search query: @indexterm INDUSTRIAL STRUCTURE / total: 282
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| Author: | Massa, M. |
| Title: | How do Family Strategies Affect Fund Performance? When Performance-Maximization Is Not the Only Game in Town |
| Journal: | Journal of Financial Economics
2003 : FEB, VOL. 67:2, p. 249-304 |
| Index terms: | UNIT TRUSTS INDUSTRIAL STRUCTURE MARKET STRUCTURE BEHAVIOURAL SCIENCE |
| Language: | eng |
| Abstract: | This is a first attempt to study how the structure of the industry affects mutual fund behavior. The author shows that industry structure matters; the mutual fund families employ strategies that rely on the heterogeneity of the investors in terms of investment horizon by offering the possibility to switch across different funds belonging to the same family at no cost. The author argues that this option acts as an externality for all the funds belonging to the same family, affecting the target level of performance the family wants to reach and the number of funds it wants to set up. By using the universe of the U.S. mutual fund industry, the author empirically confirms this intuition. The author finds evidence of family driven heterogeneity among funds and show that families actively exploit it. |
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