Testing a non-linear effect in the risk shifting-tournament model applied to Australian superannuation funds

Article Type: Abstracts From: International Journal of Accounting and Information Management, Volume 19, Issue 2

We investigate the tournament induced risk-shifting behavior of Australian superannuation funds, allowing for non-linearities. We apply a regression-based methodology and examine tournaments based on the calendar year and the financial year. We characterize a small set of non-linear tournament outcomes and find mixed evidence across these different cases.

Keywords: Tournaments, Mutual funds, Non-linear test

Terry HallahanSchool of Economics, Finance and Marketing,RMIT University, Melbourne, AustraliaRobert W. FaffUQ Business School, University of Queensland, Brisbane, Australia