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 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.
Author: | Jan Pieter KrahnenORCiDGND, Frank A. Schmid, Erik TheissenORCiDGND |
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URN: | urn:nbn:de:hebis:30-9261 |
Parent Title (German): | Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 1997,01 |
Series (Serial Number): | CFS working paper series (1997, 01) |
Document Type: | Working Paper |
Language: | English |
Year of Completion: | 1997 |
Year of first Publication: | 1997 |
Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
Release Date: | 2005/05/25 |
Tag: | fund growth; investment decisions; mutual fund performance |
GND Keyword: | Deutschland; Investmentfonds; Wachstum; Marktanteil |
Issue: | September 1997 |
Note: | First version - May 1997 |
HeBIS-PPN: | 190605693 |
Institutes: | Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) |
Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
Licence (German): | Deutsches Urheberrecht |