Publication Type
Journal Article
Version
acceptedVersion
Publication Date
5-2016
Abstract
Our paper investigates spillover effects across different business segments of publicly traded financial conglomerates. We find that the investment decisions of mutual fund shareholders do not depend only on the prior performance of the mutual funds; they also depend on the prior performance of the funds’ management companies. Flows into equity and bond mutual funds increase with the prior stock price performance of the funds’ management companies after controlling for fund performance and other fund characteristics. The sensitivity of flows to the management company’s performance is not justified by the subsequent performance of the affiliated funds. The results indicate that the reputation of a company’s brand has a significant impact on the behavior of its customers.
Keywords
Mutual fund flows, financial conglomerates, umbrella branding, performance predictability
Discipline
Corporate Finance | Finance and Financial Management
Research Areas
Finance
Publication
Management Science
Volume
62
Issue
5
First Page
1472
Last Page
1486
ISSN
0025-1909
Identifier
10.1287/mnsc.2015.2200
Publisher
INFORMS (Institute for Operations Research and Management Sciences)
Citation
SIALM, Clemens and THAM, T. Mandy.
Spillover effects in mutual fund companies. (2016). Management Science. 62, (5), 1472-1486.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/5980
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1287/mnsc.2015.2200