Does Advertising of Mutual Funds Drive Smart Money Effect?Evidence from Open-end Mutual Fund Market in Taiwan
| Autor: | Yi-yin Lai, 賴怡穎 |
|---|---|
| Rok vydání: | 2009 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 97 Prior research finds that mutual fund investors have adequate ability to select funds which superior performance remains persistent. Following the work of Keswani and Stolin (2008), we use a fund netflow as a proxy for investors’ preference to examine whether the smart money effect exists. Furthermore, this paper differs from prior research by combining the smart money phenomenon and fund firm’s marketing activities (the advertising expenditure of mutual funds). This paper generates four empirical findings. (1) Mutual funds with positive netflow subsequently have positive Carhart four-factor alpha, that is, the “smart money effect” exists in Taiwanese mutual fund market. (2) The smart money effect is caused by investors’ buying decisions. (3) The smart money effect is only a short-lived phenomenon. (4) Our evidence shows that advertising of funds can explain the smart money effect in Taiwanese open-end mutual fund market. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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