Spillover Effects in Mutual Fund Companies
University of Texas at Austin - McCombs School of Business; National Bureau of Economic Research (NBER)
T. Mandy Tham
Nanyang Technological University (NTU)
February 20, 2014
McCombs Research Paper Series No. FIN-03-11
Our paper investigates spillover effects across different business segments of publicly traded mutual fund management companies. We find that the prior stock price performance of the management company has a significant impact on the money flows of the affiliated mutual funds. Investment flows into mutual funds increase significantly with the prior performance of the management company even if the company performance does not lead to superior future fund performance. These results indicate that the financial health of a diversified firm has a significant impact on the prospects of the various business segments.
Number of Pages in PDF File: 35
Keywords: Mutual Fund Flows, Conglomerates, Financial Distress
JEL Classification: G10, G14, G21, G23, G33working papers series
Date posted: January 18, 2011 ; Last revised: February 21, 2014
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