Investigation of the Effects of Types of Ownershipon Disposition effect of Mutual funds in Tehran Stock Exchange

Document Type : Research Paper

Authors

1 Assistant Prof. in Business Management (Finance), Mazandaran University, Babolsar, Iran

2 MSc. in Business Management (Finance), Mazandaran University, Babolsar, Iran

Abstract

This paper examines the relationship between mutual fund managers' ownership and the disposition effect, by using the 24 accepted mutual funds in the Tehran Stock Exchange for the period of 2011 to 2015, we investigate the effect of mutual funds’s types of ownershipon their disposition effect by applying Generalized Method of Moments (GMM) and Generalized Least Squares (EGLS) methods of estimations. Ownership structure is divided into four categories including: foreign ownership, corporate ownership, institutional ownership and management ownership. Kao cointegration test results confirm Long-run relationship among variables. Results also show Funds with managerial ownership exhibit significantly less disposition effect than those without, and the disposition measure decreases with managers' percentage ownership. We also find that the disposition effect is positively related to the degree of board independence. In addation results don’t confirm the effect of corporate ownership on mutual funds’s disposition effect.

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References

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Financial Research Journal
Volume 18, Issue 4
March 2017
Pages 675-960

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