Spillover Effects in Mutual Fund Companies

Clemens Sialm and T. Mandy Tham ()
Additional contact information
T. Mandy Tham: Nanyang Business School, Nanyang Technological University, Singapore 639798

Management Science, 2016, vol. 62, issue 5, 1472-1486

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. This paper was accepted by Wei Jiang, finance .

Keywords: mutual fund flows; financial conglomerates; umbrella branding; performance predictability (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.2015.2200 (application/pdf)

Related works:
Working Paper: Spillover Effects in Mutual Fund Companies (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:62:y:2016:i:5:p:1472-1486

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().