Study finds mutual fund disclosures are unnecessarily complex
Retail investors often make poor choices when selecting mutual funds. Are complex disclosures to blame?
Faculty
Chloe Xie is the Zenon Zannetos (1955) Career Development Assistant Professor in Accounting and an Assistant Professor of Accounting at the MIT Sloan School of Management.
Her research focuses on capital market imperfections – such as limits to arbitrage, deviations from von Neumann-Morgenstern preferences, criminal behavior, etc. – and how these frictions shape the information environment. Her research also considers how these frictions affect disclosure decisions, asset pricing, investor decision-making, and non-financial market outcomes.
She previously worked as a consultant advising financial institutions on valuation, mergers/acquisitions, and corporate strategy.
Chloe Xie holds a PhD in business administration from Stanford University's Graduate School of Business.
deHaan, Ed, Yang Song, Chloe Xie, and Christina Zhu. Journal of Accounting and Economics Vol. 72, No. 2-3 (2021): 101429.
Xie, Chloe, MIT Sloan Working Paper 6499-21. Cambridge, MA: MIT Sloan School of Management, 2021.
Xie, Chloe, Joseph Piotroski, Charles Lee, and Eric So, MIT Sloan Working Paper 6500-21. Cambridge, MA: MIT Sloan School of Management, 2021.
Xie, Chloe, and Jonathan Wallen, MIT Sloan Working Paper 6125-20. Cambridge, MA: MIT Sloan School of Management, 2020.
Xie, Chloe and Joseph Piotroski, MIT Sloan Working Paper 6122-20. Cambridge, MA: MIT Sloan School of Management, 2020.
Xie, Chloe, Steven Mitsuda, and Maureen McNichols, MIT Sloan Working Paper 6123-20. Cambridge, MA: MIT Sloan School of Management, 2020.
Retail investors often make poor choices when selecting mutual funds. Are complex disclosures to blame?
Change is afoot in accounting. MIT Sloan experts urge leaders to track ESG, artificial intelligence, blockchain, intangible capital, and “regtech.”
It turns out that funds tend to obfuscate high fees with unnecessary complexity in their disclosures, according to a new paper.