Star funds, spillover effect and fund advertisements: from the viewpoint of individual funds and fund families

Ying Fen Fu, Hsin-Hong Kang, Hai Ching Liu

Research output: Contribution to journalArticle

Abstract

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).

Original languageEnglish
Pages (from-to)133-174
Number of pages42
JournalNTU Management Review
Volume24
DOIs
Publication statusPublished - 2014 Sep 1

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Spillover effects
Resources
Empirical results
Logistic regression
Panel data

All Science Journal Classification (ASJC) codes

  • Business, Management and Accounting(all)

Cite this

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Star funds, spillover effect and fund advertisements : from the viewpoint of individual funds and fund families. / Fu, Ying Fen; Kang, Hsin-Hong; Liu, Hai Ching.

In: NTU Management Review, Vol. 24, 01.09.2014, p. 133-174.

Research output: Contribution to journalArticle

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