Consumer reaction on tumbling funds: Evidence from retail fund outflows during the financial crisis 2007/2008

Publikation: Arbeits- oder Diskussionspapiere und BerichteArbeits- oder Diskussionspapiere

Standard

Consumer reaction on tumbling funds : Evidence from retail fund outflows during the financial crisis 2007/2008. / Schmidt, Daniel; Schmielewski, Frank.

Lüneburg : Institut für Volkswirtschaftslehre der Universität Lüneburg, 2012. S. 1-28 (Working Paper Series in Economics; Nr. 228).

Publikation: Arbeits- oder Diskussionspapiere und BerichteArbeits- oder Diskussionspapiere

Harvard

Schmidt, D & Schmielewski, F 2012 'Consumer reaction on tumbling funds: Evidence from retail fund outflows during the financial crisis 2007/2008' Working Paper Series in Economics, Nr. 228, Institut für Volkswirtschaftslehre der Universität Lüneburg, Lüneburg, S. 1-28.

APA

Schmidt, D., & Schmielewski, F. (2012). Consumer reaction on tumbling funds: Evidence from retail fund outflows during the financial crisis 2007/2008. (S. 1-28). (Working Paper Series in Economics; Nr. 228). Institut für Volkswirtschaftslehre der Universität Lüneburg.

Vancouver

Schmidt D, Schmielewski F. Consumer reaction on tumbling funds: Evidence from retail fund outflows during the financial crisis 2007/2008. Lüneburg: Institut für Volkswirtschaftslehre der Universität Lüneburg. 2012, S. 1-28. (Working Paper Series in Economics; 228).

Bibtex

@techreport{4b32b84aecaf469faecbeb8231a7bd7c,
title = "Consumer reaction on tumbling funds: Evidence from retail fund outflows during the financial crisis 2007/2008",
abstract = "Contrary to the findings reported in some of the extant literature, our study indicates that over the past few years a change in investors{\textquoteright} behavior patterns means that investment decisions are made at short notice, and that shares are redeemed in a discriminatory manner when funds perform poorly. By using a data assembled from 1672 retail funds in Germany over the period March 2008 to April 2010, we are able to show that in general, both the prior fund performance and prior net redemptions have a statistically significant influence on fund outflows. Moreover, there are indications that in recent crises situations that have resulted in the withdrawal of shares investors react fast to market signals. Our findings will also highlight areas in which policy-makers, regulatory authorities and the fund industry should establish a strong regulatory framework to prevent liquidity shortages of retail funds.",
keywords = "Economics, empirical/statistics, Liquidity risk, financial fragility, bank run, mutual funds, fund flows, net redemption of fund shares, fund performance, fund industry, risk sharing, Economics",
author = "Daniel Schmidt and Frank Schmielewski",
year = "2012",
language = "English",
series = "Working Paper Series in Economics",
publisher = "Institut f{\"u}r Volkswirtschaftslehre der Universit{\"a}t L{\"u}neburg",
number = "228",
pages = "1--28",
type = "WorkingPaper",
institution = "Institut f{\"u}r Volkswirtschaftslehre der Universit{\"a}t L{\"u}neburg",

}

RIS

TY - UNPB

T1 - Consumer reaction on tumbling funds

T2 - Evidence from retail fund outflows during the financial crisis 2007/2008

AU - Schmidt, Daniel

AU - Schmielewski, Frank

PY - 2012

Y1 - 2012

N2 - Contrary to the findings reported in some of the extant literature, our study indicates that over the past few years a change in investors’ behavior patterns means that investment decisions are made at short notice, and that shares are redeemed in a discriminatory manner when funds perform poorly. By using a data assembled from 1672 retail funds in Germany over the period March 2008 to April 2010, we are able to show that in general, both the prior fund performance and prior net redemptions have a statistically significant influence on fund outflows. Moreover, there are indications that in recent crises situations that have resulted in the withdrawal of shares investors react fast to market signals. Our findings will also highlight areas in which policy-makers, regulatory authorities and the fund industry should establish a strong regulatory framework to prevent liquidity shortages of retail funds.

AB - Contrary to the findings reported in some of the extant literature, our study indicates that over the past few years a change in investors’ behavior patterns means that investment decisions are made at short notice, and that shares are redeemed in a discriminatory manner when funds perform poorly. By using a data assembled from 1672 retail funds in Germany over the period March 2008 to April 2010, we are able to show that in general, both the prior fund performance and prior net redemptions have a statistically significant influence on fund outflows. Moreover, there are indications that in recent crises situations that have resulted in the withdrawal of shares investors react fast to market signals. Our findings will also highlight areas in which policy-makers, regulatory authorities and the fund industry should establish a strong regulatory framework to prevent liquidity shortages of retail funds.

KW - Economics, empirical/statistics

KW - Liquidity risk

KW - financial fragility

KW - bank run

KW - mutual funds

KW - fund flows

KW - net redemption of fund shares

KW - fund performance

KW - fund industry

KW - risk sharing

KW - Economics

UR - http://econpapers.repec.org/paper/luewpaper/228.htm

M3 - Working papers

T3 - Working Paper Series in Economics

SP - 1

EP - 28

BT - Consumer reaction on tumbling funds

PB - Institut für Volkswirtschaftslehre der Universität Lüneburg

CY - Lüneburg

ER -

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