Economic Policy Uncertainty and Fund Flow Performance Sensitivity: Evidence from New Zealand

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aut.relation.endpage679
aut.relation.issue3
aut.relation.journalInternational Review of Finance
aut.relation.startpage666
aut.relation.volume23
dc.contributor.authorAli, Sara
dc.contributor.authorBadshah, Ihsan
dc.contributor.authorDemirer, Riza
dc.contributor.authorHegde, Prasad
dc.date.accessioned2023-11-23T03:18:26Z
dc.date.available2023-11-23T03:18:26Z
dc.date.issued2023-01-29
dc.description.abstractUtilizing a large sample of actively managed equity funds and a recently developed EPU index for New Zealand, we show that fund flow performance sensitivity decreases with policy uncertainty. The role of policy uncertainty as a determinant of fund flow performance sensitivity is found to be stronger, particularly for funds with global focus, large sized funds, high momentum funds and those with high idiosyncratic volatility and low downside risk. The findings support the argument that high policy uncertainty dampens investors' ability to process information that allows them to distinguish fund manager skill from luck. The results remain strong after accounting for various macroeconomic factors.
dc.identifier.citationInternational Review of Finance, ISSN: 1369-412X (Print); 1468-2443 (Online), Wiley, 23(3), 666-679. doi: 10.1111/irfi.12407
dc.identifier.doi10.1111/irfi.12407
dc.identifier.issn1369-412X
dc.identifier.issn1468-2443
dc.identifier.urihttp://hdl.handle.net/10292/16981
dc.languageen
dc.publisherWiley
dc.relation.urihttps://onlinelibrary.wiley.com/doi/10.1111/irfi.12407
dc.rights© 2023 The Authors. International Review of Finance published by John Wiley & Sons Australia, Ltd on behalf of International Review of Finance Ltd. This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License, which permits use and distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made.
dc.rights.accessrightsOpenAccess
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/4.0/
dc.subject38 Economics
dc.subject3502 Banking, Finance and Investment
dc.subject3801 Applied Economics
dc.subject35 Commerce, Management, Tourism and Services
dc.subject1501 Accounting, Auditing and Accountability
dc.subject1502 Banking, Finance and Investment
dc.subject3501 Accounting, auditing and accountability
dc.subject3502 Banking, finance and investment
dc.subject3801 Applied economics
dc.titleEconomic Policy Uncertainty and Fund Flow Performance Sensitivity: Evidence from New Zealand
dc.typeJournal Article
pubs.elements-id491170
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