À繫¿¬±¸ Á¦ ±Ç È£ (2019³â 11¿ù)
Asian Review of Financial Research, Vol., No..
pp.166~194
pp.166~194
Fund Distributors and the Star Phenomenon
Kang Baek Associate Professor, Department of Business Administration and Accounting Hanbat National University
Uninformed investors preferentially select distribution companies to purchase funds that suit their investment objectives, because they cannot evaluate each product themselves. Thus, the investment decision depends significantly on their chosen fund distributor¡¯s recommendation. This study analyzes whether fund flows from each distribution channel indicate different responses to the determinants of investment decisions, and whether this distinction is caused by a fund distributor¡¯s transaction-specific variables, especially its reputation (the start phenomenon). The results demonstrate that fund and fund management company flows have significantly different patterns according to distribution channels, and fund distributor flows are affected by their financial business segment, market power, vertical relation, and reputation. This result contributes by providing the insight that changes in the incentive structure of distribution channels lead to different outcomes in terms of investor protection and market competition.
Kang Baek
Uninformed investors preferentially select distribution companies to purchase funds that suit their investment objectives, because they cannot evaluate each product themselves. Thus, the investment decision depends significantly on their chosen fund distributor¡¯s recommendation. This study analyzes whether fund flows from each distribution channel indicate different responses to the determinants of investment decisions, and whether this distinction is caused by a fund distributor¡¯s transaction-specific variables, especially its reputation (the start phenomenon). The results demonstrate that fund and fund management company flows have significantly different patterns according to distribution channels, and fund distributor flows are affected by their financial business segment, market power, vertical relation, and reputation. This result contributes by providing the insight that changes in the incentive structure of distribution channels lead to different outcomes in terms of investor protection and market competition.
Fund Flow,Distribution Channel,Fund Distributor,Investor Protection,Oligopolistic Market Structure.