Costs and benefits of financial conglomerate affiliation: Evidence from hedge funds

• 成果类型: Article
• 署名作者: Franzoni, Francesco; Giannetti, Mariassunta
• 署名单位: Universita della Svizzera Italiana; Swiss Finance Institute (SFI); Centre for Economic Policy Research - UK; Stockholm School of Economics; European Corporate Governance Institute
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2019.04.008
• 发表日期: 2019
• 页码: 355-380
• 关键词: HEDGE FUNDS; financial conglomerates; risk taking

摘要

This paper explores how affiliation to financial conglomerates affects asset managers' access to capital, risk taking, and performance. Focusing on a sample of hedge funds, we find that financial conglomerate-affiliated hedge funds (FCAHFs) have lower flow-performance sensitivity than other hedge funds and that this difference is particularly pronounced during financial turmoil. Arguably, thanks to more stable funding, FCAHFs allow their investors to redeem capital more freely and are able to capture price rebounds. Because investors could value these characteristics, our findings provide a rationale for why financial conglomerate affiliation is widespread, although it slightly hampers performance on average. (C) 2019 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license. (http://creativecommons.org/licensesiby-nc-nc1/4.0/)