Winners in the spotlight: Media coverage of fund holdings as a driver of flows

• 成果类型: Article
• 署名作者: Solomon, David H.; Soltes, Eugene; Sosyura, Denis
• 署名单位: University of Southern California; Harvard University; University of Michigan System; University of Michigan
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2014.02.009
• 发表日期: 2014
• 页码: 53-72
• 关键词: media; Mutual funds; capital flows; Fund holdings; Return chasing

摘要

We show that media coverage of mutual fund holdings affects how investors allocate money across funds. Fund holdings with high past returns attract extra flows, but only if these stocks were recently featured in the media. In contrast, holdings that were not covered in major newspapers do not affect flows. We present evidence that media coverage tends to contribute to investors' chasing of past returns rather than facilitate the processing of useful information in fund portfolios. Our evidence suggests that media coverage can exacerbate investor biases and that it is the primary mechanism that makes fund window dressing effective. (C) 2014 Elsevier B.V. All rights reserved.