Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/112725
Authors: 
Cici, Gjergji
Jaspersen, Stefan
Kempf, Alexander
Year of Publication: 
2015
Series/Report no.: 
CFR Working Paper 15-02 [rev.]
Abstract: 
We document that the speed of information dissemination within mutual fund families positively affects the performance of member funds. This suggests that the resulting benefits of higher information precision far outweigh free-riding costs associated with fast internal dissemination. The performance effect intensifies when information travels across managers from different rather than same styles. This is consistent with fast information diffusion aggregating complementary insights that sharpen information precision, but also with fewer free-riding opportunities among managers from different styles. Managers exploit the resulting higher information precision rationally by trading more, relying less on public information, and investing differently from unaffiliated peers.
Subjects: 
Information diffusion
mutual fund performance
fund families
investment behavior
organizational structures
JEL: 
D23
D83
G23
L22
Document Type: 
Working Paper

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