Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/78054
Authors: 
Krahnen, Jan Pieter
Schmid, Frank A.
Theissen, Erik
Year of Publication: 
1997
Series/Report no.: 
CFS Working Paper 1997/01
Abstract: 
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.
Subjects: 
mutual fund performance
fund growth
investment decisions
JEL: 
G11
G23
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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