Fortune Favours the Bold? Exploring Tournament Behavior among Australian Superannuation Funds

In this paper we investigate the tournament induced risk-shifting behavior of Australian “multi-sector growth funds”. We apply a regression-based methodology and examine tournaments based on the calendar year and the financial year. In our core analysis we find evidence in favor of Taylor’s ( J Econ...

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Bibliographic Details
Published in:Journal of financial services research 2008-06, Vol.33 (3), p.205-220
Main Authors: Hallahan, Terry, Faff, Robert W., Benson, Karen L.
Format: Article
Language:English
Subjects:
Calendars
Economic models
Economic statistics
Economic theory
Economics and Finance
Equity funds
Finance
Financial Services
G11
G23
G24
Hypotheses
incentives
Institutional investments
Investment advisors
Investors
Macroeconomics/Monetary Economics//Financial Economics
Mutual funds
Regression analysis
Risk
risk taking
Stock exchanges
Studies
Superannuation
Tournaments
Tournaments & championships
Volatility
Wages & salaries
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Summary:In this paper we investigate the tournament induced risk-shifting behavior of Australian “multi-sector growth funds”. We apply a regression-based methodology and examine tournaments based on the calendar year and the financial year. In our core analysis we find evidence in favor of Taylor’s ( J Econ Behav Organ 1455:1–11, 2003) risk shifting tournament hypothesis for financial year-end tournaments. Apart from the standard tournament hypothesis we also report a range of findings regarding stability; fund age; and fund size. Support for the Taylor hypothesis generally continues across these variations as well.
ISSN:0920-8550
1573-0735
DOI:10.1007/s10693-008-0030-y