TY - JOUR
T1 - Star funds, spillover effect and fund advertisements
T2 - from the viewpoint of individual funds and fund families
AU - Fu, Ying Fen
AU - Kang, Hsin Hong
AU - Liu, Hai Ching
N1 - Publisher Copyright:
©, 2014, College of Management Press. All right reserved.
PY - 2014/9/1
Y1 - 2014/9/1
N2 - This study adopts the Panel Data Approach and Logistic Regression to examine the effect of fund advertisements from the viewpoint of both individual funds and fund families. Our empirical results show that adopting family advertisements is a good decision both for individual funds and their families. However, there exists a conflict between individual funds when the individual fund advertisement is executed. The individual funds do not respond well to individual fund advertisements of other funds within the same family because it consumes the resources of the family and does not have a spillover effect. One exception is star funds. The individual fund advertisement of star funds not only results in more flows but also has a spillover effect, which thus brings the star funds a higher probability of being individually advertised. As long as the funds are performance (flow) star and winner funds within the whole stock funds or only the performance (flow) star and winner funds within the family, their advertisement probability is raised. This is consistent with the argument that if the funds confirm the benefit of the family, the family may decide to distribute more limited resources to these funds (Chevalier and Ellison, 1997).
AB - This study adopts the Panel Data Approach and Logistic Regression to examine the effect of fund advertisements from the viewpoint of both individual funds and fund families. Our empirical results show that adopting family advertisements is a good decision both for individual funds and their families. However, there exists a conflict between individual funds when the individual fund advertisement is executed. The individual funds do not respond well to individual fund advertisements of other funds within the same family because it consumes the resources of the family and does not have a spillover effect. One exception is star funds. The individual fund advertisement of star funds not only results in more flows but also has a spillover effect, which thus brings the star funds a higher probability of being individually advertised. As long as the funds are performance (flow) star and winner funds within the whole stock funds or only the performance (flow) star and winner funds within the family, their advertisement probability is raised. This is consistent with the argument that if the funds confirm the benefit of the family, the family may decide to distribute more limited resources to these funds (Chevalier and Ellison, 1997).
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U2 - 10.6226/NTURM2014.OCT.R11021
DO - 10.6226/NTURM2014.OCT.R11021
M3 - Article
AN - SCOPUS:84923787949
SN - 1018-1601
VL - 24
SP - 133
EP - 174
JO - NTU Management Review
JF - NTU Management Review
ER -