TITLE:
Systemic Risk, Idiosyncratic Risk and Mutual Fund Flows
AUTHORS:
Zhiping Jiang, Yixiang Tian, Huangang Zheng
KEYWORDS:
Systemic Risk, Idiosyncratic Risk, Risk-Taking, Fund Managers Reward
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.3 No.3,
March
18,
2015
ABSTRACT: Is risk-taking behavior of Fund managers to consider for their own benefit maximization? Based the
unbalanced panel data of 2004-2012 in China fund market, we empirically examine
the relation between fund risk and fund managers reward. The results show that
the fund choosing higher risk will not bring decreasing investment cash flow, and
the investors generally show a “reward” attitude to high-risk funds.
Furthermore, we find fund managers reward is a result of taking greater
systemic risk.