Corporate managers, price noise and the investment factor

HIGHLIGHTS

  • who: Thorsten Lehnert from the Department of Finance, University of have published the article: Corporate managers, price noise and the investment factor, in the Journal: (JOURNAL)
  • what: This study investigates the impact of flows between bond and equity funds on investment factors over the period 1984-2015.

SUMMARY

    Similarly, prior research indicated a negative relationship between aggregate mutual fund flows, flows from the bond to equity mutual funds, and future market returns. Overall, I find contemporaneous mispricing effects and a statistical reversal relationship between net exchanges, flows from bonds to equity . . .

     

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