Open AccessThe Impact of Advertising on Fund Flows in Alternative Distribution Channels
Author(s) -
Jeffrey J. Yankow,
Thomas I. Smythe,
Vance P. Lesseig,
Michael A. Jones
Publication year - 2011
Publication title -
international journal of financial research
Language(s) - English
Resource type - Journals
eISSN - 1923-4031
pISSN - 1923-4023
DOI - 10.5430/ijfr.v2n1p2
Subject(s) - equity (law) , sample (material) , empirical evidence , fixed income , business , mutual fund , economics , econometrics , monetary economics , finance , bond , philosophy , chemistry , epistemology , chromatography , political science , law
Existing literature demonstrates a positive relationship between advertising and subsequent mutual fund flows. While this relationship is hardly unexpected, it has only been addressed in a limited fashion. This work seeks to explore the issue in greater depth by examining both fixed income and equity funds, by separating load and no-load funds, and by using a richer empirical model. Our findings support the accepted relationship in general, but indicate that the response by investors differs between fund types (equity vs. fixed income) and the direct (no-load) and broker-sold (load) markets. Finally, we provide evidence that earlier findings are contingent upon the sample of funds selected as well as the empirical specification