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- Title
REDEMPTION CONSTRAINTS OF BRAZILIAN EQUITY FUNDS, LIQUIDITY OF ASSETS, AND PERFORMANCE.
- Authors
BORGES JUNIOR, DERMEVAL MARTINS; MALAQUIAS, RODRIGO FERNANDES
- Abstract
This paper analyzed the relation between redemption constraints and liquidity of assets under management of Brazilian equity funds, as well as its effect on performance. The sample included 2,706 Brazilian equity funds with investments in stocks listed on BM&FBovespa, or in shares of other equity funds, between 2009 and 2016. The analysis was carried out through descriptive statistics and linear regressions with panel data. The results indicated that redemption constraints positively impact equity funds performance. In addition, the results suggested that liquidity constraints allow the funds to exploit less liquid investments in stocks and shares of other funds. When verifying whether investments in low liquidity assets by equity funds imply superior performance from liquidity premia, the results did not indicate a positive effect.
- Subjects
STOCK funds; LIQUIDITY (Economics); REDEMPTION of securities; INVESTMENTS; DESCRIPTIVE statistics
- Publication
RAE: Revista de Administração de Empresas, 2019, Vol 59, Issue 1, p43
- ISSN
0034-7590
- Publication type
Article
- DOI
10.1590/S0034-759020190105