Broken promises, competition, and capital allocation in the mutual fund industry

IF 10.4 1区 经济学 Q1 BUSINESS, FINANCE
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引用次数: 0

Abstract

What characteristics of mutual funds do investors care about? In addition to performance and fees, we show that investors exhibit a clear preference for managers who adhere to the strategies they describe in their prospectuses. Capital flows respond negatively when funds diverge from the average holdings of their text-based strategy peer groups, but positively when they outperform those peer averages. We identify this effect using a novel instrumental variables approach, and show that funds face a delicate trade-off between keeping their promises and outperforming their peers who make similar promises.
共同基金行业的失信、竞争和资本分配
投资者关心共同基金的哪些特征?除了业绩和费用外,我们还发现投资者明显偏好遵守招募说明书中所述策略的基金经理。当基金的持有量偏离基于文本策略的同类基金的平均持有量时,资本流动会产生负面影响,而当基金的表现优于同类基金的平均持有量时,资本流动则会产生正面影响。我们使用一种新颖的工具变量方法确定了这种效应,并表明基金在遵守承诺和超越做出类似承诺的同行之间面临着微妙的权衡。
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来源期刊
CiteScore
15.80
自引率
4.50%
发文量
192
审稿时长
37 days
期刊介绍: The Journal of Financial Economics provides a specialized forum for the publication of research in the area of financial economics and the theory of the firm, placing primary emphasis on the highest quality analytical, empirical, and clinical contributions in the following major areas: capital markets, financial institutions, corporate finance, corporate governance, and the economics of organizations.
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