Please use this identifier to cite or link to this item: http://scholarbank.nus.edu.sg/handle/10635/18014
Title: The buffering factors to the money flows of scandal-tainted funds
Authors: JIN XUHUI
Keywords: 2003 mutual fund scandal,fund flows,12b-1 fees,ownership structures of management companies,distribution channels,reputation effects
Issue Date: 18-Aug-2009
Source: JIN XUHUI (2009-08-18). The buffering factors to the money flows of scandal-tainted funds. ScholarBank@NUS Repository.
Abstract: The 2003 mutual fund scandal was the largest in the 65-year history of mutual funds in the U.S. In total over one thousand funds and $1 trillion in assets were investigated regarding allegations about late trading and market timing. Mutual funds implicated in this scandal experienced large amounts of outflows after the investigations were initiated. This paper examines whether the 12-b1 fees, ownership structure of fund management companies, funds¿ distribution channels and their SEC charge records have some effects on fund flows after the sandal was exposed. This study finds that the differential treatment in market punishment can be explained by the ownership structures of the fund management companies. However, the distribution channels of fund shares seem to have little effect in mitigating outflows. This study reveals the diverse concerns of mutual fund investors, expands on previous research and adds to the understanding of investment patterns when investors faced the largest fund scandal in the history of the mutual fund industry. The fund industry can learn from this relationship and exploit these investor behavior patterns to buffer the shocks of management crisis on their assets under management.
URI: http://scholarbank.nus.edu.sg/handle/10635/18014
Appears in Collections:Master's Theses (Open)

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