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.
- tournament behavior
- superannuation funds
- mutual funds
- risk taking
Hallahan, T., Faff, R., & Benson, K. (2008). Fortune favours the bold? exploring tournament behavior among Australian superannuation funds. Journal of Financial Services Research, 33(3), 205-220. https://doi.org/10.1007/s10693-008-0030-y