The absence of investor reaction to the poor performance of mutual funds is a widely reported phenomenon. This paper investigates the role of load costs as an explanation for the phenomenon and concludes that back-end load fees are an obstacle to reaction. We find that investors with a high...

Institutional investors are often seen as potential solutions for corporate governance problems and are requested to have a more active role in the monitoring and control of listed companies. In this paper we develop a model that, within a universal banking framework, allows one to conclude...

Institutional investors manage an increasingly substantial share of securities in the developed markets. Previous research has concluded that mutual funds clients do have asymmetric reactions, for they increase capital flows to mutual funds that are winners in performance, but fail to go away...