Open AccessMutual funds withdraw shield: performance or agency costs driver?
Author(s) -
Carlos F. Alves,
Helena Mouta
Publication year - 2012
Publication title -
economics and business letters
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.197
H-Index - 4
ISSN - 2254-4380
DOI - 10.17811/ebl.1.1.2012.30-34
Subject(s) - equity (law) , market liquidity , business , mutual fund , monetary economics , finance , economics , political science , law
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.
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