Family values and the star phenomenon: Strategies of mutual fund families

• 成果类型: Article
• 署名作者: Nanda, V; Wang, ZJ; Zheng, L
• 署名单位: University of Michigan System; University of Michigan
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhg054
• 发表日期: 2004
• 页码: 667
• 关键词: performance; industry; RISK; incentives; returns; FLOWS

摘要

We examine the extent to which a fund's cash flows are affected by the stellar performance of other funds in its family-and consequences of such spillovers. We show that star performance results in greater cash inflow to the fund and to other funds in its family. Moreover, families with higher variation in investment strategies across funds are shown to be more likely to generate star performance. We argue that spillovers may induce lower ability families to pursue star-creating strategies. Consistent with our conjecture, families with high variation in investment strategies across funds significantly underperform low-variation families.