlike the U.S., the overall findings exclude the possibility of successfully copying equity funds in China. Second, an advisory company¡¯s fund incubation makes it harder to free-ride on new funds than old funds. Third, incubation is generally undertaken for new funds in a bullish market so that copycat returns of new-minus-old funds have a negative correlation with market returns. Fourth, the effect of long Chinese Lunar Year holiday impairs the performance of primitive funds, consequently, copying is effective in January and February. Finally, logit analysis shows that copying is successful for those funds with low performance and low turnover ratios.
Yaping Wang
Miyoun Paek
Kwangsoo Ko
This study investigates the impact of incubation on the effectiveness of copycat funds in the largest emerging market, China. The empirical findings are as follows. First, unlike the U.S., the overall findings exclude the possibility of successfully copying equity funds in China. Second, an advisory company¡¯s fund incubation makes it harder to free-ride on new funds than old funds. Third, incubation is generally undertaken for new funds in a bullish market so that copycat returns of new-minus-old funds have a negative correlation with market returns. Fourth, the effect of long Chinese Lunar Year holiday impairs the performance of primitive funds, consequently, copying is effective in January and February. Finally, logit analysis shows that copying is successful for those funds with low performance and low turnover ratios.