Performance and market share : evidence from the German mutual fund industry

In this paper we analyze the relation between fund performance and market share. Using three performance measures we first establish that significant differences in the risk-adjusted returns of the funds in the sample ex
In this paper we analyze the relation between fund performance and market share. Using three performance measures we first establish that significant differences in the risk-adjusted returns of the funds in the sample exist. Thus, investors may react to past fund performance when making their investment decisions. We estimated a model relating past performance to changes in market share and found that past performance has a significant positive effect on market share. The results of a specification test indicate that investors react to risk-adjusted returns rather than to raw returns. This suggests that investors may be more sophisticated than is often assumed. First version - May 1997
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Metadaten
Author:Jan Pieter Krahnen, Frank A. Schmid, Erik Theissen
URN:urn:nbn:de:hebis:30-9261
Series (Serial Number):CFS working paper series (1997, 01)
Document Type:Working Paper
Language:English
Date of Publication (online):2005/05/25
Year of first Publication:1997
Publishing Institution:Univ.-Bibliothek Frankfurt am Main
Release Date:2005/05/25
Tag:fund growth ; investment decisions; mutual fund performance
HeBIS PPN:190605693
Institutes:Center for Financial Studies (CFS)
Dewey Decimal Classification:330 Wirtschaft
JEL-Classification:G11 Portfolio Choice; Investment Decisions
G23 Pension Funds; Other Private Financial Institutions
Sammlungen:Universitätspublikationen
Licence (German):License Logo Veröffentlichungsvertrag für Publikationen

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