Performance and market share: Evidence from the German mutual fund industry

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CFS Working Paper ; No. 1997/01

Classification and Topics

• Classification: Wirtschaft ; Portfolio Choice; Investment Decisions ; Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors
• Subject: mutual fund performance ; fund growth ; investment decisions

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Krahnen, Jan Pieter ; Schmid, Frank A. ; Theissen, Erik
• Event: Veröffentlichung
• (who): Goethe University Frankfurt, Center for Financial Studies (CFS)
• (where): Frankfurt a. M.
• (when): 1997

Further information

• Handle: http://hdl.handle.net/10419/78054
• URN: urn:nbn:de:hebis:30-9261
• Last update: 10.03.2025, 11:44 AM CET