TY - JOUR
T1 - Nonfinancial traits and financial smartness
T2 - International evidence from Shariah-compliant and Socially responsible funds
AU - Azmi, Wajahat
AU - Mohamad, Shamsher
AU - Shah, Mohamed Eskandar
N1 - Publisher Copyright:
© 2018 Elsevier B.V.
PY - 2018/9
Y1 - 2018/9
N2 - This paper examines the flow-performance relationship and the presence of “Smart money effect” in Socially responsible funds (SRFs) and Shariah compliant funds (SCFs). A survivorship bias free sample of 686 funds comprising of 212 SCFs and 474 SRFs were analysed with investment focus in the Asia pacific, Emerging markets, Europe, Global (with no focus to any specific country or region), Middle East and North Africa (MENA) and North America. The findings show that flow-performance relationship is asymmetric for both the funds as the response to positive returns is more as compare to the negative returns for the last/current year as well as the last/current month. There is also a significant presence of “Smart money effect” in both the funds for the entire sample but there is no evidence of “Smart money effect” in SRFs for the sample of old funds.
AB - This paper examines the flow-performance relationship and the presence of “Smart money effect” in Socially responsible funds (SRFs) and Shariah compliant funds (SCFs). A survivorship bias free sample of 686 funds comprising of 212 SCFs and 474 SRFs were analysed with investment focus in the Asia pacific, Emerging markets, Europe, Global (with no focus to any specific country or region), Middle East and North Africa (MENA) and North America. The findings show that flow-performance relationship is asymmetric for both the funds as the response to positive returns is more as compare to the negative returns for the last/current year as well as the last/current month. There is also a significant presence of “Smart money effect” in both the funds for the entire sample but there is no evidence of “Smart money effect” in SRFs for the sample of old funds.
KW - Flow performance relationship
KW - Shariah compliant funds
KW - Smart money effect
KW - Socially responsible funds
UR - http://www.scopus.com/inward/record.url?scp=85043291691&partnerID=8YFLogxK
U2 - 10.1016/j.intfin.2018.02.001
DO - 10.1016/j.intfin.2018.02.001
M3 - Article
AN - SCOPUS:85043291691
SN - 1042-4431
VL - 56
SP - 201
EP - 217
JO - Journal of International Financial Markets, Institutions and Money
JF - Journal of International Financial Markets, Institutions and Money
ER -