The information content of Australian fund ratings

Access & Terms of Use
metadata only access
Altmetric
Abstract
We examine the information content of managed fund ratings for Australian retail investors. Because fund ratings, premised on a quantitative-qualitative model, are highly transitory, we question whether investors formulate their investment decisions with respect to changes in ratings and whether ratings, in turn, react to fund flows. We find that information regarding fund flows can be obtained from ratings, and that rating changes can have farreaching effects. Investors flock to newly upgraded funds while they penalize those that have been downgraded by withdrawing funds. Investors are constantly anticipating ratings revisions, particularly downgrades, and we attribute this phenomenon to the role of qualitative factors in the ratings.
Persistent link to this record
DOI
Link to Open Access Version
Additional Link
Author(s)
Faff, Robert
;
Parwada, Jerry
;
Poh, Hun-Lune
Supervisor(s)
Creator(s)
Editor(s)
Translator(s)
Curator(s)
Designer(s)
Arranger(s)
Composer(s)
Recordist(s)
Conference Proceedings Editor(s)
Other Contributor(s)
Corporate/Industry Contributor(s)
Publication Year
2007
Resource Type
Journal Article
Degree Type
UNSW Faculty