Fortune favours the bold? Exploring tournament behavior among Australian superannuation funds

In this paper, the tournament induced risk-shifting behavior of Australian “multi-sector growth funds” is investigated. A regression-based methodology is applied and tournaments based on the calendar year and the financial year are examined. In the core analysis evidence is found in favor of Taylor’s risk shifting tournament hypothesis for financial year-end tournaments. Apart from the standard tournament hypothesis, a range of findings regarding stability, fund age and fund size is reported upon. Support for the Taylor hypothesis generally continues across these variations as well