| Author: | Choi, Hyung Kyu |
| Title: | Hedge fund awards : the impact on investors and managers |
| Advisors: | Kang, Byoung Uk (AF) |
| Degree: | D.B.A. |
| Year: | 2019 |
| Subject: | Hong Kong Polytechnic University -- Dissertations Hedge funds -- Awards Hedge funds Investment analysis |
| Department: | Faculty of Business |
| Pages: | 151 pages : color illustrations |
| Language: | English |
| Abstract: | We conduct an event-study analysis of hedge fund awards as a potentially attention-grabbing events and investigate the impact on post-event fund flows and pre-event risk-taking. We consider the award events to be an increased attention shock and examine how the increased attention shock affects investors. Using Google search volume and SEC's EDGAR file download activity as revealed attention measures, we first confirm that investor attention indeed increases following awards announcements. More importantly, we then show that award winners experience a significant increase in fund flows despite no subsequent superior alpha. Meanwhile, fund managers with a feasible chance of winning the award increase relative risk in the later part of the award evaluation period, consistent with the prediction that significantly outperforming managers are more likely to increase relative risk. These results expand our understanding of (1) the limited attention to stale information of presumably sophisticated and primarily institutionalized hedge fund investors and (2) the managerial incentives that arise in response. |
| Rights: | All rights reserved |
| Access: | restricted access |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| 991022289506603411.pdf | For All Users (off-campus access for PolyU Staff & Students only) | 1.69 MB | Adobe PDF | View/Open |
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