The absence of investor reaction to the poor performance of mutual funds is a widely reported phenomenon. This paper investigates the role of load costs as an explanation for the phenomenon and concludes that back-end load fees are an obstacle to reaction. We find that investors with a high...

Institutional investors are often seen as potential solutions for corporate governance problems and are requested to have a more active role in the monitoring and control of listed companies. In this paper we develop a model that, within a universal banking framework, allows one to conclude...

Previous research has concluded that mutual funds' clients do have asymmetric performance reactions. Such behavior gives the fund manager the opportunity to optimize the fund's own interests. Using a unique database from a financial system wherein commercial interests, investment banking and...

The absence of investor reaction to the poor performance of mutual funds is a widely reported phenomenon. This paper investigates the role of load costs as an explanation for the phenomenon and concludes that back-end load fees are an obstacle to reaction. We found evidence consistent with the...

This paper investigates the optimum position to be adopted by a financial group relative to the agency costs of a given firm in which the funds that it trustee manages possess shareholder positions. The fundamental determining factors regarding the results that were obtained were as follows: the...

Institutional investors manage an increasingly substantial share of securities in the developed markets. Previous research has concluded that mutual funds clients do have asymmetric reactions, for they increase capital flows to mutual funds that are winners in performance, but fail to go away...

We analyze the equity portfolio composition of investment funds of 15 European countries. We find that these institutions tend to prefer larger, more liquid, high dividend, low volatility stocks that belong to the main stock market indices. These results are consistent with previous studies that...

With the Directive 2004/109/EC, of December 15, 2004 – Transparency Directive –, the European Union decided not to require listed companies to disclose financial information in the first and third quarters of each year. Each EU country now has to decide whether to oblige its companies to...

In this paper, by using a database of Portuguese and Brazilian firms, where the Latin Corporate Governance Model is traditionally predominant but increasingly out of fashion, we investigate whether the Latin Corporate Governance Model performs worse or better than others (variants of the...