The Advertising Spillover Effect: Implications for Mutual Fund Families
30 Pages Posted: 7 Mar 2011 Last revised: 18 Nov 2014
Date Written: January 10, 2011
Prior studies have found that a firm’s advertising for one of its products can spill over and enhance sales for other existing products with the same brand name. This study examines whether the advertising spillover effect exists in the mutual fund market. The evidence shows that advertised funds in a fund family can significantly increase the cash flows of other higher-performing funds in the same family but not for those funds with middle and lower performance. For the fund family’s advertising, results indicate that fund family’s advertising can significantly increase the family cash flows for large fund families but not for those small fund families.
Keywords: The Advertising Spillover Effect, Advertising, Mutual Fund Families, Performance
JEL Classification: G20
Suggested Citation: Suggested Citation