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Regulatory Induced Performance Persistence: Evidence from Hedge Funds

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Regulatory Induced Performance Persistence: Evidence from Hedge Funds. / Cumming, Douglas; Dai, Na; Hass, Lars Helge et al.
In: Journal of Corporate Finance, Vol. 18, No. 5, 12.2012, p. 1005-1022.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Cumming, D, Dai, N, Hass, LH & Schweizer, D 2012, 'Regulatory Induced Performance Persistence: Evidence from Hedge Funds', Journal of Corporate Finance, vol. 18, no. 5, pp. 1005-1022. https://doi.org/10.1016/j.jcorpfin.2012.06.009

APA

Cumming, D., Dai, N., Hass, L. H., & Schweizer, D. (2012). Regulatory Induced Performance Persistence: Evidence from Hedge Funds. Journal of Corporate Finance, 18(5), 1005-1022. https://doi.org/10.1016/j.jcorpfin.2012.06.009

Vancouver

Cumming D, Dai N, Hass LH, Schweizer D. Regulatory Induced Performance Persistence: Evidence from Hedge Funds. Journal of Corporate Finance. 2012 Dec;18(5):1005-1022. Epub 2012 Jul 3. doi: 10.1016/j.jcorpfin.2012.06.009

Author

Cumming, Douglas ; Dai, Na ; Hass, Lars Helge et al. / Regulatory Induced Performance Persistence: Evidence from Hedge Funds. In: Journal of Corporate Finance. 2012 ; Vol. 18, No. 5. pp. 1005-1022.

Bibtex

@article{119da4d1810d4d68818f424f631c08d0,
title = "Regulatory Induced Performance Persistence: Evidence from Hedge Funds",
abstract = "This paper tests the idea that financial regulation can impact performance persistence in the context of the hedge fund industry in 48 countries over the years 1994–2008. The data show evidence of three types of regulation influencing performance persistence: (1) minimum capital restrictions, which restrict lower quality funds and hence increase the likelihood of performance persistence, (2) restrictions on location of key service providers, which restrict human capital choices and hence tend to mitigate performance persistence, and (3) distribution channels, which make fund performance more opaque, decrease the likelihood of performance persistence. We do not find evidence that distribution channels, that promote fund presence to institutional investors, enhance performance persistence. Finally, we show differences in the effect of regulation on persistence by fund quartile ranking.",
keywords = "Performance persistence, Law and finance , Hedge funds",
author = "Douglas Cumming and Na Dai and Hass, {Lars Helge} and Denis Schweizer",
year = "2012",
month = dec,
doi = "10.1016/j.jcorpfin.2012.06.009",
language = "English",
volume = "18",
pages = "1005--1022",
journal = "Journal of Corporate Finance",
issn = "0929-1199",
publisher = "Elsevier",
number = "5",

}

RIS

TY - JOUR

T1 - Regulatory Induced Performance Persistence: Evidence from Hedge Funds

AU - Cumming, Douglas

AU - Dai, Na

AU - Hass, Lars Helge

AU - Schweizer, Denis

PY - 2012/12

Y1 - 2012/12

N2 - This paper tests the idea that financial regulation can impact performance persistence in the context of the hedge fund industry in 48 countries over the years 1994–2008. The data show evidence of three types of regulation influencing performance persistence: (1) minimum capital restrictions, which restrict lower quality funds and hence increase the likelihood of performance persistence, (2) restrictions on location of key service providers, which restrict human capital choices and hence tend to mitigate performance persistence, and (3) distribution channels, which make fund performance more opaque, decrease the likelihood of performance persistence. We do not find evidence that distribution channels, that promote fund presence to institutional investors, enhance performance persistence. Finally, we show differences in the effect of regulation on persistence by fund quartile ranking.

AB - This paper tests the idea that financial regulation can impact performance persistence in the context of the hedge fund industry in 48 countries over the years 1994–2008. The data show evidence of three types of regulation influencing performance persistence: (1) minimum capital restrictions, which restrict lower quality funds and hence increase the likelihood of performance persistence, (2) restrictions on location of key service providers, which restrict human capital choices and hence tend to mitigate performance persistence, and (3) distribution channels, which make fund performance more opaque, decrease the likelihood of performance persistence. We do not find evidence that distribution channels, that promote fund presence to institutional investors, enhance performance persistence. Finally, we show differences in the effect of regulation on persistence by fund quartile ranking.

KW - Performance persistence

KW - Law and finance

KW - Hedge funds

U2 - 10.1016/j.jcorpfin.2012.06.009

DO - 10.1016/j.jcorpfin.2012.06.009

M3 - Journal article

VL - 18

SP - 1005

EP - 1022

JO - Journal of Corporate Finance

JF - Journal of Corporate Finance

SN - 0929-1199

IS - 5

ER -